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Interpretation of relevant provisions of the Estate Duty Act in a rent recovery case. Analysis: The judgment involves an appeal against a decree for arrears of rent granted by the trial court. The main defense raised was the statutory attachment of rents by the estate duty authority under the Estate Duty Act, 1953, making the suit not maintainable. The plaintiff claimed arrears of rent up to August 31, 1977, at a specified rate. The defendant argued that a garnishee order had been issued by the estate duty authority demanding payment towards estate duty, which the defendant partially paid. The key issue was whether the plaintiff could recover the rent in light of the Estate Duty Act provisions. The Estate Duty Act, particularly sections 73 and 74, were crucial in determining the outcome. Section 74(1) establishes estate duty as a first charge on immovable property passing on the deceased's death. The defendant contended that payment should be made only to the estate duty authority. The defendant's compliance with the garnishee orders was highlighted, but the lack of evidence of full payment was noted. The court considered the applicability of the proviso in section 74(2) to section 74(1) and rejected the argument that the plaintiff, as a bona fide purchaser, was exempt from the duty charge. Case law, such as Madan Lal Lohia v. Asst. CED, was referenced to emphasize the lessee's obligation to comply with estate duty notices. The court also discussed the impact of the repeal of the Indian Income-tax Act, 1922, on the Estate Duty Act, clarifying that the provisions remained effective. The defendant's argument that only the estate duty authority could recover the amount was accepted, but the timing of the suit filing in relation to the garnishee orders was crucial. The court found that the suit for arrears filed after the second garnishee order was not maintainable, yet a decree for the balance owed by the defendant was granted, along with interest. In conclusion, the judgment modified the lower court's decree, restricting it to the balance due to the plaintiff after considering the estate duty attachments and the timing of the suit filing. The appeal was partially allowed, with the court granting a decree for the remaining amount owed by the defendant, along with interest from a specified date.
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