TMI Blog1997 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... lder is directed against the judgment of the Allahabad High Court dated September 22, 1981, in Civil Revision No. 835 of 1974 filed by the Union of India against the order dated March 4, 1974, passed by the Civil and Sessions judge, Agra, in execution proceedings pending before him. The facts, in brief, are as follows : Various persons held decrees against John Mills and Company. In proceedings for execution of those decrees, the decree-holders sought to attach various sums of money which were lying to the credit of the said judgment-debtors in the Court of Civil Judge, Agra, in Suit No. 76 of 1979. The decree-holders moved an application for rateable distribution under section 73 of the Code of Civil Procedure. In the present case, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decree-holders or the creditors of the judgment-debtors in accordance with law the money held by the court continued to be liable to be proceeded against under section 226(4) of the Act. It was submitted on behalf of the appellant before the High Court that the income-tax liabilities of the judgment-debtors were the subject matter of a number of writ petitions and in those writ petitions by order dated April 8, 1980, the demand giving rise to such liabilities has been quashed. On behalf of respondent No. 1, it was pointed out that the demand in respect of which the application under section 226(4) had been filed consisted of not only the liabilities of income-tax but also those under the Excess Profits Tax Act. The High Court did not consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Code, which provides as under : "73. Proceeds of execution sale to be rateably distributed among decree-holders.--(1) Where assets are held by a court and more persons than one have, before the receipt of such assets, made application to the court for the execution of decrees for the payment of money passed against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realization, shall be rateably distributed among all such persons : Provided as follows : (omitted)." Under section 73, Civil Procedure Code, the money lying in the executing court continues to belong to the judgment-debtor till it is disbursed among the decree-holders or other creditors of the judgment-debtor. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds are lying in deposit in court, the State may, even without prior attachment, exercise its right to priority by making an application to the executing court for payment out. If, however, the State does not choose to apply to the court for payment of its dues from the amount lying in deposit in the court but allows the amount to be taken away by some other attaching decree-holder, the State cannot thereafter make an application for payment of its dues from the sale proceeds, since there is no amount left with the court to be paid to the State . . ." These observations do not lend support in the case of the appellant because in the present case it cannot be said that the Union of India had allowed the amount to be taken away by the decree ..... X X X X Extracts X X X X X X X X Extracts X X X X
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