TMI Blog1935 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. The Full Bench took the view that the debt in question was not a Crown debt. This decision is so fundamentally wrong that I think a revision petition is justified. 2. The facts shortly stated are that the respondent had obtained a money decree on a debt, and in execution had attached and brought to sale a motor car belonging to his judgment-debtor. The decree was made on 9th September, 1931 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench's decision to the contrary. The debt being created by Act was a specialty debt, and debts due to the Crown by record or specialty have priority over all other debts. Even regarding the debt as a simple debt the Crown would have the prior right to payment over the respondent, because whenever the right of the Crown and the right of the subject in respect of payment of a debt of equal deg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be paid out of the sale proceeds; see Clarke In re (1898) 1 Ch. 336 at 39. 4. But the effect of an attachment in India under the Civil Procedure Code is not to create a charge or to convert the attaching creditor into a secured creditor. The money, the sale proceeds, being in court, and unpaid to the decree-holder, I think that the Court on receiving notice of the Crown debt was bound to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editors, no necessity exists for attachment of the fund before claiming payment. The court is bound by Section 284 of the Code to pay the proceeds of the attached property to such parties as are entitled under the decree to recover the same, and, inasmuch as I must hold that the Crown is entitled to be paid the amount of the court-fees in precedence to the plaintiff by whom the amount, in court wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars of tax, this did not prevent the Crown from putting forward its claim in liquidation proceedings. 6. I hold therefore that the order of the lower Court must be reversed; that the proper order is that the Crown is entitled to receive payment of its debt for ₹ 50 out of the money in court; and that this petition must be allowed with costs throughout. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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