Priority of State tax dues extends to sale proceeds after prior attachment, enforceable against later decree-holder.

The State's claim for priority over income-tax dues prevails over other debts when it has already attached the judgment-debtors' property before sale. That prior attachment extends to the sale proceeds, so the State is not defeated merely because a subsequent decree-holder has received the amount from court. Where the proceeds have been withdrawn, the statutory scheme under Section 73 of the Code of Civil Procedure permits the State to enforce its priority by suit against the decree-holder who took the money. The prior attachment therefore fastens on the proceeds and supports recovery from the recipient.

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Issues: Whether the State, having earlier attached the judgment-debtors' property for recovery of income-tax dues, could recover the sale proceeds from a subsequent decree-holder who had received the amount from court.

Analysis: Debts due to the State are entitled to priority over other debts. Where sale proceeds remain in court, the State may seek payment out in priority. Where the State has already attached the property before sale, that prior attachment attaches to the sale proceeds as well, and the State is not defeated merely because the amount has been withdrawn by another decree-holder. The statutory scheme under Section 73 of the Code of Civil Procedure permits such relief in a suit when the proceeds have been taken away. The prior attachment therefore operates on the proceeds received by the later decree-holder.

Conclusion: The State was entitled to recover the sale proceeds from the decree-holder who had taken them away.

Ratio Decidendi: A prior attachment by the State fastens upon the sale proceeds of the attached property, and the State's priority is enforceable by suit against a subsequent decree-holder who has received those proceeds.

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