1935 (8) TMI 21

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....to be paid its debt in priority to other creditors. 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-debt....

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....ite properly not attempted to justify the Full 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 subjec....

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....with a legal right to have the goods sold and 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 receivi....

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....licitor is entitled to precedence over all other creditors, 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 preceden....