private debts as Crown debts in England. This observation
was made, because in the case with which the Court was
concerned, the hypothecation ... deals with
substantive rights of the Crown as against its subjects, as,
for example, the priority of Crown debts over debts of the
same nature
crown debt
5
prevails over other debts is confined only to the unsecured ones as secured
debts will always prevail over a crown debt ... Generally, the rights of the crown to recover the debt would prevail
over the right of a subject. Crown debt means the debts
been imposed, and such a debt often goes by the name of a "crown debt". A debt due to the Sovereign Government ... question for consideration was whether the debt due to the Crown was entitled to priority over the debt due to the mortgagee in respect
assessee is a debt due to the Crown and as such the debts must have precedence over all other debts. Consequently, it was held there ... character of a prerogative of the Crown to collect revenue and therefore Crown debt was given the priority on the basis
priority given to the Crown was not on the basis of its debt being a judgment debt or a debt arising out of statute ... Common law doctrine of priority of Crown would not extend to providing preference to Crown debts over secured private debts. It was impact of Section
Section 209 , Sub-section (1)(a), certain Crown debts, which I will call the specified Crown debts, are brought into the class of debts identified ... other debts, whether Crown debts or not, which are not in that
class. Further, all debts, whether Crown debts or not, which
dues are normally referred to as “Crown Debt”. The position insofar
as priority of Crown Debt could be summarised as under:
a. The principle ... public policy.
b. Between an unsecured creditor and crown debt, it is the crown debt
which would prevail as held by the Constitution Bench
revenue, the debt will not have priority over the secured debt. Thus, the above decisions confirm the view that the Crown debt will have ... priority given to the Crown is not on the basis of its debt being a judgment-debt or a debt arising out of statute
vancore State the doctrine of Crown privileges in the matter of priority for Crown debts was recognised or adopted.
15. The earliest Revenue Recovery ... Judge found there that the debt due to the State was a trade debt and not a revenue debt
20. Hence, we have to hold
priority given to the Crown is not on the basis that the debt being a judgment-debt or a debt arising out of statute ... that its debts have priority over the
debt of the petitioner based on the common law doctrine of priority of Crown debts
cannot be sustained
