debt being a judgment debt or a debt arising out of statute, but the Principle was that if the debts were of equal degree ... 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
creditor would take precedence over the right of recovery
of a crown debt or any other debt. Finally, he prayed that respondents ... that rights of the Crown to recover
the dues would prevail over the right of the subject. The Crown
debt means the debts
would also not even
otherwise come within the purview of the Crown debt.
Even a Crown debt could be discharged only after the
secured creditors ... subject. Crown debt means the 'debt due to the
State of the Kind; debts which a prerogative
entitles the crown to claim priority
revenue claimed a preferential right to realise its dues being
crown debt.
In the written statement it is pointed out that the assessment was
completed ... that the secured creditor has a preferential rights as against the
crown debt. The crown debt has priority only amongst unsecured creditors.
Reference has also
holding that the dues of Income Tax Department, being crown
debt, shall get priority over other debts in the matter of recovery relying upon
VIMAL ... that the Crown has no precedence over a
pledgee of goods. In the present case, the common law of England qua
Crown debts became applicable
payment.
Learned counsel for the petitioner has vehemently argued that
the crown-debt such as Central Excise dues or the State Sale Tax dues ... laid down in the
judgments relied upon by the petitioner that crown debt has a priority only
amongst unsecured creditors after satisfying the claim
accordance with law- These were in the nature of Crown debts and were recoverable as arrears of land revenue. Recovery on account of rent
debts to the Crown."
4. The Crown's priority in respect of payment of the Crown debts arose from the special pre-eminence ... State for the debts due to it The common law doctrine, that if the debts due to the Crown are of equal degree
relied on was the Common law doctrine that if the debts due to the Crown are of equal degree to the debts ... debt being a judgment-debt or a debt arising out of statute but the principle is that if the debts are of equal degree
Generally, the dues to Government i.e. tax, duties
etc. (Crown's debts) get priority over ordinary
debts ... upheld either on the
applicability of doctrine of priority of Crown debts or
C.W.P No. 1385 of 2008 ::6::
that any such priority
