subject. Crown debt means the
„debts due to the State or the King; debts
which a prerogative entitles the Crown to
claim priority for before ... other debts, whether Crown debts
or not, which are not in that class. Further, all
debts, whether Crown debts or not which
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
contention must therefore fail.
Re: (3)
It is settled law that Government debts have precedence only over
unsecured creditors. This was held in Dena Bank ... follows:
“10. However, the Crown's preferential right to recovery of debts over
other creditors is confined
debt is made recoverable under
the provisions of the Revenue Recovery Act , that would not in any
manner alter the nature of the debt ... Writ Appeal No. 1848 of 2012
: 23 :
the priority of Crown debts at all; it merely
provides for the recovery of the arrears
While
considering the general position of debts due to the Crown and
the prerogative rights of the Crown in the liquidation of a
company under ... Crown to priority no longer exists.' (Lord
Wrenbury in Food Controller v. Cork [1923] AC 647 672). The Crown is
accordingly not entitled
parties, the Court finds that the Crown's preferential right to recover its debts over other creditors ... confined to ordinary or unsecured creditors and that the Crown's debts does not override the right of a secured creditor unless there
Stock Exchange, Bombay vs V.S. Kandalgaonkar . on 25 September, 2014
Author: R.F.Nariman
petitioner to sell the secured assets on
the principle of Crown debt having priority.
1.2. It is also further prayed to declare that proviso ... Central Excise Dues payable in respect of Rohil Zinc
Limited being crown debt has to be paid as first priority amongst all the
recoveries. According
India Vs.
SICOM Ltd. (2009) 2 SCC 121 to contend that a debt which is
secured by reason of a provision of a statute becomes ... over
the property and must be held to prevail over the crown debt due to
the State or King.
23. I am therefore
Whether the State can invoke 'doctrine of priority of crown debt'
while seeking priority of recovery of funds in the form of excise ... held either on the applicability of
doctrine of priority of Crown debts or that any such priority has been so
created under
