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Report No. 60

10.10. Section 13C (New)-Priority debts due to the Government.-

We have already dealt with one question concerning1 the Government. Another question relevant to the position of the Government concerns the priority of debts due to the Government. In general, the Government has preference in respect of the payment of debts due to it. As early as 1868, in a judgment discussing the entire history of the Royal prerogative in this respect, the High Court of Bombay2 laid down that a judgment debt due to the Crown is entitled to the same precedence in execution as a judgment debt in England due to the Crown, provided there is no special legislative provision affecting that right in the particular case. But there are certain refinements and limitations as to this doctrine, which require to te consdered.

1. Paras. 10.1 to 10.9, supra.

2. Secretary of State for India v. Bombay Landing and Shipping Company, (1868) 5 BHCR 23.

General Clauses Act, 1897 Back

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