Report No. 60

10.15. Relevance of doctrine that Crown is not bound.-

Another aspect of the matter which requires consideration is, whether the well-known decision of the Supreme Court,1 holding that the common-law doctrine that the Crown is not bound by the statute is not the law in force in India, has any bearing on the operation of the doctrine of priority of Crown debts. The Bombay High Court2 has held that there is no warrant for treating the two principles on the same footing. The High Court took the view that the doctrine that Crown is not bound by statute is archaic and undemocratic, while the principle of the priority of Crown debts is "based on equity and justice, and serves an important public purpose."

1. State of West Bengal v. Corporation of Calcutta, AIR 1967 SC 997, para. 10.7, supra.

2. Union of India v. Official Assignee, (1970) 73 Born LR 623.