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Report No. 60

10.19. Public Welfare.-

The third justification for priority of Government's debts is the aspect of public welfare. A full Bench of the Madras High Court1 has pointed out that the rule is based upon an important doctrine of public welfare.

"This rule may be said to be the outcome of the maxim salus populi suprema lex (regard for the public welfare is the highest law). It is but natural that a debt at large should be preferred to the debt of a single creditor."

1. Collector of Tiruchirapalli v. Trinity Bank Ltd., (1962) 44 ITR 189 (195) (Mad) (FB).

General Clauses Act, 1897 Back

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