CHACKO Vs. UNION OF INDIA

JUDGEMENT

(1.) The plaintiff in OS No. 24 of 1958 of the court of the Additional Subordinate Judge, Trichur, is the appellant before us. The respondent is the Union of India, the 1st defendant in that suit.

(2.) The suit was for the recovery of an amount of Rs. 10,000/- deposited by one T. P. Francis with the Southern Railway as security for the due performance of an agreement between him and the railway. The deposit was made on 17-5-1951, and Ext. P. 1 of the said date is the receipt issued by the Railway. The appellant derived the right to institute the suit by virtue of a Power of Attorney executed by T. P. Francis, Ext. P. 5 dated 10-7-1953.

(3.) The main question for consideration is the character of the rights conveyed by Ext. P. 5. According to the Union of India arrears of income tax to the extent of Rs. 30,591-14-0 were due from T. P. Francis at the time of the execution of Ext. P. 5 and the State is entitled to a preferential payment in respect of those arrears. This contention is stated as follows in paragraph 5 of the written statement dated 7-1-1956 :