MURLI TAHILRAM Vs. T ASOOMAL AND CO

JUDGEMENT

(1.) This is a race between the State and the private citizen for Law's rewards. It is an application by the State of West Bengal claiming priority over a private creditor in respect of certain funds in the hands of a Receiver and by specific order" of Court ear-marked for payment to the creditor who is the decree-holder.

(2.) The State is a stranger to the suit. The suit was brought by Murli Tahilram against the firm of T. Assomal and Co. On 10-9-1953 a decree was passed in this suit against the defendant for the sum of Rs. 2860-2-4 with interest at six per cent, per annum and costs. Prior to that date, on 4-8-1953 an order had been made in that suit appointing the Official Receiver of Calcutta the Receiver of the business of the defendant firm including all the goods, stock-in-trade, furniture and fittings at A 7/10, New Market, Calcutta. In execution of the decree a further order was made on 19-1-1954 in this suit directing the Official Receiver to sell the said goods, stocks and furniture. The Receiver was directed by that order to pay to the plaintiff decree-holder out of the sale proceeds in satisfaction of the decree. It is material to set out the terms of this Court's order dated 19-1-1954 which are:

(3.) The Official Receiver under this order has already sold the goods. He is now holding the sale proceeds. He was about to pay to the decree-holder when the State of West Bengal on 27-7-1954 intervened in this suit with this application presenting a claim for unpaid sales tax against the defendant Judgment-debtor and obtained an ex parte ad interim injunction restraining the plaintiff decree-holder from receiving the money from the Receiver.