GH MOHD Vs. AHMAD GHULAM DAR & CO

JUDGEMENT

(1.) THIS is an appeal from the decision of the District Judge, Kashmir and arises out of the following circumstances.

(2.) THE controversy is in regard to the priority claimed by the State for recovery of income -tax due from an assesses against whom execution was taken out by the decree -holder for the recovery of the decretal amount. In the course of the execution proceedings two cheques for Rs. l,367/4/ -and for Rs. 2,100/87 nP. due to the judgment -debtor were received from the Military authorities by the executing court.

(3.) IT is contended that the decree -holder had obtained attachment of the assessees moneys due from the Military authorities and as the moneys due to the judgment -debtor assesses were already attached at the instance of the creditor, the in -come -tax authorities could not claim any preference for the recovery of their dues over the decree -holder. It is further contended that the State becomes one of the creditors and is relegated to ratable distribution along with the decree -holders creditors and cannot claim priority over them.