T.S. SWAMINATHAUDAYAR vs THE OFFICIAL RECEIVER OF WEST TANJORE.

The Supreme Court ruled that a decree for owelty payment in a Partition Suit implicitly creates a charge in favor of the co-sharer receiving the payment, even if not expressly stated, which takes precedence over prior mortgagees. The Court set aside the High Court's erroneous view that allowed a judgment-creditor of the co-sharer liable for owelty to claim priority, emphasizing that the Official Receiver could pay owelty from sale proceeds. The decision clarified the rights of co-sharer decree-holders versus creditors of the insolvent, affirming the Receiver's liability under the decree.