Supreme Court of India · 1964-11-30
BUILDERS SUPPLY CORPORATION vs THE UNION OF INDIA REPRESENTED BY THE COMMISSIONER O
- Citation / case number
- SC 1963/281
- Court
- Supreme Court of India
- Petitioner
- BUILDERS SUPPLY CORPORATION
- Respondent
- THE UNION OF INDIA REPRESENTED BY THE COMMISSIONER O
- Author
- GAJENDRAGADKAR, P.B. (),HIDAYATULLAH, M.,SHAHC.,SIKRI, S.M.,BACHAWAT, R.S.
- Bench
- GAJENDRAGADKAR, P.B. (CJ),HIDAYATULLAH, M.,SHAH, J.C.,SIKRI, S.M.,BACHAWAT, R.S.
Judgment text excerpt
The Supreme Court held that the doctrine of priority of Crown debts applies in India, allowing the Union of India to claim priority over unsecured creditors for tax dues under Section 46(2) of the Indian Income Tax Act, 1922. The Court clarified that this doctrine is a 'law in force' as per Article 372(1) of the Constitution, and it supersedes other claims against the judgment-debtor. Consequently, the appeal was dismissed, affirming the Executing Court's decision to prioritize tax recovery over the appellant's judgment debt.