COLLECTOR OF AURANGABAD & ANR. vs CENTRAL BANK OF INDIA & ANR.

The Supreme Court held that Section 119 of the Hyderabad Land Revenue Act empowers the Collector to distrain movable property even if it is in the custody of the court. However, the Court clarified that the Government's claim for priority regarding sales-tax arrears does not supersede the decree-holder's rights under Section 104 and Section 116 of the Act, as the doctrine of 'Priority of Crown debts' was not recognized in Hyderabad State prior to the Constitution coming into force. Consequently, the High Court's ruling was overturned, affirming the decree-holder's priority over the Government's claim.