Law:

Section: S. 8

  Bengal Public Demands Recovery Act (III of 1913), S. 8 --Government entitled to get precedence over unsecured debt, but not over secured debt.   Income-tax Act (XI of 1922), S. 46 (2) proviso-Provides two alternatives to Collector for recovery - One under Public Demands Recovery Act, 1913 and other by proceeding according to S. 51 and O. XXI, Civil Procedure Code (V of 1908).   Bengal Public Demands Recovery Act (III of 1913), Schd. II, r. 22-No particular formality by Certificate Officer required-- Executing Court competent to decide question of priority between decree-holder and Income-tax Department and cart issue payment order.   Associated Pictures v. Union of India 37 I T R 487 and Builders Supply Corporation v. Union of India 28 I T R 797 rel.   JUDGMENT   AKBAR, J.-These two appeals arise from a common set of facts. They have been heard together and it will be convenient to dispose of these appeals by one judgment.   The facts in these cases are briefly as follows. In 1954 a sum of Rs. 40,274 was duefrom Machertich & Co. of Daida, Lohaganj, Dacca on account of income-tax and penalty. The said Company had two partners namely, Machertich and Mohammad Singh. Machertich and Mohammad Singh having died, the Income-tax Officer, on 24-5-54, ordered issue of a certificate under section 46 (2) of the Income-tax Act against their heirs. On 8-7-54 the order of attachment was passed. On- 16-11-55 in Money Execution Case No. 3 of 1955 certain properties belonging to Machertich & Co. were sold for Rs. 35,325. In the said case the decree-holders' claim amounted to Rs. 23,823-5-9. In Money Execution Case No. 4 of 1955, certain other properties belonging to the said company were sold for Rs. 33,250. In this case the decree-holders' claim amounted to Rs. 11,377-7-0.   On 23-11-56, the Income-tax Officer sent a notice under section 46 (5-A) of theIncome-tax Act to the Executing Court asking them to pay Rs.40,274 being the amount due from Machertich & Co. out of the sale proceeds of the properties of the said Company. On 8-12-55 the Certificate Officer, Dacca wrote as follows to the Executing Court:-  …