Talyarkhan, J - (1.)An important question under the Indian Companies Act has been raised in this liquidation as regards the right of the Crown in a winding up to payment of its debt in priority to all other creditors of the company.
(2.)The Secretary of State for India is a judgment-creditor of the company in liquidation for Rs. 3922-15-8 including costs, for monies due in respect of certain trade or commercial dealings between the parties, and he claims that his debt is a Crown debt and that under the Indian Companies Act it is entitled in the winding up to priority of payment over all other creditors of the company.
(3.)It is not disputed that the debt is a Crown debt but the liquidator denies that it is entitled to priority under the Indian Companies Act.