P.B.Mukharji, J. - (1.) This is a race between the State and the private citizen for Law's rewards. It is an application by the State of West Bengal claiming priority over a private creditor in respect of certain funds in the hands of a Receiver and by specific order" of Court ear-marked for payment to the creditor who is the decree-holder.
(2.) The State is a stranger to the suit. The suit was brought by Murli Tahilram against the firm of T. Assomal and Co. On 10-9-1953 a decree was passed in this suit against the defendant for the sum of Rs. 2860-2-4 with interest at six per cent, per annum and costs. Prior to that date, on 4-8-1953 an order had been made in that suit appointing the Official Receiver of Calcutta the Receiver of the business of the defendant firm including all the goods, stock-in-trade, furniture and fittings at A 7/10, New Market, Calcutta. In execution of the decree a further order was made on 19-1-1954 in this suit directing the Official Receiver to sell the said goods, stocks and furniture. The Receiver was directed by that order to pay to the plaintiff decree-holder out of the sale proceeds in satisfaction of the decree. It is material to set out the terms of this Court's order dated 19-1-1954 which are: "It is ordered that the Official Receiver of this Court who was appointed herein do forthwith sell by public auction to the best purchaser or purchasers that can be got for the sale of the said property in execution of the said decree and it is further ordered that the said Receiver do pay to the plaintiff the proceeds of such sale as aforesaid after payment of costs and expenses of such sale and the commission payable thereon towards pro tanta satisfaction of his claim under the said decree, and the balance thereof, if any, to be held by the said Receiver subject to further orders of this Court."
(3.) The Official Receiver under this order has already sold the goods. He is now holding the sale proceeds. He was about to pay to the decree-holder when the State of West Bengal on 27-7-1954 intervened in this suit with this application presenting a claim for unpaid sales tax against the defendant Judgment-debtor and obtained an ex parte ad interim injunction restraining the plaintiff decree-holder from receiving the money from the Receiver.;