Judgment

GAJENDRAGADKAR, C.J.I.:

The short question of law which arises in this appeal is whether respondent No. 1 the Union of India, is entitled to claim that the tax due to it from respondent No. 2, M/s. R.K. Das and Co., on account of the assessment years 1946-47 and 1947-48 has priority and precedence over the decretal amount due to the appellant, M/s. Builders Supply Corporation, from respondent No. 2. This question has been answered against the appellant by the Calcutta High Court, and by its present appeal brought to this Court with a certificate issued by the said High Court, the appellant contends that the decision of the Calcutta High Court is erroneous in law.

2. It appears that respondent No. 2 secured a building contract from the Government in connection with the construction of the Mint and in that behalf it had to make a deposit of Rs. 50,000 as security for the due execution of the contract. In connection with the execution of the said contract, respondent No. 2 obtained a supply of building materials from the appellant. The appellant was unable to secure payment for the goods thus supplied by it, and so, it had to sue respondent No. 2 for recovery of the dues. In tha