Judgement

Appeal (No. 71 of 1938) from a judgment and order of the High Court (April 9, 1937) which reversed a judgment and order of the First Subordinate Judge of Howrah (January 28, 1935).

The first respondent obtained a decree for a large sum against the appellants. Certain payments were made towards the discharge of the decree which were not certified and recorded and there remained on the face of the decree a sum of Rs.3,32,373. As there was a sum of Rs.3,86,000, arrears of income-tax, due from the first respondent, the income-tax authorities, acting under the Bengal Public Demands Recovery Act, attached the decree and applied for execution. The appellants alleged payments had been made towards the discharge of the decree and the real balance outstanding was only Rs. 1,60,000 and the authorities agreed to accept this sum in full satisfaction of the decree. The appellants paid this sum and applied to the Court to record the adjustment of the decree.

The first respondent, who was made a party to the proceedings, contended that it was not competent to the income-tax authorities to adjust the decree

The Subordinate Judge held that the income-tax authorities were competent to adjus