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Issues Involved:
1. Jurisdiction and Acts of State 2. Situs of Debt 3. Seizure of Debt by Indore State Authorities 4. Potential Double Payment Issue-wise Detailed Analysis: 1. Jurisdiction and Acts of State: The appellant contended that the notices and orders from the Indore State authorities were acts of State sufficient to discharge his liability to Shankarrao. The legal basis for this argument was supported by the principle that "This Court will not inquire into the legality of acts done by a foreign Government against its own subjects in respect of property situate in its own territory." This principle was established in cases such as *Aksionairnoye Obschestvo A. M. Luther v. James Sagor & Co.* and *Princess Paley Olga v. Weisz*. The court noted that to apply this rule, the appellant needed to prove: (i) both parties were subjects of the Indore State, (ii) the debt was situated in Indore, (iii) the acts amounted to a seizure of the debt, and (iv) these acts were by the Indore Government. 2. Situs of Debt: The primary contention was whether the debt was situated in Indore or Bombay. The general rule is that the situs of a simple contract debt is where the debtor resides. The court referenced *New York Life Insurance Co. v. Public Trustee* and other cases to establish that the debtor's residence determines the debt's location. The appellant argued that since he resided in Indore, the debt was situated there. The court agreed, noting that the appellant was the sole proprietor of the businesses in both Indore and Bombay, and both parties resided in Indore. Thus, the debt was considered to be situated in Indore. 3. Seizure of Debt by Indore State Authorities: The court examined whether the Indore State authorities had effectively seized the debt before the plaintiff's attachment order on May 15, 1924. Evidence showed that on April 17, 1924, the Inspector General of Police in Indore notified the appellant of the attachment of Shankarrao's properties and demanded the sum due. The appellant acknowledged this and undertook to pay the amount to the Indore State. By May 15, 1924, the appellant had credited the amount due to Shankarrao in his books to the Maharajah Holkar's account. The court concluded that the debt had been seized by the Indore authorities by May 15, 1924, and thus, the plaintiff's attachment could not operate on it. 4. Potential Double Payment: The appellant attempted to raise an alternative argument that the action was akin to garnishee proceedings and that it was not the court's practice to make an order that could result in double payment. The court held that this point was not open to the appellant as it was not pleaded, no issue was raised on it, and it was not included in the grounds of appeal. The court also noted that the appellant had not been required to make any payment for more than seven years, suggesting that the Indore authorities might not pursue the debt if the court's decision indicated their claim was unfounded. Conclusion: The appeal was allowed with costs, and the action was dismissed with costs. The court found that the debt had been effectively seized by the Indore State authorities before the plaintiff's attachment order, and thus, the attachment could not operate on the debt. The appellant's alternative argument regarding potential double payment was not considered as it was not properly raised during the proceedings.
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