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Issues:
1. Interpretation of Madras Act II of 1864 regarding the priority of encumbrances on property sold for arrears of abkari revenue. 2. Determination of whether arrears of abkari revenue take precedence over a prior hypothecation debt as a Crown-debt. Detailed Analysis: 1. The judgment revolves around the interpretation of Madras Act II of 1864 concerning the priority of encumbrances on property sold for arrears of abkari revenue. The property in question was initially hypothecated to the appellant by Kuli Muttu Nadan. Subsequently, the respondent, Pitchaikanni Marakayar, purchased the property at a sale for arrears of abkari revenue due by Kuli Muttu. The appellant, having obtained a decree upon the hypothecation bond, attached the property in execution. However, the respondent opposed the attachment, leading to the current suit. The key issue was whether the respondent's purchase was free of the prior hypothecation, either under Act II of 1864 or due to the precedence of debts due to the Crown over private debts. The court analyzed various sections of the Act, emphasizing that the purchase is free of encumbrances only when the arrear is of public revenue for which the land is the primary security by statutory declaration. 2. The second issue addressed in the judgment pertains to whether arrears of abkari revenue take precedence over a prior hypothecation debt as a Crown-debt. The court delved into historical context, highlighting that the East India Company, as a corporation with limited sovereignty powers, was not accorded priority over mortgagees in the mufassal areas. The judgment cited precedents and compared the treatment of Crown-debts in England versus India. It was noted that even in England, the Crown's lien only attached when the landowner became a debtor to the Crown. The court refrained from importing the English common law doctrine regarding Crown-debts into Indian jurisprudence, emphasizing the need to protect purchasers from unforeseen liabilities. Ultimately, the court set aside the decrees of the Lower Courts and decreed in favor of the claimant, with costs. In conclusion, the judgment meticulously analyzed the provisions of Madras Act II of 1864 and the historical treatment of Crown-debts in India, providing clarity on the priority of encumbrances on property sold for arrears of abkari revenue and the hierarchy of debts owed to the Crown.
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