9911796707
TMI Blog1956 (9) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... to Govt. were concerned would remain unaffected as Section 44 of the Insolvency Act provides that an order of discharge shall not release the insolvent from any debt due to Government. The insolvent preferred an appeal to the District Judge and challenged the validity of Section 44 on the ground fhat it contravenes the provisions of Article 14 of the Constitution inasmuch as it has the effect of discriminating between different classes of creditors of the insolvent by according preferential treatment to Government over other creditors. The learned Judge is of the opinion that this case involves the decision of an important question of constitutional law and has referred this case to this Court under Section 113 and Order 46 of the Code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, having an understanding and a will, capable of possessing and acquiring rights and of directing and fulfilling obligations , the State in its political organisation is entirely different and distinct from the' inhabitants who, may happen to reside there. Similarly a Government cannot fall within the ambit of the expression 'person, for although in common parlance ''Government is synonymous with 'State', in actual fact the State is a country or assemblage of people while tho Government is the political agency through which it acts. It is true that the State is capable of suing and being sued but that is so not because the State is a person, but because Article 300 of the Constitution has made an ' express Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd police powers. The powers of taxation are usually exercised for the purpose of creating revenue; the powers of eminent domain for the purpose of taking private property for a public use and police powers for the purpose of promoting public welfare by restraining and regulating the use of liberty and property. Although the Indian Constitution does not recognise this threefold classification, there can be no doubt that the Provincial Insolvency Act has been enacted by the Provincial Legislature in exercise of powers analogous to police powers. The prerogative of the sovereign to preferential treatment over all other creditors has been recognised from early times for it is a well known maxim of law that where the king's and the subject& ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
