JUDGMENT : P.C. Naik, J. - In this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for quashing the order dated 26.2.1992 (Annexure-1) passed by Opp. Party No. 2 attaching the Bank Account of the Petitioner company towards payment of arrear taxes of the erstwhile Bhaskar Textile Mills. 2. The Bhaskar Textile Mills was a private industry, which on account of mis-management had to be closed down. In order to reopen the mill and for rehabilitation of the workers, the State Legislature enacted Bhaskar Textile Mills (Acquisition and Transfer) Act, 1986 (Act 4 of 1988) hereinafter referred to as "The Acquisition Act" providing for acquisition and transfer of the Bhaskar Textile Mills Ltd., Jharsuguda. This Act received the assent of the President on 7th March 1986 and, by virtue of Sub-section (2) of Section 1, came into effect retrospectively from 13th August, 1985. Sub-section (1) of Section 3 of the Act provides for right of the owner in respect of the textile undertaking, is terms whereof, the right, title and interest of the owner in relation to the textile undertaking stood transferred and vested absolutely in the State Government. By Sub-section (2) of Section 3, the undertaking which stood vested in the State Government in terms of Sub-section (1) stood transferred to and vested in the Orissa State Textile Corporation Ltd., from the appointed day i.e. 13th August, 1985. This position is not disputed. 3. It appears that on the date of vesting, the erstwhile Bhaskar Textile Mills was in arrear of liability of a sum of Rs. 14,89,976/- under the Orissa Sales Tax Act and Central Sales Tax Act. This was sought to be recovered from the petitioner after it stood vested in the Government and thereafter from the Corporation which demand was objected to. Therefore, the impugned action i.e. attachment of Bank account folio, has brought the petitioner to this Court and the main contention of the learned counsel for the petitioner is that in view of the provisions contained in Section 5 of the Act, the liability for any person prior to the date of vesting i.e. 13.8.1985 could not be fastened on the petitioner. On the other hand, the contention of the learned counsel for the Revenue is that in view of provisions contained in Sections 13 and 19 of the Orissa Sales Tax Act, 1947 (in short, O.S.T. Act), it is justified in calling upon the petitioner to clear the outstanding tax liability of the erstwhile Bhaskar Textile Mills. 4. Before proceeding further, it is necessary to make a brief reference to some of the provisions contained in the Acquisition Act. These are : "4.(1) The textile undertaking referred to in Section 3 shall be deemed to include all assets, rights, lease holds, powers, authorities and privileges and all property, movable and immovable including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balance, cash in hand, reserve funds, investments and all other rights and interest in, or arising out of such property, as were immediately before the appointed day in the ownership, possession, power or control of the owner of the textile undertaking, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto. xx xx xx 5(1) Every liability of the owner of the textile undertaking in respect of any period prior to the appointed day shall be the liability of such owner and shall be enforceable against it and not against the State Government or the Corporation. xx xx xx 7(1) For the transfer to and vesting in the State Government under Sub-section (1) of Section 3 of the textile undertaking and the right, title and interest of the owner in relation to such textile undertaking, there shall be given by the State Government to the owner in cash the amount determined as specified in Chapter - V, in the manner specified in Chapter - VI. (2) Where any liability of the owner specified in the Schedule is discharged by the State Government according to the order of the priorities mentioned in the Schedule, the amount to be paid to the owner under Sub-section (1) shall stand reduced to that extent. xx xx xx 17. (2) Where any liability of the owner specified in the Schedule is discharged by the State Government according to the order of the priorities mentioned in the Schedule, the amount to be paid to the owner under Sub-section (1) shall stand reduced to that extent. xx xx xx 17. Every person having a claim against the owner of the Textile undertaking shall prefer such claim before the Commissioner within thirty days from the specified date : Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days but not thereafter. 18. The claims arising out of the matters specified in the Schedule shall have priorities in accordance with the following principles, namely : (a) category-I shall have precedence over all other categories and category-II shall have precedence over category-III and so on; (b) the claims specified in each category except category-III shall rank equally and be paid in full, but the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; (c) the liabilities specified in category-III shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loan and the priorities inter se, of such loans; and (d) the question of payment of liability with regard to a matter specified in a succeeding category shall arise if a surplus is left after meeting all the liabilities specified in the immediately preceding category. 19(1). On receipt of the claims u/s 17, the Commissioner shall arrange the claims in the order of priority specified in the schedule and examine the same in accordance with the said order. xx xx xx 24. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act or in any decree or order of any Court, tribunal or authority. xx xx xx THE SCHEDULE (See Sections 18, 19 and 20) Order of priority for the discharge of liabilities in respect of the textile undertaking. xx xx xx THE SCHEDULE (See Sections 18, 19 and 20) Order of priority for the discharge of liabilities in respect of the textile undertaking. CATEGORY - I All dues including arrear salaries, wages, leave and other dues and gratuity of persons employed in the textile undertaking relating to the period prior to the appointed day. CATEGORY - II Loans inclusive of interest advanced by the Central and the State Government and any bank prior to the appointed day. CATEGORY - III Dues of secured creditors including banks and institutions pertaining to the period prior to the appointed day. CATEGORY - IV (i) Statutory dues of Government pertaining to the period prior to the appointed day. (ii) Sundry creditors of the period prior to the appointed day. (iii) Other liabilities." 5. It may also be worthwhile to quote the provisions contained in Sections - 13 and 19 of the O.S.T. Act which read thus : 13-B. Tax to be first charge on property - Notwithstanding anything to the contrary contained in any law for the time being in force any amount payable by a dealer under this Act on account of tax, penalty or interest or any amount which a person is required to pay under Sub-section (1) of Section 13-A or for which he is personally liable to the State Government under Sub-section (4) of the said Section (or any amount which a person is required to deduct and deposit into the Government Treasury under the provisions of Section 13-AA) shall be a first charge on the property of the dealer or such person, as the case may be). 19. Tax payable by transferee of business - (1) When the ownership of the business of a dealer liable to pay tax under this Act is entirely transferred any tax payable, in respect of the business till the date of the transfer and remaining unpaid at the time of transfer, shall, without prejudice to any action that may be taken for its recovery from the transferor, be payable by the transferee as if he were a dealer liable under this Act for such tax and the transferee shall be liable to pay tax on the sales made by him on and from the date, of such transfer and shall within thirty days of the transfer apply for registration under this Act, unless he is already registered. Explanation -- When a dealer carries on business in the same premises substantially in the same goods in succession to a dealer liable under this Act, it shall be presumed that there has been an entire transfer of the business notwithstanding any change in the constitution, style or name of the business unless the contrary is proved by the dealer succeeding to the business." 6. A combined reading of Sections 4 and 5 of the Acquisition Act clearly envisage that a textile undertaking deemed to include all assets, rights, lease holds, powers, authorities and privileges and all property, movable and immovable, investments and all other rights and interest in or arising out of such property which immediately before the appointed day were in the ownership, possession, power or control of the owner of the textile undertaking. On the other hand, every liability of the owner of the textile undertaking in respect of any period prior to the appointed day were the liability of such owner and should not be enforced either against the State Government or the Corporation. It is further provided that save as otherwise expressly provided in this section or in any other section of this Act, liability in relation to the textile undertaking for any period prior to the date of vesting should be enforced against the State Government or the Corporation. In other words, the liability incurred by the erstwhile industry remains the liability of the erstwhile owner irrespective of the vesting. Admittedly what is due to the Revenue towards arrear of tax is a sum of Rs. 27,018=00 for the period 1980-81. (O.S.T.) Act, Rs. 58,593=00 for the period 1982-83 against O.S.T. Act and a sum of Rs. 14,04,365/- for the period 1982-83 under C.S.T. Act. These dues raised by demands under both Central as well as State Act were for the period prior to the date of vesting which is 13.8.1985 and as such the liability in terms of Section 5 of the Act 4 of 1986 remains the liability of the owner. 7. It is no doubt true that u/s 19 of the O.S.T. Act, when the business of a dealer is transferred, the revenue can proceed against the transferee of the business to recover the tax liability of the transferor. 7. It is no doubt true that u/s 19 of the O.S.T. Act, when the business of a dealer is transferred, the revenue can proceed against the transferee of the business to recover the tax liability of the transferor. But, this general power u/s 19, in the instant case, has to be considered in the light of the provisions contained in the Special enactment, namely, the Acquisition Act, which as observed earlier, has received assent of the President and being a Special Act, it will over-ride the general provisions in other statute. Section 24 of the Acquisition Act itself provides that the provisions of this Act shall override all other enactment (necessarily) in force in the State. In other words, after the Textile Mill stood vested under the Acquisition Act, its right and liabilities will have to be determined in accordance with the provisions contained in the Acquisition Act which is, as mentioned above, a Special statute. Accordingly, the liability of the petitioner in respect of the liabilities incurred by the erstwhile owner prior to the date of vesting will be determined in accordance with the provisions contained in the Acquisition Act as it clear from Sub-section (1) of Section 5 of the Acquisition Act. It accordingly follows that the provisions of the Acquisition Act shall override the provisions contained in Section 19 of the O.S.T. Act. 8. However, we should not be understood to mean that under no circumstances the statutory dues payable by the erstwhile owner up to the date of vesting cannot be recovered from the petitioner, for this will be contrary to the provisions contained in the Acquisition Act itself. The said Act provides for appointment of a Commissioner of payments who can be approached by any person having a claim against the owner of the Textile undertaking up to the date of vesting. Section 18 of the Acquisition Act provides the manner in which different claims specified in the schedule shall be considered. In other words, it lays down categories of claims on priority and precedence basis against the erstwhile owner. Various liabilities have been grouped under four categories and the import of Section 18 is that the claims falling under, category-I shall have precedence overall other categories and claims failing under category-II shall have precedence over category-Ill and so on. In other words, it lays down categories of claims on priority and precedence basis against the erstwhile owner. Various liabilities have been grouped under four categories and the import of Section 18 is that the claims falling under, category-I shall have precedence overall other categories and claims failing under category-II shall have precedence over category-Ill and so on. This section which has been quoted in extenso in the earlier paragraphs provides that the statutory dues of the Government pertaining to the period prior to the appointed day, i.e. prior to the date of vesting, fall within Clause - I of category No. IV and in terms of Section 18, may be realised from the petitioner only after all outstanding liabilities against the erstwhile owner failing under categories I, II and III are satisfied. In other words, if after satisfying the liabilities under categories I, II and III some amount still remains and which is payable to the owner in terms of Sub-section (1) of Section 2, only then the statutory dues pertaining to the period prior to the appointed date, not exceeding the balance due to the erstwhile owner, can be recovered from the petitioner. This follows from a reading of Sub-sections (1) and (2) of Section 7 of the Acquisition Act. 9. In view of the aforesaid discussions, it follows that the impugned order of attachment issued u/s 13-A(i) of the O.S.T. Act (Annexure-1) cannot be sustained and is, accordingly,m quashed. 10. In the result, the writ application is allowed but, in the circumstances, without any order as to costs. P.K. Mohanty, J. 11. I agree. Final Result : Allowed