SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
judgment-img

2006 Supreme(AP) 694

G.V.SEETHAPATHY
G. Sudhakara Reddy – Appellant
Versus
Jahnavi Chit Fund Pvt. Ltd. – Respondent


Judgement Key Points

What is the correct approach under Section 51 CPC for arresting a judgment debtor when the decree is for money and the debtor claims no means to pay? What constitutes sufficient proof of "means to pay" to justify arrest of a judgment debtor under Order 21 Rule 37 CPC and Section 51 CPC? What are the consequences of proceeding against a single guarantor when other liable debtors exist, and is it permissible to arrest only one guarantor?

Key Points: - The decree-holder must establish to the satisfaction of the court that the judgment-debtor has means to pay and is refusing or neglecting to pay (!) . - The impugned order was set aside for presuming means and placing burden on the debtor to disprove without adequate evidence (!) . - The court emphasized that evidence must show the debtor owns means or property; mere allegation without documentary/overt evidence is insufficient (!) . - It is permissible for decree-holders to proceed against any judgment-debtor, including guarantors, but not to rely on unsubstantiated assertions about a debtor’s means (!) . - The decision affirmed that arrest/detention in prison as a mode of execution requires written reasons and proof of means since the decree is for money (!) . - The revision petition succeeded, and the impugned order arresting the 2nd judgment-debtor was unsustainable (!) . - The Civil Revision Petition was allowed, setting aside the order of arrest; no order as to costs (!) .

What is the correct approach under Section 51 CPC for arresting a judgment debtor when the decree is for money and the debtor claims no means to pay?

What constitutes sufficient proof of "means to pay" to justify arrest of a judgment debtor under Order 21 Rule 37 CPC and Section 51 CPC?

What are the consequences of proceeding against a single guarantor when other liable debtors exist, and is it permissible to arrest only one guarantor?


ORDER

This Civil Revision Petition is filed against the order dated 26-7-2005 in E.P. NO.27 of 2004 in O.S. No. 276 of 1997 on the file of II Additional Senior Civil Judge at Vijayawada, wherein the warrant of arrest was ordered against the revision petitioner-2nd judgment debtor. "

2. Heard the counsel for the revision petitioner. None appeared for the 1st respondent/decree-holder though served with the notice.

3. The first respondent/decree-holder filed the suit O.S. No.276 of 1997 and the same was decreed for an amount of Rs. 62,069/- and interest and costs. The 1st respondent filed E.P. No. 27 of 2004 for realization of total amount of Rs. 1 ,22,647/- under the decree. The revision petitioner/2nd judgment-debtor is one of the guarantors for the suit transaction for 2nd respondent herein, who was the principal borrower. The execution petition was filed seeking arrest of the principal debtor and guarantors under Order 21 Rule 37 CPC in a bid to realize the decretal amount. The revision petitioner/2nd judgment-debtor filed a counter before the execution court pleading that he has retired from seine and has been suffering with several ailments and he has no means to pay the decretal a





Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top