IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. LAKSHMAN, J.
Avanoori Varaprasad – Petitioner
Versus
Ganipisetti Venkateshwar Rao – Respondent
Civil Revision Petition Nos. 1832, 2141 of 2024
Decided On : 18-09-2024
(A) Code of Civil Procedure, 1908 – Order XXI, Rules 11A, 37 to 41 – Execution of decrees – The decree-holder filed an execution petition for arrest of judgment-debtors for non-payment of a decretal amount of Rs.65,16,588/- – The Executing Court found that the judgment-debtors had means to pay and were intentionally evading payment – The court emphasized that the burden lies on the decree-holder to prove the judgment-debtor's means and negligence in discharging the decretal amount. (Paras 12, 25, 30)
Facts of the case: The decree-holder sought execution of a decree for recovery of Rs.65,16,588/- against judgment-debtors who failed to pay despite having sufficient means. The judgment-debtors contended they were unable to pay due to various ailments and pending appeals. (Paras 4, 10)
Findings of Court: The Executing Court found that the judgment-debtors had sufficient movable and immovable properties and were willfully disobeying the decree. (Paras 25, 27)
Issues: The main issues were whether the judgment-debtors had the means to pay the decretal amount and whether the Executing Court followed the proper procedure for arrest. (Paras 12, 30)
Ratio Decidendi: The court ruled that the decree-holder must demonstrate the judgment-debtor's means and negligence, and that the Executing Court must follow the prescribed procedures before ordering detention. (Paras 26, 30)
Result: Both Civil Revision Petitions dismissed, confirming the order of the Executing Court. (Paras 31)
ORDER :
1. Heard Mr. Anirudh, learned counsel representing Mr. Boosa Shivachandra, learned counsel for the petitioner in C.R.P. No. 1832 of 2024, Mr. Gummala Bhasker Reddy, learned counsel for the petitioners in C.R.P. No. 2141 of 2024 and Mr. Gudiseva Narasimha Rao, learned counsel for respondent No. 1. Respondent Nos. 2 to 13 are not necessary parties as per the cause title in C.R.P. No. 2141 of 2024.
2. C.R.P. No. 1832 of 2024 is filed by the petitioner-judgment/debtor No. 4 in E.P. No. 102 of 2020 challenging the order dated 30.04.2024 passed by learned Principal District Judge, Karimnagar in E.P. No. 102 of 2020. Challenging the very same order, judgment/debtor Nos. 2, 3, 6, 14 and 16 filed C.R.P. No. 2141 of 2024.
3. The petitioners in both the revisions are arrayed as judgment-debtor Nos. 2, 3, 4, 6, 14 and 16, respectively, while respondent No. 1 is the decree-holder in E.P. No. 102 of 2020. For the sake of convenience, the parties herein are hereinafter referred to as they were arrayed in E.P. No. 102 of 2020.
4. Originally, the decree-holder filed a suit vide O.S. No. 144 of 2015 against the judgment-debtors including the petitioners herein, for recovery of Rs.65,16,588/- along with future interest @ 12% per annum on the principal amount of Rs.54,76,125/- and costs arising out of sale of cotton crop to judgment-debtor No. 1 cotton industry. Vide judgment and decree, dated 23.08.2019, learned District Judge, Karimangar, decreed the suit for Rs.65,16,588/- with future interest @ 6% per annum on the aforesaid principal amount from the date of suit till the date of realization, however, dismissed the counter claim made by judgment-debtor No. 1.
5. As the judgment-debtors failed to pay the decretal amount, the decree-holder filed an execution petition vide E.P. No. 102 of 2020 against judgment-debtor Nos. 2, 3, 4, 6, 7, 11, 14 and 16 under Order-XXI, Rules-11A, 37, 38, 39 and 40 of CPC seeking arrest and detention of judgment-debtor Nos. 3, 4, 6, 7, 11, 14 and 16. The decree-holder contended that the aforesaid judgment debtors are rich enough and having sufficient properties/means to pay the decretal amount, but are intentionally evading payment of decretal amount and, therefore, sought to order for arrest and detention in civil prison as per law and after due enquiry in case they fail to pay the decretal amount as per Section-55, Order-XXI, Rule 11-A read with Rules 37 to 40 of CPC.
6. The judgment-debtor Nos. 2, 3, 6, 7, 14 and 16 filed counter opposing the said execution petition contending that the decree-holder did not file any evidence to prove their income. Judgment-debtor No. 4 specifically pleaded that judgment-debtor No. 1 industry, M/s. Kamakshi Cotton Industries, was a partnership firm. During pendency of O.S. No. 144 of 2015, the said firm was dissolved and the properties owned by the firm including the industry, sheds, machinery and other structures with land covered by it were sold to third parties. As against the judgment and decree dated 23.08.2019 in O.S. No. 144 of 2015, the judgment-debtors preferred an appeal vide A.S. No. 4 of 2021 before this Court and the same is pending. Judgment-debtor No. 11 died and judgment-debtor No. 4 is not having any properties and he is suffering from colon cancer. Therefore, they cannot be sent for civil prison.
7. During course of inquiry, the decree-holder examined himself as PW-1 and got marked Exs.A1 to A5, whereas, judgment/debtor Nos. 4, 2, 3, 6, 16 and 14 were examined themselves as RWs.1 to 6, respectively.
8. After hearing both sides and on perusal of entire evidence, both oral and documentary, vide order, dated 30.04.2024, learned Principal District Judge rejected the plea of the said judgment-debtors and accordingly issued warrant against judgment-debtor Nos. 2, 3, 4, 6, 7, 14 and 16 on deposit of subsistence allowance tentatively for five (05) days.
9. Challenging the said order, dated 30.03.2024, judgment/debtor No. 4 and judgment-debtor Nos. 2, 3, 6, 14 and 16 filed
The burden lies on the decree-holder to prove that the judgment-debtor has the means to pay the decretal amount and is willfully evading payment, following the procedures laid out in the CPC.
Arrest of a judgment-debtor for non-payment requires evidence of bad faith or willful neglect, and other execution methods must be considered first.
Arrest of a judgment-debtor in civil proceedings requires strict adherence to procedural safeguards and evidence of willful neglect to pay.
Provisions under Section 51 C.P.C. read with Rule 37 of Order and (sic. are) concerned in the interest of the protection of the liberty and freedom of the J. Dr. which the Code considers to be of par....
Arrest warrants against judgment debtors cannot be issued without exhausting property execution options as mandated by CPC; reasoned orders are essential in judicial decisions.
The issuance of an arrest warrant against a judgment debtor must follow due process, including a proper application stating grounds for arrest, as mandated by relevant CPC provisions.
Amendments to execution petitions may correct defects; simultaneous execution against debtor's person and property allowed under judicial discretion per CPC.
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