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K. LAKSHMAN
Srirarnula Suresh – Appellant
Versus
Vijay Chit Funds Karimnagar Pvt. Ltd. – Respondent
ORDER :
1. Heard Sri Vadlakonda Ravi Kumar Reddy, learned counsel for the petitioner, Sri G. Vasantharayudu, learned counsel for the respondent No. 1 and respondent Nos. 2 to 7 are not necessary parties.
2. 1st respondent has filed an application under Section 64 of the Chit Fund Act, 1992 against the petitioner, respondents 2 to 7 herein for recovery of an amount of Rs.12,33,000/-. Learned Deputy Registrar of Chits, Karimnagar, passed an Award in ARC No. 467/2020, dated 23.03.2021 holding that the petitioner, respondents 2 to 7 are jointly and severally liable to pay an amount of Rs.12,33,000/- with interest at 18% p.a. on the principal amount of Rs.11,00,000/- from the date of filing of dispute till realization of the said amount. The said decretal amount is not paid. Therefore, 1st respondent has filed E.P. No. 186 of 2021 in ARC No. 467 of 2020 to realize the said amount from respondent Nos. 2 to 6 including the petitioner herein. Learned Executing Court vide impugned attachment order dated 08.10.2021 ordered for recovery of an amount of Rs.14,43,574/- each.
3. As discussed supra, vide aforesaid Award dated 23.03.2021, learned Deputy Registrar of Chits, Karimnagar, held that both
The liability of co-sureties is co-extensive with that of the principal debtor, and execution must consider proportionate recovery from all judgment debtors.
The execution of arbitral awards must adhere to procedural requirements, ensuring proper notice and compliance with legal standards.
The execution of an arbitral award must proportionately consider the liabilities of co-sureties and cannot impose total deductions from salaries.
The liability of co-sureties is co-extensive with that of the principal debtor unless otherwise stated, and execution procedures must adhere to statutory requirements and prior legal precedents.
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