Back
K. LAKSHMAN
Bethi Sagar Reddy – Appellant
Versus
Kapil Chits Kakatiya Private Ltd. – Respondent
ORDER :
Heard Sri Gudi Madhusudhan Reddy, learned counsel for the petitioner and Sri K.P.Vijay Kumar, learned counsel appearing for the 1st respondent/Chit Fund Company.
2. Perusal of the record would reveal that 2nd respondent is the subscriber of the subject chit with 1st respondent. He has participated in the auction on 31.10.2017 and become successful bidder. Respondents 3 to 7 stood as guarantors who are jointly and severally liable to pay the chit amount, if 2nd respondent fails to pay the same. According to the 1st respondent, 2nd respondent being the subscriber of the chit, failed to pay the said amount. Therefore, they have filed an application vide Arb.No.386 of 2021 under Section 64 of the Chit Fund Act, 1982. The Chit Arbitrator/Deputy Registrar of Chits, passed an Award dated 24.08.2023 fixing liability on the respondents 2 to 7 and the petitioner jointly and severally for recovery of an amount of Rs.15,49,494/- with interest at 18% p.a. on the principal amount of Rs.11,98,505/-. According to the 1st respondent, they have not paid the said amount. Therefore, it has filed execution petition vide E.P.No.71 of 2024. Vide order dated 20.04.2024, the Executing Court/learned I
The execution of arbitral awards must adhere to procedural requirements, ensuring proper notice and compliance with legal standards.
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 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.
The execution of an arbitral award must proportionately consider the liabilities of co-sureties and cannot impose total deductions from salaries.
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
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
