IMPORTANT POINT
The execution of an arbitral award must proportionately consider the liabilities of co-sureties and cannot impose total deductions from salaries.

ORDER :

1. Heard Mr. Papaiah Peddakula, learned counsel for the petitioners and Mr. N. Srikanth Goud, learned counsel for respondent No. 1. As per cause title, respondent No. 6 is not necessary party, while respondent Nos. 2 to 5 are only the Disbursing Officers of the petitioners and notices to them are dispensed with.

2. This revision is filed under Section-115 of the CPC challenging the order of attachment dated 21.03.2024 passed by learned Principal Junior Civil Judge, Karimnagar in E.P. No. 60 of 2024 in ARB No. 899 of 2021.

3. On the application filed by respondent No. 1, the Arbitrator/Deputy Registrar of Chits, Karimnagar, had passed an award dated 24.03.2023 for an amount of Rs.18,30,173/- with interest @ 18% per annum on the principal amount of Rs.15,91,020/- against the petitioners herein and respondent No. 6 herein ARB No. 899 of 2021. He has also held that respondent No. 1 herein shall recover the said amount by way of sale of movable and immovable properties belonging to them or by attachment of salaries or by any other mode of execution as per law.

4. Respondent No. 1 herein had filed an execution petition vide E.P. No. 60 of 2024 in ARB No. 899 of 2021 seeking execution of the said award against judgment debtor Nos.1 to 6 for recovery of Rs.23,79,794/- from them. Vide order dated 21.03.2024, learned Principal Junior Civil Judge, Karimnagar, directed the Disbursing Officers of the petitioners to withhold the amount of Rs.23,79,794/- each from the monthly salary of the petitioners herein. They are judgment debtor Nos.2 to 5 in the said E.P. as per Section - 60 of CPC after deducting standard deduction plus 1/3rd and 2/3rd of remaining gross salary and shall remit the balance 1/3rd of salary every month from the date of receipt of the warrant. The amount may be sent by D.D. or M.O.

5. The Executing Court should have directed the Disbursing Officers of judgment debtor Nos. 2 to 5 to deduct and recover the said amount of Rs.23,79,794/- proportionately from their salaries instead of directing to deduct the total amount from their salaries each. In fact, the aforesaid execution petition was filed by respondent No. 1-decree-holder to execute the award for Rs.23,79,794/- from judgment debtor Nos. 2 to 5.

6. It is relevant to note that Section - 36 of the Arbitration and Conciliation Act, 1996 deals with ‘enforcement of award’ and the same is relevant for the purpose of considering the lis in the present revisions and it is extracted below:

“Section 36: Enforcement - Where the time for making an application to set aside the arbitral Award under section 34 has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the Court.

(2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose.

(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing:

Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).”

7. It is also relevant to extract Order - XXI, Rules - 11 (2), 48 and 48A of the CPC and the same is as under:

“XXI Rule 11 (2) of CPC - Written application - Save as otherwise provided by sub-rule (1), every application for the execution of a decree shall be in writing, signed and verifie