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

2024 Supreme(Telangana) 1018

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Kunuru Lakshman, J.
Awari Amarender – Appellant
Vs.
Shriram City Union Finance, Karimnagar-I Branch and Ors. – Respondent
Civil Revision Petition No. 1616 of 2024
Decided On : 14-08-2024

Advocates:
Advocate Appeared:
For the Appellant : P. Venkanna
For the Respondents: N. Srikanth Goud

The decree holder can recover the decretal amount from any judgment debtor, jointly or severally, as per Section 128 of the Indian Contract Act, and the execution petition was maintainable before the District Judge.

Headnote:(A) Code of Civil Procedure, 1908 - Section 115 - Arbitration and Conciliation Act, 1996 - Section 36 - Execution of arbitral award - Revision against attachment order issued by District Judge - Petitioner contended that execution petition was improperly filed and attachment order was issued without following due procedure - Court held that decree holder can recover the amount from any judgment debtor, jointly or severally, as per Section 128 of the Indian Contract Act - Petitioner failed to establish grounds for interference with the attachment order. (Paras 2, 3, 15)

(B) Jurisdiction - The execution petition was maintainable before the District Judge as per the provisions of the Arbitration and Conciliation Act, 1996, and the petitioner’s contention regarding jurisdiction was unsustainable. (Paras 7, 15)

(C) Co-surety Liability - The liability of co-sureties is co-extensive with that of the principal debtor unless otherwise provided by contract, reaffirming the principle that the decree holder can proceed against any or all judgment debtors. (Paras 10, 15)

Facts of the case:
The petitioner challenged an attachment order for recovery of a decretal amount from his salary, arguing improper jurisdiction and procedure. The decree holder sought recovery based on an arbitral award.

Findings of Court:
The court found the execution petition maintainable and the attachment order valid, dismissing the revision petition.

Issues: The main issues were the jurisdiction of the executing court and the procedure followed in issuing the attachment order.

Ratio Decidendi: The court ruled that the decree holder can recover the amount from any judgment debtor, and the execution petition was properly filed before the District Judge.

Result: Revision petition dismissed.

ORDER :

Kunuru Lakshman, J.

1. Heard Mr. P. Venkanna, learned counsel for the petitioner and Mr. N. Srikanth Goud, learned counsel for respondent No. 1. It is mentioned in the cause title that respondent No. 2 is not necessary to the present revision.

2. This revision is filed under Section - 115 of the Code of Civil Procedure, 1908 (hereinafter referred to as 'CPC'), challenging the attachment order dated 21.03.2024 in ARB E.P. No. 410 of 2019 in ARB Case No. 600 of 2012 passed by learned II Additional District Judge at Karimnagar.

3. Respondent No. 1 filed an Arbitration Application vide ARB Case No. 600 of 2012 against the petitioner and respondent No. 2 herein. The Arbitrator passed an Award dated 27.04.2013 in ARB Case No. 600 of 2012 holding that the petitioner and respondent No. 2 herein are due and liable to pay an amount of Rs. 1,50,201/- along with interest @ 18% per annum thereon. The said amount is not paid. Therefore, respondent No. 1 herein has filed an execution petition under Section - 36 of the Arbitration and Conciliation Act, 1996 (for short 'Act, 1996') read with Order - XXI, Rule - 11 (2) of the CPC, vide E.P. No. 410 of 2019 in ARB Case No. 600 of 2012 against the petitioner herein - Judgment Debtor No. 2 alone, to recovery an amount of Rs. 3,36,889/-. Vide order dated 21.03.2024, learned II Additional District Judge, Karimnagar, issued order of attachment in Form No. 19 directing the Disbursing Officer of the petitioner to withhold an amount of Rs. 3,36,889/- from the salary of the petitioner and remit the same to the said Court. Challenging the said order, the petitioner herein filed the present revision on the following grounds:

    i. Execution Petition is filed for realization of Rs. 3,36,889/-, therefore, it has to be filed before the Junior Civil Judge, Karimnagar, which has pecuniary jurisdiction and not the District Judge. Therefore, learned II Additional District Judge, Karimnagar has no power to entertain the E.P. and pass order of attachment;

    ii. The impugned order of attachment was issued without following the procedure laid down under Order - XXI, Rule - 48 of the CPC;

    iii. Respondent No. 1 - Decree Holder cannot recovery entire decretal amount from the salary of the petitioner and it has to recovery proportionately from the petitioner and respondent No. 2 herein;

    iv. The Executing Court failed to consider compliance of Section - 31 (5) of the Act, 1996; and

    v. Without giving any opportunity, the Executing Court passed the impugned order.

4. On the other hand, learned counsel for respondent No. 1 would contend that as per the law, respondent No. 1 being the decree- holder can recover decretal amount either from the petitioner alone or from the judgment debtors proportionately. Therefore, respondent No. 1 has filed the above E.P. to realize the decretal amount from the petitioner - judgment debtor No. 2, and on consideration of the same only, learned Executing Court issued the order of attachment and there is no error in it.

5. In the light of the aforesaid rival contentions, it is apposite to extract Section - 2 (1) (e) of the Act, 1996 and the same is as under:

    "2 (1) (e) Court" means-

    (i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes."

6. In Potlabathuni Srikanth v. Shriram City Union Finance Limited, 2016 (2) ALD 10 (DB), a Division Bench of High Court for the States of Telangana and Andhra Pradesh at Hyderabad held that OP to be filed in District Court only and Court of Principal District Judge includes Additional District Judge.

7. Perusal of record would reveal that

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 Back to top