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2025 Supreme(Telangana) 332

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. LAKSHMAN, J.
Balusula Ramesh Babu - Appellant
Versus
Shriram Finance Limited - Respondent
Civil Revision Petition No.1633 Of 2025
Decided On : 02-05-2025

Advocates:
Advocate Appeared:
For the Appellant : RAJESH BATHULA
For the Respondent: N SRIKANTH GOUD

The decree holder can recover the awarded amount from any judgment debtor, including guarantors, as their liability is co-extensive with that of the principal debtor.

Headnote:(A) Constitution of India - Article 227 - Arbitration and Conciliation Act, 1996 - Section 23 - Execution of arbitration award - The petitioner challenges the attachment order issued by the Executing Court for recovery of the awarded amount from salary - The court held that the decree holder can recover the amount from any of the judgment debtors, including guarantors, as per the provisions of the Indian Contract Act. (Paras 3, 4, 10, 14)

(B) Indian Contract Act, 1872 - Sections 126, 128, 146 - Liability of surety - The liability of co-sureties is co-extensive with that of the principal debtor unless otherwise provided by the contract. (Paras 7, 10)

(C) Civil Procedure Code, 1908 - Order XXI Rules 11(2) and 48 - Execution of decree - The court emphasized the necessity of following proper procedures for execution and attachment of salary. (Paras 5, 15)

Facts of the case:
The petitioner challenges an attachment order for salary to recover an amount awarded in an arbitration case, where the petitioner and others were found jointly liable.

Findings of Court:
The Executing Court's order was upheld, allowing recovery from the petitioner as per the arbitration award.

Issues: The main issues were the legality of the attachment order and the procedure for execution against multiple judgment debtors.

Ratio Decidendi: The court ruled that the decree holder has the option to recover the awarded amount from any judgment debtor, emphasizing the co-extensive liability of sureties.

Result: Civil Revision Petition disposed of.

ORDER :

K. LAKSHMAN, J.

Heard learned counsel for the petitioner. Perused the record.

2. This Civil Revision Petition is filed under Article 227 of the Constitution of India, challenging the attachment order, dated 24.12.2024 in Arb.E.P.No.18 of 2023 in ARB.Case No.280 of 2022 passed by the leaned II Additional District Judge, Karimngar.

3. Respondent No.2 is the subscriber of the Chit. Petitioner and Respondent Nos.3 and 4 are the guarantors to the said Chit. When the dispute was referred to the Arbitrai Tribunal under section 23 of the Arbitration and Conciliation Act, 1996, learned Arbitrator has passed an award, dated 27.09.2022 holding that the petitioner and respondent Nos.2 to 4 are jointly and severally liable to pay an amount of Rs.6,51,762/- with interest @ 10% p.a. on the amount due from the date of filing of the petition i.e., 28.03.2022 till the date of award and @ 18% p.a. from the date of award to realization of the entire amount.

4. Thereafter, respondent No.1 has filed an execution petition vide E.P.No.18 of 2023 in ARB No.280 of 2022 under Order XXI Rule 48 of C.P.C for execution of the said award. Vide impugned salary attachment order, dated 24.12.2024, the Executing Court directed the Disbursing Officer of the petitioner/J.Dr.No.3 to withhold an amount of Rs.7,77,028/- from the salary of the petitioner and remit to the account of the aforesaid E.P. Challenging the said attachment order, the petitioner filed the present Civil Revision Petition contending that the Executing Court has issued similar attachment orders to other J.Drs and the same is illegal.

5. It is relevant to extract Order - XXI, Rules - 11 (2) and 48 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 verified by the applicant or by some other person proved to the satisfaction of the Court to be acquainted with the facts of the case, and shall contain in a tabular form the following particulars, namely-

(a) the number of the suit;

(b) the names of the parties;

(c) the date of the decree;

(d) whether any appeal has been preferred from the decree;

(e) whether any, and (if any) what, payment or other adjustment of the matter in controversy has been made between the parties subsequently to the decree;

(f) whether any, and (if any) what, previous applications have been made for the execution of the decree, the dates of such applications and their results;

(g) the amount with interest (if any) due upon the decree, or other relief granted thereby, together with particulars of any cross-decree, whether passed before or after the date of the decree sought to be executed;

(h) the amount of the costs (if any) awarded;

(i) the name of the person against whom execution of the decree is sought; and

(j) the mode in which the assistance of the Court is required whether-

(i) by the delivery of any property specifically decreed;

(ii) by the attachment, or by the attachment and sale, or by the sale without attachment, of any property;

(iii)by the arrest and detention in prison of any person;

(iv) by the appointment of a receiver;

(v) otherwise, as the nature of the relief granted may require.”

Order XXI Rule 48 of CPC-Attachment of salary or allowances of servant of the Government or railway company or local authority.- (1) Where the property to be attached is the salary or allowances of a servant of the Government or of a servant of a railway company or local authority or of a servant of a corporation engaged in any trade or industry which is established by a Central, Provincial or State Act, or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956)] the Court, whether the judgment-debtor or the disbursing officer is or is not within the local limits of the Court's jurisdiction, may order that the amount shall, subject to the provisions of section 60, be withheld from such salary or allowances either

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