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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.LAKSHMAN
Jadi Lingaiah – Appellant
Versus
Brindavan Chits Karimnagar India Private Limited – Respondent
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 03.04.2025 in E.P.No.472 of 2023 in ARB.No.661 of 2017 passed by I Additional Junior Civil Judge at Karimnagar.
3. Respondent No.2 is the subscriber of respondent No.1 Chit Fund Company. Petitioner and Respondent Nos.3 to 6 are the guarantors to the said Chit. Respondent No.1 has filed an application under Section 64 of the Chit Funds Act, 1982 (for short ‘the Act, 1982’) vide ARB.No.661 of 2017 before the Chit Arbitrator/ Deputy Registrar of Chits, Karimnagar, claiming an amount of Rs.8,15,566/- along with interest. Learned Chit Arbitrator has passed an award, dated 07.03.2020 holding that the petitioner and respondent Nos.3 to 6 are jointly and severally liable to pay the said amount i.e., Rs.8,15,566/- with interest @ 18% p.a. on the principal amount of Rs.6,90,700/- from the date of filing of the dispute till the date of realization of the said amount.
4. Thereafter, respondent No.1 has filed an execution petition vide E.P.No.472 of 2023 in ARB No.661 of 2017 under Order
The liability of co-sureties is co-extensive with that of the principal debtor, allowing the decree holder to recover the awarded amount from any or all judgment debtors.
The liability of co-sureties is co-extensive with that of the principal debtor unless otherwise provided by contract, allowing the decree holder to recover from any or all judgment debtors.
The court upheld that salary attachment orders must comply with statutory provisions and cannot exceed the awarded amount from judgment debtors, emphasizing the co-extensive liability of sureties and....
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.
The executing court must adhere to prescribed statutory procedures in recovery actions, especially in avoiding double recovery from judgment debtors.
Decree-holders must adhere to the awarded amount in recovery proceedings against co-sureties under the Chit Fund and Contract Acts, prohibiting excess recovery.
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