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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.LAKSHMAN
Viskela Suresh – Appellant
Versus
Srinidhi Chits Hyderabad Pvt. Ltd – Respondent
ORDER :
K. LAKSHMAN, J.
Heard Mr.Sourabh Agarwal, learned counsel for the petitioners. Despite service of notice, there is no representation on behalf of respondent Nos.1 and 2.
2. This revision is filed under Section - 227 of the Constitution of India challenging the order dated 12.11.2024 passed in E.P. No.306 of 2024 in Arbitration Case ARB No.230 of 2023 by the Principal Junior Civil Judge at Karimnagar.
3. On the application filed by respondent No.1 vide Arbitration Case ARB No.230 of 2023, the Chit Arbitrator/Deputy Registrar of Chits, Warangal, had passed an award dated 29.04.2024 directing the petitioners herein and respondent No.2 to pay an amount of Rs.3,88,760/- along with interest @ 18% per annum on the principal amount of Rs.3,43,943/- from the date of filing the dispute till the date of realization jointly and severally. They shall also pay Rs.9,780/- towards costs of the arbitration proceedings.
4. Pursuant to the said award, respondent No.1 herein had filed an execution petition vide E.P. No.306 of 2024 in ARB No.230 of 2023 seeking execution of the said award against the petitioners herein and respondent No.2 for recovery of Rs.4,19,745/- from them. Vide the aforesaid o
The Executing Court must adhere to procedural requirements in execution proceedings, ensuring proper notice and opportunity for judgment debtors, particularly regarding the liability of sureties.
Execution of arbitration awards must adhere to procedural rules, ensuring fair treatment of all judgment debtors and allowing the decree holder options for recovery.
Decree-holders must adhere to the awarded amount in recovery proceedings against co-sureties under the Chit Fund and Contract Acts, prohibiting excess recovery.
The execution of an arbitral award must proportionately consider the liabilities of co-sureties and cannot impose total deductions from salaries.
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.
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