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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.LAKSHMAN
Palle Narender – Appellant
Versus
KAPIL Chits Kakatiya Pvt. Ltd – 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 01.10.2024 in E.P.No.277 of 2024 in ARB.No.746 of 2020 passed by the leaned Principal Junior Civil Judge at Karimnagar.
3. Respondent No.2 is the subscriber of the Chit with respondent No.1. Petitioner and Respondent Nos.3 to 6 are the guarantors to the said Chit Funds. Respondent No.1 has filed an application under Section 64 of the Chit Funds Act, 1982 (for short ‘the Act, 1982’) vide ARB.No.746 of 2020 before the Chit Arbitrator/ Deputy Registrar of Chits, Karimnagar, claiming an amount of Rs.9,64,856/- along with interest. Learned Chit Arbitrator has passed an award, dated 24.08.2023 holding that the petitioner and respondent Nos.2 to 6 are jointly and severally liable to pay the said amount i.e., Rs.9,64,856/- with interest @ 18% p.a. on the principal amount of Rs.7,74,830/- 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.277 of 2024 in ARB No.746 of 2020 un
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 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 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 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 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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