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2025 Supreme(Telangana) 785

IN THE HIGH COURT OF TELANGANA
K. LAKSHMAN, J. 
Kanolla Shravan - Appellant
Vs.
M/s. Shriram Chits India Pvt. Ltd. - Respondent
Civil Revision Petition No.939 of 2025
Decided On : 21-03-2025

Advocates:
Advocate Appeared:
For the Appellant : C Sri Hari Prasad
For the Respondent: K S Sai Pavan

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 required execution procedures.

Headnote:(A) Civil Procedure Code, 1908 - Section 115; Chit Funds Act, 1982 - Sections 64, 71; Indian Contract Act, 1872 - Sections 126, 128, 146 - Challenge to salary attachment order - The executing Court issued an order to withhold salary for recovery of award amount, contradicting statutory provisions - Highlighted principles of joint and several liability of sureties and procedural requirements for execution - The court determined execution proceedings must adhere to prescribed legal standards, leading to setting aside of the attachment order. (Paras 3-15)

(B) Liability of Guarantors - The liability of a surety is co-extensive with that of the principal debtor unless otherwise provided. (Paras 8-11)

(C) Execution of Awards - The decree holder must make applications for execution in accordance with procedural law, and cannot recover more than the awarded amount from any judgment debtor. (Paras 13-14)

Table of Content
1. challenge to attachment order on execution of award. (Para 2 , 3 , 4)
2. relevant provisions and rules cited. (Para 5 , 7)
3. provisions for recovery under chit fund act. (Para 6 , 8)
4. authority of decree holder and execution processes. (Para 9 , 10 , 11 , 12 , 13)
5. implications of court observations regarding liability. (Para 14)
6. execution procedure violation in salary attachment. (Para 15 , 19)

ORDER :

K. Lakshman, J.

Heard learned counsel for the petitioner and Sri K.S.Sai Pavan, learned counsel for the respondent No.1. Perused the record.

2. This Civil Revision Petition is filed under Section 115 of C.P.C. challenging the attachment order, dated 07.11.2023 in E.P.No.322 of 2022 in ARB.No.1093 of 2021 passed by the IV Additional Junior Civil Judge (Excise) at Karimnagar.

3. Respondent No.3 is the subscriber of the Chit with respondent No.1. Petitioner and Respondent Nos.4 to 7 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.1093 of 2021 before the Chit Arbitrator/Deputy Registrar of Chits, Karimnagar, claiming an amount of Rs.15,46,682/- along with interest. Learned Chit Arbitrator has passed an award, dated 04.08.2022 holding that the petitioner and respondent Nos.3 to 7 are jointly and severally liable to pay the said amount i.e., Rs.15,46,682/- with interest @ 18% p.a. on the principal amount of Rs.13,99,260/- 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.322 of 2022 in ARB No.1093 of 2021 under Order XXI Rule 11 of C.P.C for execution of the said award. Vide impugned salary attachment order, dated 07.11.2023, the Executing Court directed the Salary Disbursement Officer of the petitioner/J.Dr.No.2 to withheld an amount of Rs.18,43,130/- from the salary of the petitioner and remit to the account of the aforesaid Execution Petition of the Executing Court. Challenging the said attachment order, the petitioner filed present Civil Revision Petition.

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 servan

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