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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.LAKSHMAN
Shaik Fasiuddin – Appellant
Versus
Kapil Chits kakatiya Private Limited – Respondent
ORDER :
(K. LAKSHMAN, J.)
Heard Sri V. Yadu Krishna Sainath, learned counsel for the petitioner and Sri K.P.Vijay Kumar, learned counsel appearing for 1st respondent. Perused the record.
2. Respondent No.2 is subscriber of the chit maintained by respondent No.1 Company. The petitioner herein and respondent Nos.3 to 6 are sureties. Respondent No.2 failed in repaying the said chit amount. Therefore, 1st respondent has filed an application under Section 64 of Chit Fund Act, 1982 before the Chit Arbitrator/Deputy Registrar of Chits vide AR.B.No.371 of 2021 for recovery of an amount of Rs.6,05,462/- along with interest @ 18% per annum on the principle amount of Rs.5,03,422/- till the date of realization of the said amount and cost of the litigation from the petitioner and respondent Nos.2 to 6. Learned Chit Arbitrator has passed an award dated 20.06.2023 holding that both the petitioner and respondent Nos.2 to 6 are jointly and severally liable to pay the said amount. Since they failed to pay the said amount, 1st respondent has filed an Execution Petition vide E.P.No.4 of 2024 for execution of the said award and realization of the said amount against judgment debtor Nos.3,4, 5 and 6 incl
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 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 liability of co-sureties is co-extensive with that of the principal debtor unless otherwise stated, and execution procedures must adhere to statutory requirements and prior legal precedents.
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 procedural requirements in execution proceedings, ensuring proper notice and opportunity for judgment debtors, particularly regarding the liability of sureties.
The executing court must adhere to prescribed statutory procedures in recovery actions, especially in avoiding double recovery from judgment debtors.
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