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IN THE HIGH COURT OF TELANGANA
K.LAKSHMAN
Gudala Sagar – Appellant
Versus
Kapil Chits Kakatiya Private Limited – Respondent
ORDER :
K. LAKSHMAN, J.
Heard learned counsel for the petitioner. Perused the record.
2. Perusal of the record would reveal that respondent No.1 has filed an application under Section 64 of the CHIT FUNDS ACT , 1982 (for short ‘the Act, 1982’) vide ARB. No. 1029 of 2021 before the Chit Arbitrator/Deputy Registrar of Chits, Karimnagar, claiming an amount of Rs.4,64,528/- along with interest from the petitioner and respondent Nos.2 to 6. Respondent No.2 is the subscriber of the Chit with respondent No.1. Petitioner and respondent Nos.3 to 6 stood as guarantors to the said Chit Funds. 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.4,64,528/- with interest @ 18% p.a. on the principal amount of Rs.3,72,980/- from the date of filing of dispute to till the date of realization of the said amount.
3. Respondent No.1 had filed an execution petition in the terms of Order 21 Rule 48 of CPC vide E.P.No.114 of 2024 in ARB. No. 1029 of 2021 against the petitioner and respondent Nos.2 to 6 for recovery of the said amount. The said execution petition is pending.
4. The
The liability of co-sureties is co-extensive with that of the principal debtor, as established by the Indian Contract Act.
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 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.
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, and execution must consider proportionate recovery from all judgment debtors.
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