IN THE HIGH COURT OF TELANGANA
K. LAKSHMAN, J.
Dharma Raju Pakalapati - Appellant
Vs.
Kapil Chits Kakatiya Private Limited - Respondent
Civil Revision Petition No.700 of 2025
Decided On : 07-03-2025
| Table of Content |
|---|
| 1. recovery of amounts under the chit fund act (Para 2 , 3) |
| 2. execution rules under cpc and chit fund act (Para 4 , 5 , 6) |
| 3. liability of co-sureties in contracts (Para 7 , 9) |
| 4. jurisdiction and execution options for decree holders (Para 8 , 10 , 11) |
| 5. execution court's obligation to follow legal principles (Para 12 , 13 , 14 , 16) |
| 6. conclusion and order of remand (Para 17) |
ORDER :
K. LAKSHMAN, J.
Heard Mr.Praveen Bonkuri, learned counsel for the petitioners and Mr.K.P.Vijay Kumar, learned counsel for respondent No.1.
2. Respondent No.1 has filed an application under Section 64 of the Chit Fund Act, 1982, against the petitioners and respondent Nos.2 to 4 herein for recovery of an amount of Rs.3,32,132/- along with interest at the rate of 18% per annum before the Deputy Registrar of Chits/District Registrar, Karimnagar, vide A.R.B.No.948 of 2020. Learned Chit Arbitrator passed an award dated 20.03.2023 holding that the petitioners and respondent Nos.2 to 4 are jointly and severally liable to pay the said amount.
3. Therefore, respondent No.1 has filed an execution petition vide E.P.No.363 of 2024 against the petitioners and respondent Nos.2 to 4 for execution of the said award. Vide impugned attachment orders all dated 20.12.2024, learned executing Court directed the Disbursing Officers of the petitioners and respondent No.2 to withhold an amount of Rs.4,20,356/-. Challenging the said orders, the petitioners filed the present Civil Revision Petition.
4. It is also relevant to extract Order - XXI, Rules - 11 (2), 48 and 48A of the CPC and the same are 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 servant of the Government or of a servant of a railway company or local authority or of a servant of a corporation engaged in any trade or industry which is established by a Central, Provincial or State Act, or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956)] the Court, whether the judgment- debtor or the disbursing officer is or is not within the local limits of the Court's jurisdiction, may order that the amount shall, subject to the provisions of section 60, be withheld from such salary or allowances either in one payment or by monthly installments as the Court may direct; and upon notice of the orde
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 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, and execution must consider proportionate recovery from all judgment debtors.
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