1. Execution proceedings for the arrest and detention of a judgment debtor following failure to satisfy a monetary decree despite alleged ownership of assets and income sources. (Para 2 , 3 , 4 )
Back
Next 
2025 Supreme(Telangana) 2241
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Arudra Satyanarayana – Appellant
Versus
Guntuku Ramchander – Respondent
Civil Revision Petition No. 938 of 2025
Decided On : 25-09-2025
Advocates Appeared:
For the Appellant : Rama Sharana Sharma
For the Respondent: P. Ravi Kiran
For the Appellant : Rama Sharana Sharma
For the Respondent: P. Ravi Kiran
Important Points
Arrest and detention of a judgment debtor under Order XXI Rules 37 & 38 of the CPC is justified when evidence of lifestyle, property holdings, and organizational roles establishes they have sufficient means but are willfully avoiding payment of the decreetal debt.
Subject
Civil Law - Execution Proceedings
Act Referred
Headnote
(A) Code of Civil Procedure, 1908 - Order XXI Rules 37 & 38 - Execution of decree - Arrest and detention of judgment debtor - Assessment of means to pay decreetal debt - Evidence of lifestyle, memberships in organizations, and property ownership used to determine financial capacity - Where evidence reveals the judgment debtor holds significant positions and possesses properties, an order for arrest and detention for wilful avoidance of payment is sustainable (Paras 7, 10, 11).
(B) Civil Revision Petition - Scope - Court is to determine if there is any illegality, impropriety, or irregularity in the order of the executing court - Once the court below appreciates evidence and arrives at a finding of sufficient means, the same shall not be interfered with in the absence of such vices (Para 11).
Facts of the case:
A decree holder filed an execution petition seeking the arrest of the judgment debtor for non-payment of a decreetal debt of approximately ten lakh rupees. The judgment debtor denied having any movable or immovable assets and cited medical ailments. However, testimony and documents, including an encumbrance certificate and evidence of the debtor's leadership roles in social and political organizations, established the debtor's financial capacity and property ownership.
Findings of Court:
The executing court, after appreciating oral and documentary evidence, found that the judgment debtor had sufficient means to pay the decreetal debt but was willfully and wantonly avoiding its discharge. Accordingly, the court ordered the debtor's arrest and detention in civil prison for two months or until the debt is paid.
Issues: Whether the executing court's order directing the arrest and detention of the judgment debtor was based on a correct appreciation of evidence concerning his financial means and whether there was any illegality in said order.
Ratio Decidendi: The court held that admissions regarding leadership roles in organizations, involvement in business, and evidence of property ownership prove the existence of sufficient means to satisfy the decree. Consequently, the refusal to pay constitutes willful avoidance, justifying the order for detention under the Code of Civil Procedure. No illegality or irregularity was found in the lower court's appreciation of evidence.
Result: Civil Revision Petition is dismissed.
(B) Civil Revision Petition - Scope - Court is to determine if there is any illegality, impropriety, or irregularity in the order of the executing court - Once the court below appreciates evidence and arrives at a finding of sufficient means, the same shall not be interfered with in the absence of such vices (Para 11).
Facts of the case:
A decree holder filed an execution petition seeking the arrest of the judgment debtor for non-payment of a decreetal debt of approximately ten lakh rupees. The judgment debtor denied having any movable or immovable assets and cited medical ailments. However, testimony and documents, including an encumbrance certificate and evidence of the debtor's leadership roles in social and political organizations, established the debtor's financial capacity and property ownership.
Findings of Court:
The executing court, after appreciating oral and documentary evidence, found that the judgment debtor had sufficient means to pay the decreetal debt but was willfully and wantonly avoiding its discharge. Accordingly, the court ordered the debtor's arrest and detention in civil prison for two months or until the debt is paid.
Issues: Whether the executing court's order directing the arrest and detention of the judgment debtor was based on a correct appreciation of evidence concerning his financial means and whether there was any illegality in said order.
Ratio Decidendi: The court held that admissions regarding leadership roles in organizations, involvement in business, and evidence of property ownership prove the existence of sufficient means to satisfy the decree. Consequently, the refusal to pay constitutes willful avoidance, justifying the order for detention under the Code of Civil Procedure. No illegality or irregularity was found in the lower court's appreciation of evidence.
Result: Civil Revision Petition is dismissed.
Legal Category Hierarchy
Table of Contents
2. The decree holder alleged willful avoidance of payment despite the debtor's means, while the debtor denied asset ownership, claiming indigency and medical ailments as reasons for non-payment. (Para 4 , 5 , 8 , 9 )
3. The court assessed the debtor’s lifestyle, social positions in professional organizations, property encumbrance records, and income sources to evaluate the ability to pay the decretal debt. (Para 9 , 10 )
4. A judgment debtor failing to discharge a debt, despite possessing clear financial means and holding significant social statuses, may be ordered for arrest and detention under execution proceedings. (Para 7 , 10 )
5. The court dismissed the revision petition, confirming the legality and propriety of the executing court’s order for arrest and detention of the debtor. (Para 11 )
6. Does civil arrest in execution proceedings require the debtor to have current means to pay?
Yes, to warrant arrest and detention under Order-XXI Rules-37 and 38 CPC, the executing court must be satisfied that the judgment debtor has, or has had since the date of the decree, the means to pay the decretal amount and has refused or neglected to pay. (Para 3 , 4 , 7 , 11 )
7. Can information regarding a debtor's social status and leadership positions be used to determine financial capacity?
Yes, evidence showing holding high-ranking offices, membership in prominent organizations, and public admissions of expenditure or income acts as indicators of the debtor’s financial capacity to satisfy a debt. (Para 9 , 10 )
ORDER :
1. Heard Sri P.Rama Sharana Sharma, learned counsel appearing on behalf of the petitioner and Sri P.Ravi Kiran, learned counsel appearing on behalf of respondent.
2. The petitioner filed the Civil Revision Petition seeking the prayer as under:
“….pleased to set aside the impugned order in EP No.63 of 2023 in O.S.No.21 of 2019, dated 05.03.2025, on the file of Hon’ble Principal Senior Civil Judge at Kothagudem, Bhadradri Kothagudem District in the interest of justice and pass such other and further orders…”
3. This Civil Revision Petition by Judgment Debtor/Defendant is filed against the order, dated 05.03.2025 in E.P.No.63 of 2023 in O.S.No.21 of 2019 on the file of the Principal Senior Civil Judge at Kothagudem, Bhadradri Kothagudem District, whereby and whereunder the execution petition filed by the Decree Holders/Plaintiff under Order-XXI Rules-37 & 38 of Civil Procedure Code of 1908 is allowed and the judgment Debtor/ Defendant is ordered to be arrested and detained in Civil Prison for a period of two (02) months or till the payment of the Decreetal debt is made, whichever is earlier.
4. The Decree holder/plaintiff filed the execution petition seeking arrest of the judgment debtor under Order-XXI Rules-37 & 38 of Code of Civil Procedure, 1908 alleging that the judgment debtor had not paid the E.P. amount of Rupees Ten Lakhs Forty One Thousand Three hundred and Seventy Six (Rs.10,41,376/-) though, he has movable and immovable properties and doing business at Paloncha Town, Bhadradri Kothagudem District and that he is intentionally avoiding to pay the Decreetal debt.
5. The judgment debtor filed counter denying that he has movable and immovable properties. He stated that the properties shown in the encumbrance certificate, dated 24.08.2023 filed by the Decree Holder are the properties belonging to his married daughter. He further stated that since, 2013 he had been suffering from Neuron problems, fits and other ailments.
6. The Decree Holder in support of his case examined himself as PW1 and one independent witness as PW2 and got marked two documents. The judgment debtor examined himself as RW1 and got marked RWs1 to RWs15 documents.
7. The executing Court after appreciating the oral and documentary evidence on record gave finding that the judgment debtor had sufficient means to pay the decreetal debt, but wilfully and wantonly is avoiding to discharge the debt and accordingly, ordered his arrest and detention in civil prison.
8. Seeking aggrieved by the order, the judgment debtor filed the present Revision Petition, PW1 deposed that the judgment debtor is doing Carpenter business and thereby, he earns Rs.2,00,000/- per month and that by doing real- estate business, the Judgment debtor earns Rs.5,00,000/- per month.
9. Exhibit P2 is the Lions Club International Book showing the membership of the Judgment debtor. Contra to the above evidence of PW1, RW1 says that he is unemployed and has no earnings and that he underwent Surgery for his fractures sustained by him in four accidents and that he suffered brain stroke. He also says that he is not doing any kind of business and that he does not own any movable or immovable properties and therefore, has no means to discharge the debt. I n cross examination, he says that he has been residing in the house bearing door No.30-1-232/1, Vengal Rao Nagar Colony, Paloncha and admits that the photo shown to him pertains to that house, when asked, he admits that he is member of International Lions Club, Paloncha and that he is GST coordinator of that International Lions Club. He also admits that he worked as President, Regional Chairman, Zonal Chairman and District Chairman of Lions Cub and that he used to present the MGF Award by taking Rupees Two or three lakhs. He categorically admits that nearly Rs. 1 crore has to be spent for the post of Governor in Lions Club.
10. At a later stage of cross examination, he admits that he is leader of TRS Party. He voluntarily says that he is a Member of En
