Court established the principle that recovery against a surety should be stayed when the principal debtor is granted a facility for installment repayment.

JUDGMENT

The limited relief sought for in this writ petition is for a direction to respondents 2 to 5 not to recover any amount from the salary of the petitioner pursuant to Ext.P7 prohibitory order.

2. Petitioner was a surety to the chity, subscribed by the 6^th respondent from the 5^th respondent. When the 6^th respondent defaulted repayment of the amount due under the chit transaction, proceedings were initiated against the 6^th respondent as well as the petitioner. As far as the petitioner is concerned, proceedings were initiated to recover money from his salary as per Ext.P11. In the meantime, the 6^th respondent approached this Court in W.P.(C) No.48449/2025, and by judgment dated 22.01.2026 produced as Ext.P12, this Court granted a facility for repayment in 20 equated monthly instalments commencing from 22.02.2026. It is specifically mentioned in the said judgment that in the event of default of any one instalment, respondents therein will be at liberty to initiate appropriate coercive proceedings. The petitioner being a surety seeks directions to prevent recovery from him.

3. I have heard the learned counsel for the petitioner, the learned Standing Counsel for the 5^th respondent as well as the learned Government Pleader.

4. It is evident from Ext.P12 judgment that the subscriber to the chit has been granted the benefit of repayment of total liability due as on 31.01.2026 in 20 equated monthly instalments. Since the subscriber to the chit, who is the principal debtor, has been given the benefit of repayment in instalments, the recovery proceedings against the petitioner ought not to be proceeded with.

Hence, respondents 1 to 5 are directed to keep the revenue recovery proceedings against the petitioner for the liability due from the 6^th respondent in abeyance for a period of 20 months from today. It is clarified that, if, in case the 6th respondent commits default in repayment, necessarily the 5^th respondent will be at liberty to initiate appropriate revenue recovery proceedings by intimating the same to respondents 3 and 4.

The writ petition is disposed of.

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