HON’BLE SRI JUSTICE K. LAKSHMAN CIVIL REVISION PETITION No.1052 OF 2025

ORDER

Heard Mr. K. Buchi Babu, learned counsel for the petitioners -

Judgment Debtors. Despite service of notice on the respondent -

decree holder, there is no representation on its behalf.

2. The petitioners herein filed the present revision challenging the order dated 22.11.2024 passed by learned I Additional Junior Civil Judge, Karimnagar (for short ‘Executing Court’) in E.P. No.319 of

2014 in Arb. No.232 of 2023.

3. The petitioners herein are judgment debtors, while the respondent is the decree-holder in E.P. No.319 of 2024.

4. On the application filed by the respondent under Section - 64 of the Chit Fund Act, vide Arbitration Case ARB No.232 of 2023, the Chit Arbitrator/Deputy Registrar of Chits, Karimnagar had passed an award dated 29.04.2024 directing the petitioners herein to pay an amount of Rs.4,44,021/- along with interest @ 18% per annum on the principal amount of Rs.3,98,258/- from the date of filing the dispute (i.e., 21.04.2023) till the date of realization jointly and severally.

5. Pursuant to the said award, the respondent herein had filed an execution petition vide E.P. No.319 of 2024 in ARB No.232 of 2023 for realization of the award amount against petitioner Nos.2 to 5 herein for Rs.5,66,496/-. Vide order dated 22.11.2024, learned Executing Court issued warrants against petitioner Nos.2 to 5 through Court and registered post with acknowledgment due on payment of process. Challenging the said order, dated 22.11.2024, the petitioners filed the present revision on the following grounds:

i) The respondent without obtaining recovery certificate from the Deputy Registrar of Chits under Section - 71 of the Chit Funds Act, 1982, filed the aforesaid E.P.; and ii) Learned Executing Court without following the said mandatory procedure, numbered E.P. and issued attachment of salary warrants.

6. In view of the specific plea taken by learned counsel for the petitioner that the decree holder without obtaining recovery certificate as required under Section - 71 of the Chit Fund Act, filed the aforesaid E.P. before the Executing Court, vide order dated 11.04.2025, this Court directed the Registry to call for original record in E.P. No.319 of 2024. Pursuant to the same, this Court received the original record from the Executing Court.

7. Perusal of original record would reveal that the decree holder made an application dated 30.07.2024 to the Deputy Registrar of Chits, Karimnagar, to issue Recovery Certificate against the judgment debtors in ARB No.232 of 2023 to execute the same before the Civil Court. On receipt of the said representation, the Chit Arbitrator had issued Recovery Certificate as required under Section - 71 (a) of the Chit Fund Act on 21.08.2024 under Rule - 55 (2) of the Telangana Chit Fund Rules, 2008. As per the said recovery certificate, in case of default of payment of the awarded amount with interest, it was ordered to be recovered by the sale of movable or immovable properties or by attachment of salaries belong to the opponents or by any other mode as per law. In the said recovery certificate, the costs of the suit is shown as Rs.11,250/-. Thereafter, vide letter bearing No.CF/ARB/232/2023, dated 09.09.2024, the Deputy Registrar of Chits, Karimangar forwarded the said Recovery Certificate along with application of Foremen of the decree holder to the Executing Court.

8. Perusal of record would also reveal that the Executing Court received the said Recovery Certificate on 18.09.2024. Thereafter, the decree holder filed the aforesaid E.P. 319 of 2024 before the Executing Court on 13.11.2024 for realization of decretal amount along with interests and costs to a tune of Rs.5,66,496/- seeking salary attachment of judgment debtor Nos.2 to 5. In the said E.P., judgment debtor No.1 made his appearance through an Advocate by filing vakalat on 19.02.2025. Vide order dated 22.11.2024, the Executing Court issued warrants of salary attachment against jud