VUTAKOLU VENKATRA RAO v. M/S MARGADARSI CHIT FUND PRIVATE LIMITED

1. M/S MARGADARSI CHIT FUND PRIVATE LIMITED, REP BY ITS FOREMAN/BRANCH MANAGER, SRI K.NAGESWARA RAO,S/O AGED ABOUT 54 YEARS,R/O ONGOLE, PRASADA RAO, PRAKASAM DISTRICT

2. VUTAKOLU NAGAMANI, W/O. VENKATA RAO, AGED 44 YEARS, PROP SRI BALAJI INDUSTRIES PLASTIC AND PLATES, CUPS MAKING, S.NO.233/1A, NEAR MAMIDIPALEM, ONGOLE (PO AND MDL), PRAKASAM DISTRICT. R/O.H.NO.19-2-3, KOTA STREET, BANDLAMITTA, ONGOLE (PO AND MDL), PRAKASAM DISTRICT.

3. MADASU POLESWARA RAO, S/O. NARAVANA, AGED 40 YEARS. PROP P.R.AUTO MOBILES, D.NO.2-420, ADDANKI ROAD, DARSI (PO AND MDL), PRAKASAM DISTRICT. R/O.H.NO. D.NO.2-402A, NEAR RAMALAYAN, ADDANKI ROAD, DARSI (PO AND MDL), PRAKASAM DISTRICT. ::2::

4. ADAPA JANARDHANA RAO, S/O.RAMANAIAH, AGED 54 YEARS,PROP SRI LAKSHMI ENTERPRISES, POULTRY FORM AND CHICKEN WHOLESALE, KURNOOL ROAD, ONGOLE (PO AND MDL), PRAKASAM DISTRICT. R/O.H.NO.12-387-19, VIRATNAGAR, KURNOOL ROAD, ONGOLE (PO AND MDL), PRAKASAM DISTRICT

5. TRIPURAM SRIDHAR, S/O.BRAHMAM, AGED 44 YEARS, PROP VIJAYA LAKSHMI TRADERS, PLASTIC, IRON SCRAP BUSINESS, BILAL NAGAR, GUNTUR ROAD, ONGOLE (PO AND MDL), PRAKASAM DISTRICT R/O.FLAT NO.51, SATYA SAI APARTMENT, KOTA STREET, (PO AND MDL), BANDLAMITA, ONGOLE PRAKASAM DISTRICT. ONGOLE

6. PADIGAPATI SRINIVASA KUMAR, S/O.VENKATESWARLU, AGED 55 YEARS,FINANCE BUSINESS, KOTA STREET, BANDLAMITTA, (PO AND MDL), PRAKASAM DISTRICT. RC.P R/O.D.NO.58-12-5/6, FLAT NO. 102. 1 FLOOR, GOPI RESIDENCY, SANTHAPET, ONGOLE (PO AND MDL), PRAKASAM DISTRICT. (RESPONDENTS 2 TO 6 PROFORMA PARTIES/NOT NECESSARY PARTIES) ...RESPONDENT(S): Petition under Article 227 of the Constitution of India, praying that in the circumstances stated in the grounds filed herein, the High Court may be pleased to set aside the order passed in E.P.No.38 of 2022 dated 02.01.2026 in A.R.C.No.50 of 2020 on the file of the Principal Senior Civil Judge, Ongole, in the interest of justice. Counsel for the Petitioner:

1. P MALLIKHARJUNA RAO Counsel for the Respondent(S):

1. P DURGA PRASAD ::3:: HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA C.R.P.No.92 of 2026 This Court made the following ORDER: The present Civil Revision Petition is filed by the JDr- 2/petitioner herein against the order dated 02.01.2026 E.P.No.38/2022 in A.R.C.No.50/2020, wherein the execution petition filed by the DHR/Respondent herein under Order 21 Rule II C.P.C was allowed by issuing arrest warrant against the JDr- 2/petitioner herein under Order XXI Rule 38 CPC.

2. The petitioner herein is Judgment Debtor No.2 and the respondent herein is the Decree Holder in E.P. No.38 of 2022. For the sake of convenience and clarity, the parties hereinafter referred to as they were arrayed in the E.P. proceedings.

3. The brief facts of the case: The Decree Holder/Respondent herein which is a chit fund private limited filed A.R.C.No.50/2020 before the Deputy Registrar of Chits, Prakasam District at Ongole against the JDr- 2/petitioner herein for award and decree for recovery of chit claim ::4:: amount of Rs.22,30,759/- along with suit costs. After hearing the same, the Deputy Registrar of Chits, Prakasam District passed an award and decree dated 12.03.2021 in A.R.C.No.50/2020 as under: “In exercise of the power conferred under section 69 of Chit Fund Act 1982, I do hereby order that in view of the above facts the disputant is found entitled to recover Rs.22,30,759/- (Rupees Twenty two lakhs thirty thousand seven hundred and fifty nine only) along with future interest @ 18% p.a on the principal amount of Rs.18,00,000/- (Rupees Eighteen lakhs only) from the date of dispute i.e., 01.10.2020 till the date of award, and thereafter with future interest @12% p.a. till the date of realization. Any other payment made at the instant of the disputant shall also be adjusted in aforesaid quantified entitled amount. This dispute is accordingly decreed in favour of disputant company and against the opponents-1 to 6 jointly and severally. Cost of the dispute of Rs.12,955/- (Rupees Twelve thousand nine hundred and fifty five only) are also awarded. The disputant shall recover the amount by sale of the movable and immovable properties, salary by any other mode of execution as per law.” The Deputy Registrar of Chits, Prakasam District at Ongole also issued recovery certificate on 24.03.2021 under Section 71(A) of the Chit Funds Act, 1982 which shows as under: “RECOVERY CERTIFICATE (Under Section 71(A) of the Chit Funds Act, 1982) This is to certify that on 12.03.2021 an award passed in the dispute thereby it is ordered that the opponents-1 to 6 do pay jointly and severally to the disputant company the total claim amount of Rs.22,30,759/- (Rupees Twenty two lakhs thirty thousand seven hundred and fifty nine only) along with interest at 18% per annum on the principal amount of Rs.18,00,000/- (Rupees Eighteen lakhs only) from the date of filing of the dispute i.e., 01.10.2020 till the date of award, and thereafter with future interest @ 12% p.a till the date of ::5:: realization with cost of Rs.12,955/- (Rupees Twelve thousand nine hundred and fifty five only) the disputant company shall recover the due amount by the sale of movable or immovable properties or by the attachment of salaries or by any other mode as per law.” Pursuant to the award/decree and recovery certificate the Decree Holder/Respondent herein filed E.P.No.38/2022 on the file of Principal Senior Civil Judge Court, Ongole A.R.C.No.50/2020, in which the 2nd JDr filed counter-affidavit and after conducting detailed enquiry, after recording evidence, and marking the documents, the court below allowed E.P. No.38 of 2022 on 02.01.2026 and while allowing the E.P, the Court below also ordered for the arrest of JDr-2 under Order XXI Rule 38 CPC. The said order of arrest in the EP was assailed in the present CRP by the JDr-2. Further, on 08.01.2026 after hearing the JDr-2/petitioner herein this Court was pleased to stay of warrant of arrest subject to deposit of 1/3rd of total EP amount rounded to Rs.7,00,000/- within a period of four (4) weeks from the date of order. The matter underwent two occasions for serving notices to other respondents. Learned counsel representing JDr-2/petitioner herein on 18.02.2026 represented that the interim orders dated 08.01.2026 are not complied with. ::6::

4. Heard learned counsel for the JDr-2/petitioner herein and perused the material placed on record. Memo of proof of service was filed.

5. The fact remains that the JDr-2/petitioner herein has invited an interim order from this Court on 08.01.2026 that stay of warrant of arrest by an undertaking to deposit 1/3rd of the E.P. amount of Rs.21,20,916/-. However, for one reason or the other, despite having invited and secured the said interim order, the JDr-2/petitioner has failed to comply with the conditions stipulated therein. It is a settled principle of law that once a party invites an interim order from the Court, it is duty-bound to strictly comply with the conditions or undertaking imposed in such order. It is an admitted fact that the learned counsel for JDr-2/petitioner herein did not deposit the amount as directed pursuant to the interim orders dated 08.01.2026.

6. In view of non-compliance of the orders of this Court, the JDr-2/petitioner not entitled any relief, more particularly as prayed in the present Civil Revision Petition. Therefore, the present CRP is liable to be dismissed on this ground only. However, even on merits the award has already been passed in the year 2021 and ::7:: even in the execution petition, the JDR and others got contested the execution petition and after considering the evidence and documents filed by the both parties the Court below has rightly allowed the E.P.No.38/2022 on 02.01.2026. It is not the case of the petitioner herein that the award and decree of the Court below is under challenge and it became final. Hence, even on merits the petitioner has not made out any case for interference of this Court. Hence, the present Civil Revision Petition is liable to be dismissed.

7. Accordingly, the present Civil Revision Petition dismissed. No costs. As a sequel, interlocutory applications if any pending, shall stand closed. _________________________________ VENKATESWARLU NIMMAGADDA, J DT: 24.02.2026 ::8:: HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA 252 C.R.P.No.92 of 2026 DT: 24.02.2026