The High Court · 2025

7. Learned counsel for the petitioners has filed salary attachment order in respect of J.Dr.No.4 only. According to him, despite of his best efforts, he could not get salary attachment orders of other respondents.

8. Whereas, G.Vasantharayudu, learned counsel fairly submitted that the Executing Court has passed similar attachment orders in respect of the other J.Drs.

09. Perusal of the aforesaid salary attachment order dated 1g.12.2024 issued by the Executing Court in respect of the petitioner "(* .l KL,J CRI' No.l l1 of2025 No.4/J.Dr.No..l would reveal that Executing Court has directed the Disbursing Oft-rcer of the petitioner No.4 - J.Dr.No.4 to rvithhold the amount of Rs.5,70,060/- from his salary. Leamed Executing Court has also passed similar salary attachment orders in respect of other J.Drs. Virtually. as submitted by the learned counsel for the respondent, the Executing Court directed all the Disbursing Officers of the petitioners to deduct and recover an amount of Rs.5,70,060/- from each. In fact, the aforesaid execution petition was filed by respondent to execute the award for recovery of Rs.5,70.060/- from the petitioners herein. If the Disbursing Officer withhold the said amount and rernit to the account of the aforesaid Ep, it amounts to I I recovery of more than the awarded amount. The same is in violation of the procedure laid down under Contract Act, the Chit Fund Act, 1982 and also the principle laid down by this Court in CRp No.2660 of 2024 dated 18.10.2024. The said aspects were not considered by the Executing Court while issuing impugned salary attachment order.

10. It is relevant to note that Section - 36 ofthe Arbitration and Conciliation Act, 1996 deals with 'enforcement of award' and the same is relevant for the purpose of considering the fts in the present revisions and it is extracted below: --F ./ 1 KL,J CRP No.l 14 of2025 the time lor making "section 36:-Enforcement. -Where an application to set aside the arbitral Arvard under section 34 has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as ilit were a decree ol'the Court. (2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order ol stay ol' the operation of the said arbitral award in accordance rvith the provisions of sub-section (3), on a separate application made for that purpose. (3) Upon filing olan application under sub-section (2) for stay ol the operation of the arbitral award, the Court may, subject to such conditions as it may deem ht, grant stay ol the operation of such award lor reasons to be recorded in writing: Provided that the Court shall. while considcring the apptication for grant of stay in the case of an arbitral award lor payment of rnoney, have due regard to thc provisions lor grant of stay ol a money decree under the provisions ol the Code of Civil Procedure, 1908 (5 of I 908)." I 1. It is also relevant to extract Order - XXI, Rules - I 1 (2), 48 and 48A ofthe CPC and the same are as under: 5 KL.J (lRP No.l l4 oi202i "XXI Rulc f I @) of CPC-Written application- Save as otherwise provided by sub-rule(l ), every application for the execution o1- a decree shall be in writing, signed and verified by the applicant or by some other person proved to the satisfaction of the CoLrrt to be acquainted with the facts ofthe case, and shall contain in a tabular form the following particulars, n4mely- (a) the number ofthe suit; (b) the narnes ofthe parties; (c) the dale ol the decree; (d) whethcr any appeal has been preferred from the decree; (e) whether an1,. and (if any) what, payment or other adjustment of the maltcr in controversy has been made between the panies subseqircntly to the deoree; (f) whcther any, and (if an1') what, previous applications have been made lor thc cxecution of the decree, the dates of such applications and their results; (g) the anrount *'ith interest (if any) due upon the decree, or other relitf granted thereby. together with particulars ol any oross-decrec. whether pa-ssed before or after the date of the decree sotrght to be cxecutedl (h) the amour.rt of the costs (if any) awarded; (i) the nanrc of thc pcrson against whom execution of the decree is sought; and fi) the modc in which the assistance of the Court is required whethcr- (i) by the delivery ofany 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; (i\)h) tlrc rnpointment ofa receiver: (v) otherwise, as the nature of the relief granted may require." v 6 KI-,J CRP No.l l4 of2025 "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 properry to be attached is the salary or allowances of a servant of the Govemment or of a scrvant of a railway company or local authority or ofa servant ofa corporation engaged in any trade or industry which is established by a Central, Provincial or State Act, or a Govemment company as defined in section 617 of the Companies Act, 1956 (l of 1956)l the Court, whether the judgmenrdebtor or the disbursing officer is or is not within the local limits of the Court's jurisdiction, may order that the amount shall, subicct to the provisions of section 60, be withheld from such salary or allowances either in one payment or by monttrly instalments as the Court may direct; and upon notice of the order to such officer as the appropriare Govemment may by notification in the Official Gazette appoint in this behalf,- (a) where such salary or allowances are to be disbursed within the local limits to which this Code for the time being extends. the olficer or other person whose dury it is to disburse the same shall withhold and remit to the Court the amount due under the order, or the monthly instalments, as thc case may bel (b) where such salary or allowances are to be disbursed beyond the said limits, the officer or other person within those limits whose duty it is to instruct the disbursing authority regarding the amount of the salary or allowances to be disbursed shall remit to the Court the amount due under the order, or the monthly instalments, as the case may be. and shall direct the disbursing authority to reduce the I 7 KI,.J lll(l' No.I l4 of2025 aggregrrte of the amounts from time to time, to be disbursed by the aggregatc of the amounts from time to time remitted to the ('ourt. (2) Whcre the attachable proportion of such salary or allowances is alreacll being withheld and remitted to a Court in pursuance of a prcr' ious and unsatisfied order of attachment, the officer appointcd by the appropriatc Government in this behalf shall forthwith retum the subsequcnl order to the Court issuing it with a full statcment of all the particulars of the existing attachment. (3) Every order made under this rule, unless it is retumed in accordance q,ith the provisions of sub-rule (2) shall, without further notice or other process, bind the appropriate Governrnent or the-raihvay company or local authority or corporation of Govemnrcnl company, as the case may be, while the judgmcnt- debtor is within thc local limits to which this Code for the time being extends and while he is beyond those limits, if he is in receipt of any salary or allowances payable out of the Consolitlated Fund of India or the Consolidated Fund of the State or the funds of a railway company or local authority or corporalion or Govemment company in India; and the appropriate Govemment or the railway company or local authorit)' or corporation or Govemment company, as the case may be, shall be liable for any sum paid in contravention oflhis rule. Explanation.-ln this rule, "appropriate Government" means.- (i) As respecls any person in the service of the Central Governnrent, or any servant of a railway administration or of a cantonment authority or ofthe port authority of a major port. or KI,,J CRP No.l l4 of202i any servant of a corporation engaged in any trade or industry which is established by a Central Act, or any servant of a Govemment company in which any pa of the share capital is hetd by the Central Govemment or by more than one State Govemments or partly by the Central Government and partly by one or more Statc Govemments, the Central Gove-mment; (ii) As respects any other servant of the Govemment, or a servant of any other local or other autiority, or any servant ofa corporation engaged in any trade or industry which is established by a Provincial or State act, or a servant ofany other Government oompany, the State Govemment." *Order - XXI, RuIe - 48A. Attachment of salary or allowances of private employees.- (1) Where the property to be attached is the salary or allowances of an employee other than an employee to whom rule 48 applies, the Court, where the disbursing officer of the employee is within the local limits of the Court's jurisdiction, may order than the amount shall, subject to the provision of section 60, be withheld lrom such salary or allowances either in one payment or by monthly instalments as the Court may direct; and upon notice of the order to such disbursing officer, such disbursing officer shall remit to the court the amount due under the order, or the monthly instalments. as the case may be . (2) Where the attachable portion of such salary or allowances is already being withheld or remitted to the Court in pursuance of a previous and unsatisfied order of attachment, the disbursing officer shall forthwith retum thc subsequent order to the Court issuing it with a full statement of all the particulars of the existing attachment. I 9 KL,J L-RP No.l l4 of2025 (3) Every order made under this rule, unless it is retumed in accordance with the provisions of sub-rule (2), shall, without further notice or other process, hind the employer while the j udgment-dcbtors, is within the local limits to which this Code for the time being extends and while he is beyond thoseJimits, if he is in rcceipt of salary or allowances plyable out of the funds ol'an employer in any part of tndi4 and the employer shatl be liable for any sum paid in contravention of this rule "

12. It is also relevant to extract Section - 7l of the Chit Fund Act, 1982 and thc same is as under: "71. Money how recovcred.-Eve ry order passed by the Regisirar or the nominee under section 68 or section 69 and every older passed by the State Govemment in appeal under section 70 lbr payment ofany money shall. ifnot canied out, (a) on a certificate issued by the Registrar' be deenred to be a decree of a Civil Court. and shall be executed in the same manner as a decree of such Court, or (b) be executed in accordance with the provisions olany lau for the time being in force for the recovery of amounts as arrears of land rcvenue: Provided that no application for execution under clause (b1 shall be made aftcr the expiry of three years f'rom the date fixed in the order, and if no such date is fixed, lrom the date of the order."

13. It is also relevant to extract Sections - 126, 128 and 146 of th{ndian Contract Act, 1872 and the same is as under: t 1 l0 KL.J CRP No.l 14 of2025 "126. "Contract of guarantee", "surety", "principal debtor" and "creditor".-A "contract ol guarantee" is a contract to perlorm the promise, or dischargc the liability, of a third person in case of his default. The person who gives the guarantee is called thc "surety"; the person in respect of whose delault the grarantee is given is called thc "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written." "128. Surety's liabilitl,.-1-he liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided b1 lhe contract." "146. Co-sureties liable to contribute equally.-Where two or mori pe.ron, are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contracts, and whether with or without the knowledge of each other, the co-sureties, in the absence of any contract to the contrary. are liable. as between themselves, to pay each an equal share of the whole debt, or of that part of it which remains unpaid by the principal debtor."

14. Thus, the liability of the co-surety is co-extensive with that of principal debtor unless it is otherwise provided by the contract. The said principle was also laid down by a Division Bench of the High Court of Judicature for the States of Telangana and Andhra \ / 7 1l KI,.J (lltP No.l l4 ol'2025 Pradesh at Hyderabad in Punyamurthula Venkata Viswa Sundara Rao v. M/s. Margadarsi Chit Fund Pvt. Ltd.r.

15. The aforesaid relevant provisions would reveal that for realization of the amount covered under the arbitration award, respondent - decree holder has to file an application under Section - 36 of the Arbitratkrn and Conciliation Act, 1996, and Order - XXI Rule I 1 (2) of CPC. Accordingly, respondent No.l had fited the aforesaid execution petition vide E.P.No.299 of 2024-

16. Iri l'unyamurthula Venkata Viswa Sundara Raor, the Division Bench on consideration of the contentions advanced by the parties, framed the following two (02) points for consideration: whether the decree holdcr has to proceed against all the judgment debtors, who are guarantors, by claiming proportionate amount dccreed. lt. whether the execution Courts in which E.Ps. were filed against the present judgment debtors, who are revision petitions herein, have jurisdiction to entertain the execution petitions.

17. On consideration of the provisions of the Chil Fund Act and the CPC, the Division Bench held that the course that has to be '. 20l? (3) ALT 82 (D.8.) 12 KT,,J CRP No.I l4 of2025 followed by the decree holder is to make an application to the Registrar for execution, to be forwarded to the proper authority at the option ol the decree holder and the Registrar shalI himself issue the certificate and forward the said application to the Court or revenue authority, as chosen by the decree holder. The decree holder has an option to proceed against either the principal debtor or any of the guarantors or against all of them. Referring to Section - 128 of the Indian Contract Act, the Division Bench held that the liability of a surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract.

18. ln Madamanchi Anill Kumar v. Margadarshi Chit Fund Pvt. Limited,' Dirision Bench of the High Court of Andhra Pradesh I at Hyderabad considering the said principle laid down by the Division Bench in Punyamurthula Venkata Viswa Sundara Raor, held that the liability of the sureties is joint and several. The Division Bench also negatived the contention raised by the petitioner therein that a Recovery Certificate issued by the Deputy Registrar of Chits cannot be acted upon, as per Rule - 55 of the Andhra Pradesh Chit Fund Rules, 2008 and that an execution is maintainable only if the recovery '. c.R-p. No.z::s of20l8, decided on 05.11.2018 KL.J CRP No I 14 of2025 certificate has been issued by the Registrar of Chits to the competent Civil Court.

19. On consideration of the aforesaid provisions and on examination of the facts of the case therein, in Prattipati Srinivasa Rao v. M/s. Shriram City Union Finance Limitedr, this Court held that the decree-holder cannot recover double the awarded amount from the judgrnent debtors, and it is entitled for the decretal amount and interest as claimed by it from the judgment debtors.

20. As discusied above, the Award was passed for recovery of Rs.4,70,4201- along with interest @ 18% per annum on the principal amount of Rs.4.62,270l-, and the petitioners are jointly and severally liable to pay the said amount. Respondent has filed the aforesaid execution petition against the petitioners herein to recover the aforesaid amount of Rs.4,70,420l- with interest at l8%o p.a. each from their salaries. Without considering the aforesaid aspects, more particularly, Sections - 128 and 146 of the provisions of the Indian Contract Ac and Section -71 of the Chit Fund Act and also the principle laid down in Punyamurthula Venkata Viswa Sundara Raor, Madamanchi Anill Kumar2 and Prattipati Srinivasa Rao3, '. Cor*) {*,1". in C *n tuor. t:f &' t 5 t ot2023. decided on 02.03.2023 1 t.+ KL,J CRP No.ll4 of2025 the Executing Court issued the impugned salary attachment order dated 19.12.2024 inE}. No.299 of 2024. Thus, by virtue of the said salary attachment orders, there would be recovery of more than the awarded amount from the petitioners herein which is impermissible under law. The same is in violation of the procedure laid down under Contract Act, Chit Fund Act, 1872 and also the principle laid down by this Court in CRP No.2660 of 2024 dated 18.10.2024. The said aspects were not considered by the Executing Court while passing the impugned order dated 19.12.2024 in E.P. No.299 of 2024. Therefore, the said order is liable to be set aside

21. The present Civil Revision Petition is accordingly allowed. The impugned order dated 19.12.2025 in E.P. No.299 of 2024 in ARB No.324 of 2023 passed by learned II Additional Junior Civil Judge, at Karimnagar, IS set aside. The matter is remanded back to the Executing Court with a direction to consider the said E.P. No.299 of 2024 in ARB No.324 of 2023 afresh and pass appropriate orders in accordance with law including the aforesaid provisions and principle laid down by this Court. In the circumstances of the case, there shall be no order as to costs. l5 NI-.] CRP No I lJ of2025 As a sequcl thereto, miscellaneous petitions, if an1', pending in this revision shall stand closed. //TRUECOPY// sd/ -v. KAVITHA ASSISTANT REGISTRAR ,(\N- N OFFICER / To,

1. The II Additional Junior Civil Judge at Karimnagar' 2. One CC to Sri Rajesh Bathula, Advocate [OPUC] 3. One CC to Sri G.iasantha Rayudu, Advocate [OPUC] 4. Two CD Cop:ies. JCK/kam \n- ,I I :\] HIGHCOURT DATED:\7/02/2025 ORDER CRP.No.114 of 2025 d1 TSt: A re: ( o 16 APfl 206 z o t o€ F' AT c I Allowing the C.R.P. h'ithout costs. o pls (p\' G