Gudala Saqar. S/o. Kanakaiah v. l.KAPILChits(KAKATIYA)PrivateLimited

Petition under Section -r.s1 cpc praying that in the circurnstances stated in the affidavit fired in supportorthe petiti;nlil""H,fi court.may le preased to stay of a[ further proceedinos in Ep. No. 1i;;i i0;;':; nEn. r.ro. 1o)_stzo21on the fire of the Honorabre speiial jrdiglg! rr,r"gilir;L- "i'irlt crass f,rr Triar of cases under pcR acr cum ADDL. Lururontivu*jriocE'r"arnagirr disrrict, pendins disposat of the above civir Revision F"iiti".'i"rlrlinis Honorabre court. Counsel for the petitioner(s):SRl. 'r l Kalidas Vamshikrishna Counsel for the Respondents: - The Court made the following: ORDER I I ,I ; l l I l I i I I I l IION 'BLE S RI EK. CTVTL ION PET ITION No.9 8O of 20,25 OR.DER: Heard Learned c'ounsel for the petitioner' Perused the record

2. Perusal of t}.e record would reveal that resporrdent No.l has hled an application under Section 64 of tlle Chit Funds Act, lga2 (for short 'the A"!' 1982) uide ARB.No.1O29 of 2O2l before the Chit Arbitrator/Deputy Registrar of Chits, Karimnagar' claiming an amount of Rs.4,64,528 /- along with interest from the petitioner and respondent Nos.2 to 6' Respondent No'2 is the subscriber of the Chit with respondent No'1' Petitioner and respondent Nos.3 to 6 stood as guarantors to the said Chit Funds' l,earnedChitArbitratorhaspassedanaward,dated 24.OA.2O23 holding that the petitioner and respondent Nos.2to6arejoinflyandseverallytiabletopaythesaid amount i.e., Rs'4,64 ,5281- with interesf @ l8o/" p'a' on the principal arRor]rrt of Rs'3'72'98O/- from the date of hling of dispute to till the date of reaJization of the said amount' KL,J C.R.P.No.98O of 2025 2

3. Respondent No. I had filed an execution I)etition in the terms of Order 2L Rule 4g of CpC vide E.p.No. LL4 of 2fJ24 in ARB.No.1O29 of 2O2I againsf the petitioner and respondent Nos.2 to 6 for recovery of the said amount. The said execution petition is pending.

4. The petitioner filed the present petition challenging the said Execution proceedings itself cont:nding that respondent No. 1 cannot recover the entire aw ard amount each from the petitioner and respondent Nos.2 [o G and the same is in violation of the procedure laid dowrr under the Contract Act, 1972 and the Act, 19g2.

5. It is r:elevant to extract Order _ XXI, Rules _ 48 of the CpC and the same is as under: 11 {2) and "XXI Rule lL (2) of CpC_Written applicartion_ Save as otherwise provided by sub_rute(l), every application for the execution of a de:cree shall be in writing, signed ald verihed b1.the applicant or by some other person proved to the satisfaction of the Court to be acquai:eted with the facts of the case, and shall contain in KL'J C.R.P.No-gaO of 2025 3 the foll,owing Particulars' a tabular form namelY- (at the number of the suit; (bf the narnes of the Parties; (c) the date of the decree; (dl whether any appeal has been preferred from the decree; f',I:."ffi :'"ff L#.f"T'L.:l1l,s#;l;:; made between the Parhes il;^ ;; subsequentlY to the decree; IO whether any, and (if any) what' previous Xli#{;;";;:::':"..XXi'.f:rT;ffi:H:: of the decree, the da and their results; (er the amoun! TP^:,fi;:; $#.LtT":X;; the decree, or otner L".ri". #'n particulars of any cross-decree' ;f;:il; ;;;;"4 u"roi' o' arter ihe date or the to be executed; i..*" ".i,gt't (hf the arnount of the costs (if any) awarded; lil the name of the person' against whom :l#;;;iih" d"'"" is sought; ano lil the mode in which the assistance of the 6turt is required whether- (i) by the detivery of any Property specifically decreed; KL.J C.R-p.No.9AO oJ 2OiS 4 (ii)by the attachment, or by the attachment ,,,.,r,,""1*"nt, of any property; (trr) by the ar.."i, Td 1a.l",or by the sale without of any person: md detention in prison (iv) by the appoint r v) o t her#se,' ;"-",,ffi'"ff::?1f, granted may require. :.' "'::i,'J, t#.:,#; "Order IOil Rule 48 of CPC_Attachment of srlaty or olfosances of sernant of Government or railway coEPany or authority.- (1) Where the propert5r [o be attached is the salar5r or allowances servant of the Government or of a.,servan t of a railway company or local authorit5r or bf a servant of a corporation engaged in any trade or industry which is Provinciar or state T:::::': company as defined in section Orz orl t}r" Companies Act, 1956 (1 of I9S6)J the Ccurt, whether the judgment_debtor or the disbur.sing officer is or is not within tlae local limits o.f the Court's jurisdiction, may order that the amount shall, subject to the provisionr; of section 6O, be withheld from such salar.r or allowances either inr one paJrment or by monthly insta-lments as the Court may direct; and upon notice of the order to such officer- as the appropriate Government may by KL'J CR.P.No.9aO oI2As 5 notifrcation in the Oflrcial Gazctle appoint in this behalf,- (a) where such salary or allowances are to be disbr:rsed within ttre {ocal limits to which this Code for the tirne being extends' the oflicer or other person whose duty it is to disburse the same shall withhold and remit to the Court the arnount due under the order, or the monthly insta'lrnents' as the case maY be; (b) where such salar5r or allowances are to be disbursed beyond the said limits' the officer or other person withifl those limits whose duty it is to instruct the disbursing authority regarding the amount of the salar5r or allowances to be disbursed shall remit to the Court the amount due under the order, or the monthly instalrnents' as may be, and shall direct the the case authoritY to reduce the disbursing of the amounts from tirne to aggrega.te time, to be disbursed by the eggregate of the amounts from time to time remitted to the Crcurt. KL,J C.R.P.No.gao of 2O2S 6 (2) Where the attachable proportion r)f such salary or allowances is already being v"ithheld and remitted to a Court in pursuanr:e of a prerrious and unsatisfred order of attac hment, the offrcer appointed by the appropriate Government in this behalf shall fo.thwith return the subsequent order to the Court issuing it with a full statement of ,rll the particulars of the existing attachment. AS (3) Every order made under this rule, unless it is returned in accordance with the prorrisions of sub-rule (2) shall, without further notice or other process, bind the appropriate Government or the railway compErny or- local authority corporation of Govenrment the case may be, while the company, judgment-debtor is within the local lirrLits to which this Code for the time being exteni.s and while he is beyond those limits, if he is in receipt of any salar5r or allowances payable out of the Consolidated. Fund of India or: the Consolidated Fund of the State or the funds of a railway company or local authorily or corporation or Government company in lndia; and the appropriate Government or the railway company or local authority or corporation or KL,J C.R.P.No.98O of 2025 7 Government company, as the case may tre' shall be liable for arry sum Paid in contraventi'on of tllis rule' ExPlanation'-[n this rule, "aPProPriate Government, administration Government" means,- (i) As respects any person in the service of the arly servtult of a Central of a cantonment railway authority or of the port authority of a major port, or any servant of a corporalion engaged in any trade or industry which is established by a Central Act, or any servant of a Government comparry in which any part of the by the Central strare caPital is held than one State Government or bY more by the Central Governments or PartIY Government and partly by one or more State Goverrrments, the Central Government; (ii) As req)ects any other servant of ttrc Government, or a servarlt of any other local or other authoritY, or any servant of a corporation engaged in any trade or industr5r which is established by a Provincial or State act, or a servaflt of any ottrer Government comPany' the State Government'" c.R.P.No.s*o oI#;{ 8 6 It is also relevant to extract Section _ 7I ofthe Act, 19g2 and the same is as under: "71. Money how recovered._Everv order passed by the Registrar or the nominee under section 68 or section 69 arrd every passed by the State Government in under section ZO for paJ.ment of any shall, if not carried out _ appeal (a) on a certifrcate issued by the Regis trar, be deemed to be a decree of a Civil Coq11, ard shalt be executed in the same marrner as a decree ofsuch Court, or (b) b. executed in accordance with the provisions of any law for the time beinlJ in force for tJre recovery of amounts as ar:rears of tarrd revenue: provided that no application for execution under clause (b) shall be made after the expiry of three years from the date Frxed in the order, and if no such date is frxed, from the date of the order."

7. It is also relevant to extract Sections _ 126, l2gand 146 of the Indian Contract Act, 1gT2 and the s:rme is as under: KL'J C.R.P.No.9EO of 2025 9 (surety'' (creditor"-- o126. uCorrtract of guaranteer ' "principal debtor- "d a contract to A "contract of guarantee" is perform the promise, or discharge the liability' of a third person in case of his default' The person who grves the guarantee is called the "suret5/; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the gua-rantee is given is called the "credito/' A guarantee may be either oral or written'" "128. Surety's liability'-The liability of the ttrat of the suret5l is co- extensive is otherwise pri.ncipal debtor, unless provided bY the contract'" "146. Co-sureties tiabt'e to contribute equally.-Where two or more perso{ls are co- sureties for the same debt or duty' either jointly or severally, and whether under the szune or different contracts, and whether with or without the knowledge of each other' ttre co- sureties, in the absence of any contract to tl"e contrary, are liable, as between themselves ' to pay each an equal share of the whole debt' or KL,J C.R-P.No.98O of2O2S l0 of that part of it which remains unpai(t by the principal debtor." 8 From the above, it t.llus becomes clear tJrat liabitity of co-surety is co-extensive with that of prilrcipal debtor unless it is otherwise provided by the contre.ct. The said principle was also 1aid down by a Division Bench of the High Court of Judicature for the States of Tt:langana and Andhra Pradesh at Hyderabad in punyamurtLruta Venkata Viswa Sundara Rao v. M/s. Margadarsi Chirt Fund pnt. Ltd.1.

9. The aforesaid relevant provisions wortld re veal that for realization of tl e amount covered under thr: arbitration award, respondent No.l decree holder hars to file an X)(I Rule t t (21 of CpC. No. I had filed the aforesaid application under Order Accordingly, respondent execution petition vide E.p.No. I 14 of 2024. 1(). In Punyamurthula Venkata Viswa Sunctara Rao (l supra), the Division Bench of this Court on consrideration of '. 20l7 (3) AL'f 82 (D.8.) KL'J C.R.P.No.98O of 2O25 the arguments advanced by the parties' framed the following two (02) points for consideration: I whether the decree holder has to Proceed against atl the judgment debtors, who are guarantors, by claiming proportionate amount decreed. whether the execution Courts in which E.Ps. were filed against the present judgment debtors, who are revision petiiions herein, have jurisdiction to entertain the execution petitions' l1

11. On consideration of the provisions of the Chit F\rnd Act and the CPC, the Dirrision Bench held that the course that has to be followed by the decree holder is to make an application to the Registrar for execution' to be forwarded to tlre proper authority at the option of the decree holder and the Registrar shall himself issue the certificate and forward the said application to the Court or reveme authority, as chosen by the decree holder' The decree hold.er has an option to proceed against either the principal debtor or any of the gua-rantors or against all of them' KL,J C.R.P.No.98O of 2O2S 12 Referring to Section - I2g of the Indian Cor.r tract Act, the Division Bench held that the liability of a suret5r is co_ extensive with that of the principal debtor unless it is otherwise provided by the contract.

12. In Madrmanchi Ani[ Kumar v. Margadarshi Chit Fund Prrt. Limited2, a Division Bench of the l{igh Court of Andhra Pradesh at Hyderabad considerir:g the said principle laid down by the Division Bench in Punyamurthula Venkata Viswa Sunrtara Raor, held that the liability of the sureties is joint and severa-I. The Division Bench also negatived the contention raisred by the petitioner therein ttrat a Recovery Certificate issued by the Deput5r Registrar of Chits cannot be acted upon, as per Rule - 55 of the Andhra pradesh Chit Fund lRules, 2OOg and that an execution is maintainable only if l.he recovery certificate has been issued by the Registrar of rl)hits to the competent Civil Court. '. c.R.p. No.2l l8 0f 2018, dccided on 05. t 1.20 tE KL'J C.R-P.No 98o of2025 t3

13.onconsiderationoftheaforesaidprovisionsandon examination of the facts of the case therein' in Sri Bandi Chandra Hhri3, this Court held that the decree-holder cannot recover doubte or more the awarded amount from the judgment debtors, and it is entitled for the decretal amount and interest and costs awarded by the Chit Arbitrator/Deputy Registrar of Chits'

14. It is relevant to note that Section 60 of the C'P'C deals wittr outlines of the property that is liable to attachment and sale in execution of a decree' It specifres a list of that can be attached' and sold to satisff a properties judgment. These include lands, houses' buildings' goods' money, bank notes, and other financial instruments' However, it atso includes exceptions' such as necessar5r wearing apparel, cooking vessels, and personal ornaments' as well as certain exemptions for government pensioners and local auttroriqr emPloYees ' ' c.RP,No.l237 0f 2024' decided on 03'05 2024 t4 KL,J C.R.P.No.9aO of 202s _)

15. Section 6O(t) (i) (ia) of the C.p.C is rek:vant and it is extracted below: ' Section 60_ property liable to atta chment 1. The following properly is lirrble to attachment and sale in Lxecutitn of . a".."", nalely, lands, houses or other buildings, -UiUs goo-d", rnoney, balknotes, cheques, exchaage, hundis, promissbry notes, -'o. 'oth". Government securities,' bonds securities for money, debts, corpo.ration and, save as herr:inafter mentioned, all other saleable ,r.r..ar, movable or irnmovable, belonging'I,o-- tt" judgment-debtor, or over which., L, it" prohts of which, he has a disposing p"*..-_f,i"t fr. may exercise for his own beneht, whether the same be held in the narne of the judlynent_ debtor or by another person in t ust fo.'iiim o. on his behalf; "h-e" (a to h);ooo< (i) !d".V to the extent of the hrst four . hundred rupees and two tti.a -.i -L" remainder in execution of aly decree other than a decree for maintenan*i pr"ria",f"t", yhele any part of such portion;ith";;"" is liable to attachmCnt has been ,-,ria". attachment, whether continuously or intermittently, for a totat p".ioJ of-t*"*.r'ty_for. monlhs, such portion sail t. "*"*pl'f.l_ attachment until the expry "f a nr.tfrei 1>..ioa of twelve months, and, whire """t, "tt""i,*.rrt nas Deen made in execution of one and the same decree, shall, after the ^tt""frm.ni t r" continued for a total period of t*"rtj_f;. \ \ ( t5 KL'J c.R.P-No-98O ol2025 morlths' be finally exempt from attachment rn execution of that deree' Iial one-third of the salary in execution of *y 1""."" for maintenance' " In the present case execution petition is pending' 16. Therefore, ttrere are no salary attachments passed by the learned Executing Court' Therefore' the Executing Court has to decide the said E'P'No'114 of 2024 strictly in accordance with law, more parLicularly' by following the procedure laid down under the Contract Act' L872' the Act' L982 and the principles laid down by this Court in the aforesaid Judgments' On receipt of entire decretal amount including interest, the decree holder has to frle full satisfaction memo before t-he executing Court with a request to terminate t1.e execution proceedings' 17. In the light of the said discussion' this revision rs disposed of directing learned Principal Junior Civil Judge at Karimnagar to dispose of tlre E'P'No'114 of 2024 ln ARB.No.1O29 of 2O2i_ strictly in accordance with law by considering the proc'edure laid' down under the C'ntract l6 KL,J (:.R.P-No.98O of 2O2S ) Act, L872, Act, I9g2 C.p.C and also the principles laid down by this Court in the aforesaid Judgments. No costs. As a sequel, the miscellaneous petitions, if an1r, pending in this Civil Revision petition shall stand closed. To, //TRUE COPY// SD/.,L. VIJAYA LAXMI ASSIS'TANT REGISTRAR \-/ SECTION OFFICER 1 The special Judiciar Magistrate_of First class for Trial <>f cases Under PcR Act_cum ilt Addl. inior Civii Jrag-" Klri;nagar District. lwitn records if any)

2. One CC to SRt. KALIDAS VAMSHTKRTSHNA Advocate tO ?UCI 3- Two CD Copies (e- HIGH COURT DATED:21lo3l2O2s ORDER CRP.No.980 ot 2O25 CIVIL REVISION PETITION IS D{SPOSED OF (s- 6 t,h 5 i,.1;: -\io.J 1l] JUr 2025 * ,it..... - .-- ..-,.1 * '.,:-i: