High Court · 2025

stated in the affidavit fired in pleased to condone the delay of 264 days in filing the present CRp; lA NO: 3 OF 2025 -srrpport of the petition, the High corrt ."f Petition under Section i 5'r cpc praying that in the circumstances stated in the affidavit frred in support of *r^e^ peirtion, in" ,igt", court may pr.*"J t" suspend the order, dated 21-03-2024 in E.p.No. 6s-of 2024 in n.n.sNio. i63l ot 2021 on the file of the principal Junior Civil Judge at Karimnagar,; Counsel for the Petitioners Counsel for the Respondent NO.1 Counsel for the Respondent No.2 :SRl. C SRI HAR| PRASAD :SRI KSSAI PAVAN -Le The Court made the following: ORDER HON'BLE SRI JUSTICE K. LAKSHMAN CIVIL REVTSION PETITION No.933 of 2025 ORDER: Heard learned counsel for the petitioners and Sri K.S.Sai Pavan, learned counsel for the respondent No.1. Perused the record.

2. This Civil Revision Petition is hled under Section 115 of C.P.C. challenging the attachment order, dated

21.O3.2O24 in E.P.No.65 ol2024 in ARB.No.1637 of 2O2l by the Principal Junior Civil Judge at Karimnagar'

3. Respondent No.3 is the subscriber of the Chit and petitioners and respondent Nos.4 to 6 are the guarantors to the subject Chit. Respondent No' 1 has filed an application under Section 64 of the Chit Funds Act, 1982 (for short the Act, 1982'l uide ARB.No'1631 of 2O2l before the Chit Arbitrator/Deputy Registrar of Chits, Karimnagar, claiming an amount of Rs.19,26,504/- along with interest from the petitioners and respondent Nos'4 to 6. Learned Chit Arbitrator has passed an award, dated KL,J C.R.P.No.933 of 2O2S 2

17.O4.2023 holding that the petitioners and respondent Nos.3 to 6 are jointly and severally liable to pay the said amount i.e., Rs.19,26,SO4/_ urith interest (tl lg%o p.a. on the principal amount of Rs.16,96,g2O/- from the date of filing of dispute to till the date of realization of the said amount.

4. Thereafter, respondent No.1 has filed an execution petition ulde tr.p.No.65 of 2024 in ARB No. 163l of 2O2l under Order XXI Rule 1 1 of C.p.C for realization of the awarded amount including interest. Vide impugned salary attachment orders, both dated 21.O3.2O24, the Executing Court directed the Salary Disbursement Officers of the petitioners/J.Dr.Nos.3 and 4 to withheld an amount of Rs.23,95,692/_ from the salary of the petitioners and remit to the account of the aforesaid Execution Petition of the Executing Court. Challenging the said attachment orders, the petitioners hled present Civil Revision petition. KL,J C.R.P.No.933 of 2025 3

5. It is relevant to extract Order - XXI, Rules - 11 (2) and 48 of the CPC and the same is as under: "XXI Rule 1 1 (2) of CPC-Written application- Save as otherwise provided by sub-rule(1), every application for the execution of a decree shall be in writing, signed and verified by the applicant or by some other person proved to the satisfaction of the Court to be acquainted with the facts of the case, and shall contain in a tabular form the following particulars, namely- (a) the number of the suit; lbf the names of the parties; (c| I he date of the decree; ldf whether any appeal has been preferred from the decree; (ef whether any, and (if any) what, payment or other adjustment of the matter in controversy has been made between the parties subsequently to the decree; (fl whether any, and (if any) what, previous applications have been made for the execution of the decree, the dates of such applications and their results; (gf the amount with interest (if any) due upon the decree, or other relief granted thereby, together with particulars of any cross-decree, whether passed before or after the date of the decree sought to be executed; (hf the amount of the costs (if any) awarded; KL,J C.R.P.No 933 of 2O2S 4 (i) the name of the person against whom execution of the decree is sought; and fi) the mode in which the assistance of the Court is required whether- (i) by the delivery of any 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; (iv)by the appointment of a receiver; (v) otherwise, as the nature of the relief granted may require." "Order XXI Rule 48 of CpC-Attachment of salary or allowances of servant of the Government or railway company or local authority.- (t) Where the property to be attached is the salary or allowances of a servant of the Government or of a servant of a railway company or local authority or of a servant of a corporation engaged in any trade or industry which is established by a Central, provincial or State Act, or a Government company as defined in section 677 of the Companies Act, 1956 (1 of 1956)l the Court, whether the judgment-deblor or the disbursing officer is or is not within the local limits of the Court's jurisdiction, may order that the amount shall, subject to the provisions of section 60, be withheld from 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 officer as the appropriate Government may by KL,J C.R.P No.933 of 2025 5 notification in the Ofhcial 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 officer or other person whose duty it is to disburse the same shall withhold and remit to the Court the amount due under the order, or the monthly instalments, as the case maY be; (b) where such salary or allowances are to be disbursed beyond the said limits, the ofltcer 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 aggregate of the amounts from time to time, to be disbursed by the aggregate of the amounts from time to time remitted to the Court. (2) Where the attachable proportion of such salary or allowances is already being withheld and remitted to a Court in pursuance of a previous and unsatisiied order of attachment, the officer appointed by the appropriate Government in this behalf shall forthwith return the subsequent order to the Court issuing it with a full statement of all the particulars of the existing attachment. KL,J C.R.P No.933 of 2025 6 (3) Every order made under this rule, unless it is returned in accordance with the provisions of sub_ rule (2) shall, without further notice or other process, bind the appropriate Government or the railway company or local authority or corporation of Government company, as the case may be, while the judgment-debtor is within the 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 Consolidated Fund of India or the Consolidated Fund of the State or the funds of a railway company or local authority or corporation or Government company in India; and the appropriate Government or the railway company or local authorit5r or corporation or Government company, as the case may be, shall be liable for any sum p.rid in contravention of this rule. Explanation. -In Government" means,- this rule, "appropriate (i) As respects any person in the service of the Central Government, or arly selwant of a railway administration or of a cantonment authority or of the port authority of a major port, or any serwant of a corporation engaged in any trade or industry which is established by a Central Act, or any servant of a Government company in which any part of the share capital is held by the Central Government or by more than one State Governments or partly by the Central Government and partly by one or more State Governments, the Central Government; KL,J C.R.P.No.933 of 2O25 7 (ii) As respects any other servant of the Government, or a servant of any other local or other authority, or any servant of a corporation engaged in any trade or industry which is established by a Provincial or State act, or a servant of any other Government company, the State Government."

6. It is also relevant to extract Section - 7l of the Chit Fund Act, 1982 and the same is as under "7L. Money how recovered.-Every order passed by the Registrar or the nominee under section 68 or section 69 and every order passed by the State Government in appeal under section 70 for payment of any money shall, if not carried out,- (a) on a certificate issued by the Registrar, be deemed to be a decree of a Civrl Court, and shall be executed in the same manner as a decree of such Court, or (b) be executed in accordance with the provisions of any law for the time being in force for the recovery of amounts as arrears of land revenue: Provided that no application for execution under clause (b) shall be made after the expiry of three years from the date ftxed in the order, and if no such date is fixed, from the date of the order." KL,J C R.P.No.933 of 2025 8

7. It is also relevant to extract Sections - 126, 128 and 146 of the Indian Contract Act, lBT2 and the same is as under: "126. "Contract of guarantee", ,,suretyrr, "principal debtor', and ..creditor,,.- A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guaralltee is called the "surety,,; the person in respect of whose default the guarantee is given is called the "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 liability.-The liability of the surety is co- extensive with that of the principal debtor. unless it is otherwise provided by the contract." "146. Co-sureties liable to contribute equally.-Where two or more persons are co- sureties for the same debt or duty, either jointly or severally, and whether under the same or clifferent 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 KL,,] C.R.P.No.933 of 2025 9 of the whole debt, or of that part of it which remains unpaid bY the PrinciPal debtor'"

8. From the above, it thus becomes clear that liability ol 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 Pradesh at Hyderabad in Punyamurthula Venkata Viswa Sundara Rao v' M/s' Margadarsi Chit Fund Rrt. Ltd.1. g.Theaforesaid'relevantprovisionswouldrevealthatfor realization of the amount covered under the subject award, respondent No.1 - decree holder has to file an application under Order - XXI Rule 11 (2) ol CPC' Accordingly, respondent No. t had filed the aforesaid execution petition vide E.P.No'65 of 2024' 1O. In Punyamurthula Venkata Viswa Sundara Rao (1 supra), the Division Bench of this Court on consideration ', zotl 1t1 rrlr az 1o.n.1 KL,J C.R.P.No 933 of 2O2S l0 of the arguments advanced by the parties, framed the following two (02) points for consideration: i. whether the decree holder has to proceed against all the judgment debtors, rvho are guarantors, by claiming proportionate amount decreed. ii. whether the execution Courts in which tr.Ps. were fiied against the present judgment debtors, who are revision petitions herein, have jurisdiction to entertain the execution petitions.

11. On consideration of the provisions of the Chit Fund Act and the CpC, the Division 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 forwarcred to the proper authority at the option of the decree holder and the Registrar shail 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 KL'J C.R.P.No.933 of 2025 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'

12. In Madamanchi Anill Kumar v' Margadarshi Chit Fund Pvt. Limitedz, a Division Bench of the High Court of Andhra Pradesh at Hyderabad considering the said principle laid down by the Division Bench in Punyamurthula Venkata Viswa Sundara Raol' held that the liability of the sureties is joint and several' The DivisionBenchalsonegativedthecontentionraisedby the petitioner therein that a Recovery Certilicate issued by the Deputy Registrar of Chits cannot be acted upon' as per Rule - 55 of the Andhra Pradesh Chit Fund Rules' 2OO8 and that an execution is maintainable only if the recovery certificate has been issued by the Registrar of Chits to the competent Civil Court' '. c.R.P. No.2338 0f2018, decided on 05 11 2018 KL,J C R.P.No.933 oJ 2O2S 2

13. On consideration of the aforesaid provisions and on examination of the facts of the case therein, in Sri Bandi Chandra Haris, this Court held that the decree_holder cannot recover double the awarded amount from the judgment debtors, and it is entitled for the decretal amount and interest as ciaimed by it from the judgment debtors.

14. As discussed supra, learned Executing Court has issued impugned sarary attachment orders, both dated 27.O3.2024 directing disbursing Officers of petitioners/,J.D.R.Nos.3 and 4 to withhold the entire amount covered under the said award each from the petitioners/J.D.R.Nos.3 and 4, remitted the said amount to the account of the trxecuting Court. Thus, virtually, the Executing Court is recovering the total awarded amount each from the petitioners/J.D.R.Nos.3 and 4. The same is impermissibre. The same is in violation of the procedure laid down under the Contract Act, Chit Funds Act and also the principle laid down by this Court in the c.R.p.No.1237 0f 2024. decn.Led. ot 03.05.2024 t KL,J C.R.P.No 933 of 2O25 t3 aforesaid Judgments. Therefore, the impugned orders are liable to be set aside and it is accordingly set aside' It is also relevant to note that Section 60 of C'P C' 15. deals with the property liable to attachment and sale in execution of decree. Section 60(i) and (ia) of C-P'C' is relevant and the same are extracted hereunder: "i) salary to the extent of [the hrst [one thousand rupeesl] and two third of the remainderl [in execution of any decree other than a decree for maintenance]: [Provided that where any part of such portion of the salary as is liable to attachment has been under attachment, whether continuously or intermittently, for a total period of twenty-four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months, and, where such attachment has been made in execution of one and the same decree' shall, after the attachment has continued for a total period of twenty-four months, be hnally exempt from attachment in execution of that decreel]' (ia) one-third of the salary in execution of any decree for maintenance " In the light of the same, on recovery of the entire L6. awarded amount along with interest arrd pendente lite KL,,] C R P.No.933 of 2O2S 14 interest, either the executing Court on its own or on the full satisfaction memo filed by respondent No. 1/DHr, the executing Court can terminate the tr.p. proceedings. There is no clarity with regard to the same in the impugned orders both dated 21.O3.2024. L7, During the course of hearing, learned counsel appearing for respondent No.1 failed to get instructions from respondent No. 1 with regard to the same.

18. Accordingly, the C.R.p. is allowed setting aside the impugned salary attachment orders, both dated 2L.O3.2024 in E.p.No.65 of 2024 in ARB.No. 163t of 2O2t passed by the principal Junior Civil Judge at Karimnagar and the matter is remanded back to the Executing Court with a direction to consider the aforesaid aspects, decide the Execution petition strictly in accordance with the procedure laid down under the Contract Act and also the principle laid down by this Court uide order, d.ated, O3.O5.2O24 in C.R.p.No. 1237 of 2024 and also the aforesaid Juclgments. No costs. KL,J C.R.P.No.933 of 2O25 l5 Asa sequel, the miscellaneous petitions, if any, pending in this Civil Revision Petition shall stand closed' //TRUE COPY// SD/- N. SRIHARI DEPUTY REGISTRAR t7 SEC N OFFICER To,

1. The Prl. Junror Civil Judge, Karimnagar Z. On" CC to SRl. C SRI HARI PRASAD Advocate [OPUC] 5. O;" CC to SRI. K S SAI PAVAN Advocate IOPUCI 4. Two CD CoPies '4- VSM/gh .s r4 16 (i o (-) 2 5 AUB 205 * € sl-'a rc rrE'l HIGH COURT DATED:21 103t2025 ORDER CRP.No.933 of 2025 ALLOWING THE CRP G 4ffaA X{-