The High Court · 2025

Petition under Section 151 CPC praying that in the crrcumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to condone the delay of (19) dad in filing the above C.R.P. filed against the EP NO. 303 OF 2024 in ARB No. 621 of 2021 . dated 22.11.2024 on the file of ttt'd Addt. Junior Civil Judge at Karimnagar. lA l{O: 3 OF 2025 Petition under Section '151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the attachment of salary dated 22.11.2024 in EP NO:303/2024 in Arb No. 621 of 2021 on the fite of lll'd Addt. Junior civil Judge at Karim nagar. Counsel for the Petitioner: Sri. Gudi Madhusudhan Reddy Counsel for the Respondents: None Appeared The Gourtrnade the following: ORDER TION'BLE SRI JUSTI E IC LAKSHMAN CIVIL REVISION PETI ON No.857 o8202s ORALORDER: Heard Mr, Gudi Madhus Reddy, leamed counsel for the petitioner. Despite service of noti , there is no rcPresentatlofl on behalf of respondent No-[. As Per cause-title, it is mentioned that respondent Nos.2 to 4 are not parties to the Present CRP.

2. This revision is filed under Section - 227 of the Constitution of India challenging the order dated .11.2024 passed in E.P. No.303 of 2024 in Arbitration Case No.62l of 2021 bY the III Additional Junior Civil Judge at Kari

3. On the application frled bY respondent No.l vrZe Arbitration ) Case ARB No.62l of 2021, the C t Arbitrator/DePutY Registrar of Chis, Warangal, had Passed an a dated 29.04.2024 directing the petitioner herein and resPondent s.2 to 4 to PaY an amount of Rs.2,18,959/- along with interest @ 18Y. per annum on the PrinciPal amount of Rs.1,81,644l- from the of filing the disPute till the date of realization jointly and severally They shall also PaY Rs.4,830/- towards costs ofthe arbitration P ItT:, 2 KL,J CR? No.867 of2025

4. Pursuant to the said award, respondent No.l herein had filed an execution petition vide E.p. No.303 0f 2024 in ARB No.62t of 2021 seeking execution of the said award against the petitioner herein and respondent No.3 for recovery of Rs.3,37,277/_ ftom them. Vide the aforesaid order, learned tII Additional Junior Civit Judge directed the Disbursing Officer of the petitioner and respondent No.3, to withhold the amount of Rs.3,37,277 /_ each fiom the monthly salary of the petitioner and respondent No.3 herein. They are judgment debtor Nos.2 and 3 in the said E.p. Respondent No.2 herein is the chit subscriber, while the petitioner herein and respondent Nos.3 and 4 are the guarantors for the subject chit.

5. It is contended bv learned counsel for the petitioner herein that the Executing Court did not order for proportionate deduction from judgment debtor Nos.2 and 3. Before passing the ordeq the Executing Court neither issued notice, nor provided opportunity of hearing.

6. It is als<l relevant to note that, it appears that leamed Exee uting Court issued similar order directing the Disbursing Offrcer ofjudgment debtor No.2 to rvithhold the said amount <tt Rs.3,37,277/_ from his salaries as per Section _ 60 ofCpC after deducting standard 3 KI.J CRf No t67ot2o25 deduction plus one thousand and 213 of rcmaining gross salarY and shall remit balance 1/3d of salary ev month from the date of receiPt of the warrant.

7. Thus, the Executing Court d rected the Disbursing Offrcer of judgment debtor No.2 and 3 to uct and recover the aforesaid amount from the salaries ofjudgmen debtor Nos.2 and 3 €ach. If the Disbursing Oflicer withholds the d amount and remits to the account of the aforesaid E.P., it amo to recovery of more than the awarded amount. Thus, the same is t violation of the Procedure laid down under Contract Act, the Chi Fund Act, 1982 and also the principle laid down bY this Co The said e$Pects werc not considered by the Executing Court white issuing imPugred salary attachment orders.

8. It is relevant to extract O r - XXI, Rules - 11 (2), a8 and 4EA of the CPC and the same are as *XXI Rule I I (2) of CPC- otherwise provided bY sub-rule,( execution o[ a decree shall be in tten application- Save as ), every apptication for the iting, signed and verified bY th€ applicant or by some other proved to the satisfaction of the Court to be acquainted with facts ofthe case, and shalt contain in a tabular form the follo ing particulars, namelY- (a) the number ofthe suit; 4 KI-,I CRP No E67 of2025 (b) the names of the panies; (c) the dare ofthe decr€e; (d) *.trether any appeal has been preferrcd from the decree; (e) whether any, and (ifany) what, payment or other adjustment of.the matter in controversy has been'made between the parties subsequently to the decree; (f) whether any, and (if any) whal previous applications have been made flor the execution of the decree, the dates of such applications and their rcsults; (g the amount wift interest (ifany) due upon lhe decrce, or other rclief granted thereby. together with particulars of any crossiecrce, whEther passed before or aftei the date of the decree sought to bc executed; (h) the amount ofthe cosrs (ifany) awarded; (i) the name of the person against whom execulion ol the decrcc is sought; and 0) the mode in which the assistance of the Court is required whether- sale without attachment, ol any property; (i). by the delivery ofany properry specifically decrccd; (tt) by the attachmenl, or by the anachmenr and salc. or bv thc -.... (iii)by the arrcst and detention in prison ofany person; (iv)by the appoinanent ofa receircr; (v) otherwise, as the nature of the rclief granted may rcquire.,, <Order XXI Rule 48 of CpC-Aftachment of salary or allowances of s€rvant of the Governmenl or railway company or locel authority.- (l) Where the propcrry to be attached is the salary or allowances oF a scrvant 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 Starc Act, or a Government company as defined in section (r l? ol.thc 5 KLJ CRP No 867 of2025 Companies Acl 1955 (l of I j udgment{ebtor or the disburs local limits of the Court's jun amount shall, subject to fte ] the Courg u4lether the officer is or is not within tlre ictior! may order that the visions o[ section 60, be withheld from such salary or al anc€s either in one PaYrnent or by monthly instalments as notice of the order to srrch Govemment may by notification Court may direct; and uPon ofEcer as the approPriate n the official Gazette appoint in this behale- (a) where srrch salary or allo nces are to be disbursed within the tmal limits to which extends, the officer or other this Code for the time being rson whose duty it is to disburse the same shall withho and rcmit to the Court the amount due under the order, o the monthly instalments, as the case may be; (b) where such salary or all are to be disbursed beyond the said limits, thc o those limits whose duty it r or other person within to instruct the disbursing authority regarding the amoun o[ the salary or allowances to be disbursed shall remit t the Court the amount due under the order, or the monthly instalments, as the case maY be, and shall direct the dis ing authority to reduce the aggregate o[ the amounts from ime to time, to be disbursed by the aggregate of the amou from time to time remifted to the Court. (2) Where the aflachable proport of such salary or alkcwanoes is already being withheld and itted to a Court in pursance of a previous and unsatisfied r of attachmen{, the ofrrcer appointed by tlre appropriate vemrnent in this betralf shall l:+;'-'., _ i( :-Yq 6 Kl-, CRP No 867 of2025 forthwith rctum the subsequent order to the Court issuing it with a full staternent ofall the particulars ofthe exising attachment. (3) Every order madc under this rule, unless it is returned in accordance with the provisions of sub-rule (2) shall, without further notice or other procesg bind the appropriate Govemment or the railway company or local authority or corporation of Govemment company, as the €se may be, rvhile 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 ol the Stale or the funds of a railway company or local authority or or Govemment company in tndia; and the corporation Government or the railway company or local authority or cor.poration or Govemment company, as the case may be, shall be liable for any sum paid in contravention o[this rulc. appropriate Erplanation.-ln this means,- rule, "appropriate Govemment', (i) As respects any person in the service of the Central Government, or any servant of a railway administration or o[ a cantonment authority or of the port authority ofa major port, or 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 part of the share capital is held by the Central Government or by more than one Sl.ate Govemments or partly by the Central Govemment and partly by one or more Scate Covemments, the Central Govcmment: 1 KL.J CRP No 867 of2o25 (ii) As respects any other seflant of any other local or other corporation engaged in any established by a Provincial or t of the Governrnent, or a authority, or any servant ofa or industry which is act, or a servant of any other Govemment company, the State vemment." *Order - )O0, Rule - 48A. allowances of private employees. Attachment of salary or (l) Where the pmperty to be attached is the salary or allow of an employee other than an employee to whom rule 48 disbursing oflicer of the emPlo lies, the Court, where the is within the [ocal limits of the Court's jurisdictiorL may order the amount shall, subject to the proYision of section 60, be withheld from such salary or allowances either in one payment the Court may direct; and upon disbursing officer, such disburs court the amount due under or by monthly instalments as notice of the order to such offrcer shall remit to the order. or the monthly instalments, as the case may be. (2) Where the attachable portion atready being withheld or remi fsuch salary or allowances is to the Court in pursuance of a previous and unsatisFred order f attachment, the disbursing offrcer shall foahwith retum the issuing it with a fult statement ubsequent order to the Court of alt the padiculars of the existing attachment. (3) Every order made under this accordanc.e with the provisions further notice or other process, rule, unless it is retumed in f sub-rule (2), shall, without ind the employer while the judgmentdebtors, is within the t I timits to which this Code for the time being extends and if he is in ret€ipt of salary or a ile he is beyond those-limits, lowances payable out of the ri}}-; r 1:51: =i, 8 ru-J CRP No 867 of2025 funds of an employer in any part of Indi4 and the employcr shall be liable for any sum paid in contravention ofthis ruIe.,, 9 It is relevant to extract Section - 7l of the Chit Fund act, 1982 and the sarne is as under: *71. Money how recovered.-Every order passed by the Registrar or the nominee under section 6g or section 69 and every order passed by the State Govemment in appeal under section 70 for payment ofany money shall, ifnot carried out,_ (a) on a certificate issued by the Registrar, be d€emed to be a decree of a Civit Cour! and shall be executed in the same marner as a decree ofsuch CouG or (b) be executed in accordance with the provisions ofary law for the time being in force for the recovery ofamounts as arrears of Iand revenue: Provided thal no application l-or execulion under clause (b) shall be made after the expiry of three yea{s [rom the date fixed in the order, and ifno such date is fixed, from the date of the order."

10. It is also relevant to extract Sections _ 126, tzg and 146 ol the Indian Contract Act, lg72 andthe same is as under: "126. "Contract of guaraatee., .sureer", spritrcipal 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 guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called thc ,.principat debtor.,. and the 9 KL.J CRP No 857 ofX)25 person to whom the guarantee is ven is cal[ed the "creditod'. A guarantee may be either oral or "126. Surety's liability.-The extensive with that ofthe princi iabitity ot the surety is co- debtor, unless it is otherwise provided by the contract." "146. Co.sureties liable to cont bute equally.-Wlrere two or more persons are co-sureties for jointly or severally, and whethe the same debt or duty, either under the same or diffelent contractq and whether with or other, the co-sureties, in the the knowledge of each of any contract to the contrary, are liable, as between share of the whole debt, or o[ selves, to pay each an equal part of it which remains unpaid by the principal debtor."

11. Thus, the liability of the -surety is co-extensive with that of principal debtor unless it is o ise provided by the contract. The said principle was also laid d n by a Division Bench ol the High Court of Judicature for the tates of Telangana and Andhra Pradesh at Hyderabad in Punyam ula Venkata Viswa Sundara Rao v. M/s. Margadarsi Chit Fun PvL Ltd.t. 12- The aforesaid relevant visions would reveal that for realization of the amount cov under the arbitration award, respondent No. [ - decree holder has to file an application under Order 2017 (3) ALT 82 (D.8.) t \r \- ) t, . / ). .;.+{i l0 KL.J CRP No.867 of2025 - )Ofl Rule I I (2) of CpC. Accordingly, resporldent No.I had filed the aforesaid execwion petition vide E.p.No.l76 of 201g.

13. In Punyamurthula Venkata Viswa Sundara Raor, the Division Beneh of this €ourt orr (Dllsideration -ofl flie arguments advanced by the parties, franied the following nvo (02) poins for consideration: 1t. whether the decree holder has to proceed against all the judgment debtors, who are guarantors, by claimin:g propo(ionate amount decreed. whether the execution Courts in which E.ps. were filed against the present judgment debtors, Itho are revision petitiom herein, have jurisdiction to entertain the execution petitions.

14. 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 Regisrrar for execution, to be forwarded to the proper authority at the option of the decree hotder and the Registrar shall himsetf 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 It KL-J CR" No.E67 oa2025 option to proc€ed against e ither principal debtor or any of the guarantors or against all of them ferring to Section - 128 of the Indian Contract Acg ttre Division ch held that the liability of a surety is co-extemive with thx of e principal debtor unless it is otherwise provided by the contract.

15. In Madamanchi Anill ar v. Margadarshi Chit Fund PvL Limited,2 Division Bench of High Court of Andhra Pradesh at Hyderabad considering the said ciple laid down by the Division Bench in Punyamurthula Venkata Viswa Sundara Raor, held that liability of the sureties is joint and s veral. The Division Bench also negatived the contention raised b the petitioner thcrein that a Recovery Certifrcate -issued by the uty R€gistrar of Chits cannot be acted upon, as per Rule - 55 o the Andhra Pradesh Chit Fund Rules, 2008 and that an execution is tainable only if the recovery certificate has been issued by the R istrar of Chits to the competeflt Civil Court. 16- On consideration of aforesaid provisions afld on examination of the facs of the case erein, in Bandi Chandra Hari '. cRP No-2338 0fZOtE, d€cided or 05.1L2o t8 ;rF!'. ;ii.; -: ,' ,w# t2 KL,J CRP No 867 of m25 v. Brindavan Chits Karimnagar lndia private Limited3, this Court held that respondent No.l - decree-holder cannot recover double the awarded amount from the petitioner - judgment debtors, and it is entitled for the decreta[ amount and interest includi ng pendent lite interest as claimed by it from the judgment debtors.

17. Normally, on realization of the decretal amount, costs and pendent /ire interest, respondent No,l - decree_holder shall file a full_ satisfaction memo before the Executing Court with a request to terminate the proceed ings in the subject Ep. If respondent No.l fails to file such satisfaction memo, Executing Court can terminate the execution proceedings in the Ep on its own.

18. [n view of the aforesaid discussion and observation, the present Civil Revision petition is disposed of directing the Executing Court to fo[low the procedure laid down under the Indian Contract Act and principle laid down in the aforesaid judgments. tn the circumstances of the case, there shall be no order as to costs. '. CRP No-t2lz of2024, decidcd on 01.05.2024 l3 KL,J CRP No E67 of202t As a sequel thereto, miscellan us petitions, if any, pending in this revision shall stand closed. SD/.V.KAVITHA o PUTYREGISTRAR /ffRUE C PYII SECTION OFFICER To,

1. The lll'd Addl. Junior civil Judge at rim nagar

2. One CC to Sri. Gudi Madhusudhan R dy Advocate IOPUC]

3. Two CD CoPies MKN/PSL F L I I t I I i HIGH COURT DATED:2810312025 ORDER CRP.No.867 of 2025 .':::\ rSE. ,i. (\ 1 \ e-) i) () \..'. 11 AIJE zffi I) r- - A.I (-, (( > o -a- DISPOSING THE CIVIL REVISION PETIT]ON. o6 k-,K