✦ High Court of India · 22 Apr 2025

The High Court · 2025

Case Details High Court of India · 22 Apr 2025
Court
High Court of India
Decided
22 Apr 2025
Length
1,238 words

M/s. Srinidhi Chits (Hvderahad) Pvt_Ltd.,, Rearesented by its Foreman, Sr. S Karnakar. S/o.Samin6 Rao, Age. 37 y";;", Fio.G;iriiagar or the above chit fund. I lA NO: 1 OF 2025 Petition under Section 15 l CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to Stay the EP.NO.319 OF 2024 lN ARB.NO,232 OF 2023dated 22-11-2O24on the file of I Addl Junior Civil Judge at Karimnagar pending disposal of the CRP. ...Respondent Counsel for the Petitioner(s):SRl. K BUCHI BABU Counsel for the Respondents: The Court made the following: ORDER HON'BLE SRIJUSTICE I( LAKSHMAN CTVIL REVISION PETITION No.1052 OF 202s ORDER: Heard Mr. K. Buchi Babu, leamed counsel for the petitioners _ Judgment Debtors. Despite service of notice on the respondent _ decree holder, there is no representation on its behalf.

2. The petitioners herein fited the present revision challenging the order dated,22.11.2024 passe<I by leamed I Additional Junior Civil Judge, Karimnagar (for short '[rxecuting Court,) in E.p. No.3l9 of 2014 in Arb. No.232 of2023.

3. The petitioners herein are judgment debtors, while the respondent is the decree-hotder in E.p. No.3l9 of2024.

4. On the application filed by thc respondent under Section _ 64 of the Chit Fund Acr, vide Arbitration Case ARB No.232 of 2023, the Chit Arbitrator/Deputy Registrar ol Chits, Karimnagar had passed an award dated 29.04.2024 directing the petitioners herein to pay an amount of Rs.4,44,02|i- along with interest @ lgo% per annum on the principal amount of Rs.3,98,258/- lrom the date of filing the dispute (i.e.,21.04.2023) till rhe dare of realizarion jointly and severally. I I I i I t. l, I I i I I I z KI-,J CRP No 1052 oI2025 I \

5. Pursuant to the said award, the respondent herein had filed an execution petition vide E.p. No.319 of )OZC in ARB No.232 of 2023 for realization of the award amount against petitioner Nos.2 to 5 herein for Rs.5,66,496l-. Vide order d,ated 22.11.2024, leamed Executing Court issued warrants against petitioner Nos.2 to 5 through Court and registered post with acknowledgment due on payment of process. Challenging the said order, dared 22.11.2024, the petitioners filed the present revision on the following grounds: i) The respondent without obtaining recovery certificate from the Deputy Registrar of Chits under Section - 7l of the Chit Funds Acr, 1982, filed the afbrcsaid E.p.; and ii) Leamed Executing Court without fbllowing the said mandatory procedure, numbered E.p. and issued attachment of salary warrants.

6. In view of the specific plea taken by teamed counsel for the petitioner that the decree holder without obtaining recovery certificate as required under Section - 71 of the chit Fund Act, filed the aforesaid E.P. before the Executing Court, vide order dared I 1.04.2025, this Cou(, directed the Registry to call for original record in E.p. No.3 19 \ , KL.J CRP No 1052 ot2025 of 2024. Pursuant to the same, this Court received the original record from the Executing Court

7. Perusal of original record would reveal that the decree holder made an application dated 30.07.2024 to the Deputy Registrar of Chits, Karimnagar, to issue Recovery Certificate against the judgment debtors in ARB No.232 o12023 to execute the same before the Civil Court. On receipt of the said representation, the Chit Arbitrator had issued Recovery Certificatc as required under Section - 71 (a) of the Chit Fund Act on 21.08.2024 under Rule - 55 (2) of the Telangana Chit Fund Rules, 2008. As pcr thc said recovery certificate, in case of default of payment of the awarded amount with interest, it was ordered to be recovered by the sale of movable or immovable properties or by attachment of salaries belong to the opponents or by any other mode as per law. In the said recovery certificate, the costs ol the suit is shown as Rs.l1,250/-. Thereafteq vide letter bearing No.CF/ARB/232/2023, dated 09.09.2024, the Deputy Registrar of Chits, Karimangar forwarded the said Recovery Certificate along with application ol Foremen of the decree holder to the Executing Court / I I I 4 KL,J CRP No 1052 ot2025

8. Perusal of record would also reveal that the Executing Court received the said Recovery Certificate ot 18.09.2024. Thereafter, the decree holder filed the aforesaid E.P. 319 of 2024 before the Executing Court on 13.11.2024 for realization of decretal amount along with interests and costs to a hrne of Rs.5,66,496/- seeking salary attachment of judgment debtor Nos.2 to 5. In the said E,.P., judgment debtor No.l made his appearance through an Advocate by filing vakalat on 19.02.2025. Vide order dated 22.11.2024, the Executing Court issued warrants of salary attachment against judgment debtor Nos.2 to 5.

9. In view of the above, it is clear that on reccipt of recovery certificate from the Deputy Registrar of Chits, Karimnagar. as required under Section - 7l of the Chit Fund Act on filing the E.P. by the decree holder only, the Executing Court proceeded with further, and thereafter issued warrants of atlachment ol salaries of judgment debtor Nos.2 to 5. Thus, the contention of leamed counsel for the judgment debtors that the decree holder did not obtain recovery certificate as required under Section - 71 of the Chit l"und Act and that the fxecuting Court without following the mandatory procedure, 5 KL,J CRP No 1052 of2025 accepted the execution petition and proceeded further in issuing warrants of attachment of salaries of judgment debtor Nos.2 to 5 is unsustainable. Thus, the .iudgment debtors failed to make out any ground to interfere with the impugred order dated 22.11.2024. Therefore, the revision fails and the same is liable to be dismissed.

10. The present Civil Revision Petition is accordingly dismissed. However, in the circumstances of the qrse, there sha[ be no order as to costs. As a sequel thereto, miscellaneous petitions, if any, pending in the revision shall stand closed. //TRUE COPY// SD/- T. JAYASREE ,/ DEPUTY REGIFTRAR #.;y[*qg Nryat// To,

1. The I Addl Junior Civil Judge at Karimnagar. 2. One CC to SRl. K BUCHT BABU, Advocate [OpUC] 3. Two CD Copies ANV/gh Yt- \: \ o q 3t ,1! S I;1 ;6 (/. . s ll,lL zffi i: 'l t D^<, ._,- . )-/ .' t, -t' HIGH COURT DATED:2210412025 ORDER CRP.No.1052 of 2O25 DISMISSING OF THE CIVIL REVISION PETITION {) X{"

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