The High Court · 2025

1. Srinidhi Chits (Hyderab"g)^tyt, Ltd,, Rep by its Foreman, Sri. S. Karnakar S/o 2. Bandi Rajesh, s/o sl^rn1,g,g?h. ngeo aoout...iBlr==lt rl?"m*X"dli: FHJ:1-:?:,9:,9 r zos, o)o iS'G;"6 il ff;p; rr i,. aro H J,rol z+tz j6,'n!r,"r, IA NO: 20F 2025 ...Respondent Petition under Section 151 cpc praying that in the circumstances stated in the,affidavit flled in support_of the peiitio;, if," ff igt Court may O" pL".Jl" stay all proceeding further in E.p. No. 306 oi 2024 iated 12-11-ioz+1,. tt.-nr" of Honourable llnd AdCl 'Junior Civil Judge at Karimnagar issuing order to attach salary of Public offic<:r F"; ;;*;;t oin"'ir*'v" comp"anv or Local authority' of J.D.F{ No. 2 to 6 i€' p"titil"lt iii""in'aitptj"'r of ihe'present rl R'P in the interest of justice. Counsel for the Petitioners: Mr' Sourabh Agarwal Counsel for the Respondents: None Appeared The Court made the following: ORDER :ri I I I I I 1 I I ; I l i I I I I I I I ! i (t HON'BLE SRIJUSTICE K. LAKSIIMAN CIVIL REVISION PETITIONNo.1271oF 2025 ORAL oRDER: Heard Mr.Sourabh Agarwal, Iearned counsel fbr the petitioners. Despite service of notice, there is no representation on behalf of respondent Nos. I and 2

2. This revision is filed under Section _ 227 of theConstitution of India challenging the order dated, 12.11.2024 passed in E.p. No.306 of 2024 in Arbitration Case ARB No.230 of 2023 by the principal Junior Civil Judge ar Karimnagar.

3. on the application filed by respondent No.l vde Arbitration Case ARB No.230 of 2023, the Chit Arbitrator/Deputy Registrar of Chits, Warangal, had passed an award dated,29.04.2024 directing the petitioners herein and respondent No.2 to pay an amount of Rs.3,88,760l- along with interest @ l}%per arnum on the principal amount of Rs.3,43,943l- from the date of filing the dispute till the date of realization jointly and severally. They shall also pay Rs.9,7g0l_ towards costs ofthe arbitration proceedings.

4. Pursuant to the said award, respondent No.l herein had filed an execution petition vide E.p. No.306 of 2024 in ARB No.230 of 2 KI J CRt'N(,.867 of2025 2023 seeking exer:uti'rn of the said award against the petitioners herein and resporrdent l'1o.2 tbr recovery of Rs'4'19'745/- from lhen:^' Vide the aforesaid crder, leamed Principal Junior Civil Ju'lge' at Karimnagar, dire cterl the Disbursing Officers of the petitioters and respoudent N,:.2. to withhold the amount of Rs'4'19'745/- each from the monthly salrry of the petitioners and respondent No 2 herein' They are juclgm':nt debtors Nos'1 to 6 in the said E'P' Reiipondent No.2 herein is tlLt: chit subscriber, while the petitioners hereirl are the guarantors lor the strbjcct chit'

5. lt is contended by leamed counsel for the petitione'rs herein that the Executing Court did not order for proportionate rleduction from iudgment ,lebtors' Before passing the order' the Executing Coutl neither issucd n olice, nor provided opportunity of hearing'

6.Itisalsorelevanttonotethat,itappearsthirtlearned Executing (lotut issued similar orders direCting the [')isbursing Officers of the pet.itioners and respondent No'2 to withholrl the said amount of R-s.4, 19.7451- from salaries of the petitioners 7 Thus, thr: Bxecuting Court directed the Disbursinl3 Officers of judgmenr- debtors to deduct and recover the aforesaid amounl from 16e[1 s6131i115 :,:Lcll. If the Disbursing Officer withholdsr the said k*-" :':I&r'&:' ',:,' I -:-...:-q7"r- r I I / I ; I t'; J KL,J CRP No.867 of202s amount and remits to the account of the aforesaid E.p., it amounts to recovery of more than the awarded amount. Thus, the same is in violation of the procedure laid down under Contract Act, and also the principle laid down by this Court. The said aspects were not considered by the Executing Court while issuing impugned salary attachment orders.

8. It is relevant to extract Order _ XXI, Rules _ Il (2), 4g and 48A of the CpC and the same are as under: ',XXI Rule lI (2) of CpC_Written application- Save as otherwise provided by sub_rule(l), every application for the execution ofa 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; (b) the names of the parties; (c) the date of the decree; (d) whether any appeal has been preferred from the decree; !"1.$*:l any, and (if any) what, paymenr or other adjustment or,the matt€r in controversy has been made between the parties subsequently to the decree; (f) 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; _--__-_-----+a- drcc-- 4 LLI LlltP No 867 of1025 (g) the rrncunt with interest (if any) due,upon l[,j:t:t": "t lit., retiet granted thereby' losether with particulars ol arry #. il;,,.'i;",h"' pa"sea blfo'e or after the date of the decree sought tc' be executed; (h) the amount ofthe costs (if any) awarded; (i) the namr: of lhe person against whom execution of the decre<: is:.otltslll: anl (i) the morl: in which the assistance of the Court is requirecl wh ethe r- sale * ithout attachment. olany prope(y; , ir hv lhe delivery ofany property specifircally decreedl. ,ii, f', ,r. ar.actrment. or by the attachment and sale' or by In' riiilhr tl e arrest and detention in prison olany person: rirrf,v tlt. anpointment ofa receiver: i;)':,ih".*i;. as the nature of the relief granted may requtre' "Ortle r KXI ltule 48 of CPC-Attachment of salarl' or alloll'anccs of servant of the Government or raihvlty company or local authority - (1) Where the properly to he attachrd i:; the salary or allowances of a servant of t te Goverru.nt:nt cr of a servant of a railway company or lo<ral authot'it1' cr of a servant of a corporation engaged in any trade or i11flusr.11' 'rhich is established by a Central' Provincial or Stl:'te Act. ()r i1 (ior.ernment company as defined in section 617 of thc Oompani:s r\ct, 1956 (1 of 1956)l the Court' whether 'he j udgroelll- lebtor or the disbursing officer is or is not within lhe local linLits of the Court's jurisdiction, may order that lhe amotint shall, subject to the provisions of section 60, be r.rrithheld fion, such salary or allowances either in one paymr:nt or b1' m rnthly instalments as the Court may direct; and u1:'on notice ol the order to such officer as the appropnate {iovonuront may by notification in the Offrcial Gazette appcint in ths hirtLall,- l{I*K:,&,: ..*,r. .*,' ( 5 KL,J CRP No.867 of2025 (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 of,ficer 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 ofsuch salary or allowances is already being withheld and remitted to a Court in pursuance of a previous and unsatisfied order of attachment, the officer appointed by the appropriate Government in this behalf shall forthwith retum the subsequent order to the Court issuing it with a full statement ofall the particulars of the existing attachment. (3) Every order made under this rule. unless it is rerumed in accordance with the provisions of sub_rule (2) shall, without further notice or other process, bind the appropriate Govemment or the railway company or local authority or corporation of Government company, as the case may be, while the judgment_ deblor 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 ( 6 K -,J CRP 1.o.867 of2025 receipt of any salary or allowances payable out of thB Consolidated l;und of India or the Consolidated Fund of th': State cr tte fLrnds of a railway company or local authoritl' or or Government company C ovemment or the railwaY c,lrporation or Govemment company, as the cat;e authoritY,rr may be. slLill be liable for any sum paid in contravention of th s in India; and company or corporatloll appropriat,: loc rl rule. Exptunation.-In this rule, "appropriate Govemmen t" means.- (i) A:i rerspeots any person in the service of the Centlal Governmt:ttt, or any servant of a railway administration or o1 a cantorrment authority or of the port authority ofa major pofi' lr any s(rrvant of a corporation engaged in any trade or indusl ry rthich is t:stablished by a Central Act, or any servant of a Ciovernm:trt company in which any part of the share capital is held b1' .fLe Central Govemment or by more than one Sti'Lte (iovernmeirts or partly by the Central Govemment and partly oy one or mole State Governments, the Central Govemment; (ii) lr.s respects any other servant of the Govemment' or a servant of any other local or other authority, or any servant c f a corporati:rrt engaged in any trade or industry which is ostablish:rl by a Provincial or State act, or a servant of any other ( lovemn r nt company- the State Govemment." "Ortler . XXI, Rule - 48A. Attachment of salary or irllowanr:cs of private employees.- (l) Where the property tc be attached is the salary or allowances of an employee other tlran zrn ernpl lyee to whom rule 48 applies, the Court, where Lhe rlisbursirLg, officer of the employee is within the local limits of *Fx*ttc'*r*.t*t*-t t':.1*:'.!F""?:-":--- _ ( 7 KL,J CRP No.E67 of2025 the Court's jurisdiction, may order than the amount shall, subject to the provision 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 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 fo(hwith return the subsequent order to the Coun issuing it with a full statement of all the particulars of the existing attachment. (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, hind the employer while the judgment-debtors, is within the local limits to which this Code for the time being extends and while he is beyond thoseJimits, if he is in receipt of salary or allowances payable out of the funds of an employer in any part of India, and the employer shall be liabte for any sum paid in contravention ofthis ruIe.,, 9 It is relevant to extract Section - 71 ofthe Chit Fund Act, 1982 and the same is as under: "71. Money how recoyered._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, if not carried out,_ -,t&ryrtr .rttf I l I i 8 }..L,J CR P l'Jo.867 o12025 6 (a) on a r:erlificate issued by the Registrar, be deemed to be a decree cf a Civit Court, and shall be executed in the same manler t s a tlecree of such Court, or (b) be er.ecuted in accordance with the provisions of any lau for the time being in force for the recovery of amounts as arrears of land re,,,: rue; Provided that no application for execulion under clause (b) shall be made after the expiry of three ydars from the date fixe d in the order, and if no such date is fixed' from the date of the or der." It is rrlso relevant to extract Sections - 126, 128 and 146 of

10. the Indian C,lntlact Act, 1872 and the same is as under: "126. "Crntract of guarantee", "surety", "principal dcbtor" antl "crtrtlitor". A "contract of guarantee" is a contract to perform lhe F,romise, or discharge the liabitity' of a third perscn in case cf his defautt. The person who gives the guarantee is callecl th,: "5rrrety"l the person in respect of whose default the Eluarante(: is givcn is called the "principal debtor"' anrl lhe person to ,vhom the guarantee is given is called the "creditor" A guarErnteo may be either oral or written " "128, Srrrefv's liability.-The liabitity of the surety is r:o- oxtensi\1r with that of the principal debtor, unless it is otherv ise prov'ded l)y the contract." "146. Co-suneties liable to contribute equally'-Where tw(l or 'nore persions are co-sureties for the same debt or duty, either .lointly c,r severally, and whether under the same or diffe'ent Jontractrj. arLd whether with or without the knowledge of elch cther, the co-sureties, in the absence of any contract to the \-*--1i6*e. F*&qxg{rsragr:lxx:liar"'"': "txtewt;i*xlw-.{x -_ ., - .*,-trrr4 9 KL.J CRP No.867 of202s contrary, are liable, as between themselves, to pay each an equal share of the whore debt, or of that part of it which remains unpaid by the principal debtor.,, I I ' Thus, the liabirity 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 Pradesh at Hyderabad in punyamurthula Venkata Viswa Sundara Rao v. M/s. J\largadarsi Chit Fund pvt. Ltd.r.

12. The aforesaid relevant provisions would reveal that for realization of the amount covered under the arbitration award, respondent No. 1 _ decree holder has to frle an application under Order - XXI Rule 1l (2) of CpC. Accordingly, respondent No.l had filed the aforesaid execution petition vide E.p.No.30 6 of 2024.

13. In punyamurthula Venkata yiswa Sundara Raor, the Division Bench of this Court on consideration of the arguments advanced by the parties, framed the following two (L2)points for consideration: '. zor z 1:; nLr tz io.n.; lta'iilttr: t0 (Ll CRP Nr 861 0f2025 h 1

11. whethel the decree holder has to proceed against all the judgment debtors, who are guarantors' by claiming' prollortir)nate amount decreed' lghether the execution Courts in which E Ps rvere filed againsl rhe' present judgment debtors' who arc' revisiotL jurisdiction to entertain thi) petitionrl herein, have exercution Petitions'

14. On consideration of the provisions of the Chit l;und Act and the CIPC, th: Division Bench held that the recourse that has to be followed by the d ecree holder is to make an applicatio n to the Registrar for ex:cution, to be lorwarded to the proper author ity at the option of thrl drl(rree holder and the Registrar shall himself issue the cerlificate and l':rrvard the said application to the Court oi revenue authority, as chrsetr by the decree holder' The decree holder has an option to procred against either the principal dcbtor or any of the guarantors or against alt of them' Refening to Section - r28 of the Indian Contrat:t A-ct, the Division Bench held that the lia:iiity of a surety is co-c:<r.en.sive with that of the principal debtor trnless it is otherwise pror ide'C by the contract' I KL,J CRPNo.867 of2o25

15. In Madamanchi Anill Kumar v. Margadarshi Chit Fund Pvt. Limited,2 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 Suudara Raor, held that 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 certificate has been issued by the Registrar of Chits to the competent Civil Court.

16. On consideration of the aforesaid provisions and on examination of the facts of the case therein, in Bandi Chandra Hari v. Brindavan Chits Karimnagar India private Limited3, this Court held that respondent No.1 _ decree_holder cannot recover double the awarded amount from the petitioners _ judgment debtors, and it is entitled for the decretal amount and interest including pendent lite interest as claimed by it from the judgment debtors. ( '. CRp No.2J38 of20 t8, decided on ()5. t I.20 tE '. URP No.l237 o f 2024. decided on 03 .05 .2O24 -l t2 K ,,J CRi'N ).867 of2025

17. As per Section - 60 of CPC after deducting ';tandard deduction plus one thousand and 213'd of remaining gross sa1ary and shall remit balanr:.: 1/3'd of salary every month from the date olreceipt of the wa1'ran1..

18. Normally. on realization of the decretal atnount' costs and pendent /l/e intcr'ost, respondent No' 1 - decree-holder shall fi te a fult- satisfaction rnerno before the Executing court with a request to terminate the pr,ller:dings in the subject EP' If respondent I'lo' 1 fails to hle such satisfaction memo, Executing Court can term Lnate the execution proce,:rJirLgs in the EP on its own'

19. In vit:w of the aforesaid discussion and observrtion' the present (livil Rr:'rision Petition is disposed of directing thc l ixecuting Courl to foll,rw tee procedure laid down under the Indian Corrtract Act and principle tai,C down in the aforesaid judgments ln the circumstancr:s c'f the case, there shall be no order as to costs' As a seq''rel thereto, miscellaneous petitions' if any' pending in this revision shrll stand closed' /ffRUE COPY// SO/.MOHD OEPUTY REG .ISMAIL TSTRAR SECTION OFFICER To, 1 2 J Twq CD CoPies . lH ?3 ?f ,i:i fJ,1l' i!:ii; l'^[Xll]"13nril"' r w kami gh ,x *- - --jia'a:i:1;:*3d5&;r',;- !&--'*- HIGH COURT DATED:25104t2025 ORDER CRP.No.1271 ot 2025 ',../ i,' ,.., t, L \, i, _\i. DISPOSING OF THE CIVIL REVISION PETITION

1. a-l ei' Ifi "ts s Q)s : -",/ *j :, 1 I l1

1. Srinidhi Chits (Hyderab"g)^tyt, Ltd,, Rep by its Foreman, Sri. S. Karnakar S/o 2. Bandi Rajesh, s/o sl^rn1,g,g?h. ngeo aoout...iBlr==lt rl?"m*X"dli: FHJ:1-:?:,9:,9 r zos, o)o iS'G;"6 il ff;p; rr i,. aro H J,rol z+tz j6,'n!r,"r, IA NO: 20F 2025 ...Respondent Petition under Section 151 cpc praying that in the circumstances stated in the,affidavit flled in support_of the peiitio;, if," ff igt Court may O" pL".Jl" stay all proceeding further in E.p. No. 306 oi 2024 iated 12-11-ioz+1,. tt.-nr" of Honourable llnd AdCl 'Junior Civil Judge at Karimnagar issuing order to attach salary of Public offic<:r F"; ;;*;;t oin"'ir*'v" comp"anv or Local authority' of J.D.F{ No. 2 to 6 i€' p"titil"lt iii""in'aitptj"'r of ihe'present rl R'P in the interest of justice. Counsel for the Petitioners: Mr' Sourabh Agarwal Counsel for the Respondents: None Appeared The Court made the following: ORDER :ri I I I I I 1 I I ; I l i I I I I I I I ! i (t HON'BLE SRIJUSTICE K. LAKSIIMAN CIVIL REVISION PETITIONNo.1271oF 2025 ORAL oRDER: Heard Mr.Sourabh Agarwal, Iearned counsel fbr the petitioners. Despite service of notice, there is no representation on behalf of respondent Nos. I and 2

2. This revision is filed under Section _ 227 of theConstitution of India challenging the order dated, 12.11.2024 passed in E.p. No.306 of 2024 in Arbitration Case ARB No.230 of 2023 by the principal Junior Civil Judge ar Karimnagar.

3. on the application filed by respondent No.l vde Arbitration Case ARB No.230 of 2023, the Chit Arbitrator/Deputy Registrar of Chits, Warangal, had passed an award dated,29.04.2024 directing the petitioners herein and respondent No.2 to pay an amount of Rs.3,88,760l- along with interest @ l}%per arnum on the principal amount of Rs.3,43,943l- from the date of filing the dispute till the date of realization jointly and severally. They shall also pay Rs.9,7g0l_ towards costs ofthe arbitration proceedings.

4. Pursuant to the said award, respondent No.l herein had filed an execution petition vide E.p. No.306 of 2024 in ARB No.230 of 2 KI J CRt'N(,.867 of2025 2023 seeking exer:uti'rn of the said award against the petitioners herein and resporrdent l'1o.2 tbr recovery of Rs'4'19'745/- from lhen:^' Vide the aforesaid crder, leamed Principal Junior Civil Ju'lge' at Karimnagar, dire cterl the Disbursing Officers of the petitioters and respoudent N,:.2. to withhold the amount of Rs'4'19'745/- each from the monthly salrry of the petitioners and respondent No 2 herein' They are juclgm':nt debtors Nos'1 to 6 in the said E'P' Reiipondent No.2 herein is tlLt: chit subscriber, while the petitioners hereirl are the guarantors lor the strbjcct chit'

5. lt is contended by leamed counsel for the petitione'rs herein that the Executing Court did not order for proportionate rleduction from iudgment ,lebtors' Before passing the order' the Executing Coutl neither issucd n olice, nor provided opportunity of hearing'

6.Itisalsorelevanttonotethat,itappearsthirtlearned Executing (lotut issued similar orders direCting the [')isbursing Officers of the pet.itioners and respondent No'2 to withholrl the said amount of R-s.4, 19.7451- from salaries of the petitioners 7 Thus, thr: Bxecuting Court directed the Disbursinl3 Officers of judgmenr- debtors to deduct and recover the aforesaid amounl from 16e[1 s6131i115 :,:Lcll. If the Disbursing Officer withholdsr the said k*-" :':I&r'&:' ',:,' I -:-...:-q7"r- r I I / I ; I t'; J KL,J CRP No.867 of202s amount and remits to the account of the aforesaid E.p., it amounts to recovery of more than the awarded amount. Thus, the same is in violation of the procedure laid down under Contract Act, and also the principle laid down by this Court. The said aspects were not considered by the Executing Court while issuing impugned salary attachment orders.

8. It is relevant to extract Order _ XXI, Rules _ Il (2), 4g and 48A of the CpC and the same are as under: ',XXI Rule lI (2) of CpC_Written application- Save as otherwise provided by sub_rule(l), every application for the execution ofa 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; (b) the names of the parties; (c) the date of the decree; (d) whether any appeal has been preferred from the decree; !"1.$*:l any, and (if any) what, paymenr or other adjustment or,the matt€r in controversy has been made between the parties subsequently to the decree; (f) 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; _--__-_-----+a- drcc-- 4 LLI LlltP No 867 of1025 (g) the rrncunt with interest (if any) due,upon l[,j:t:t": "t lit., retiet granted thereby' losether with particulars ol arry #. il;,,.'i;",h"' pa"sea blfo'e or after the date of the decree sought tc' be executed; (h) the amount ofthe costs (if any) awarded; (i) the namr: of lhe person against whom execution of the decre<: is:.otltslll: anl (i) the morl: in which the assistance of the Court is requirecl wh ethe r- sale * ithout attachment. olany prope(y; , ir hv lhe delivery ofany property specifircally decreedl. ,ii, f', ,r. ar.actrment. or by the attachment and sale' or by In' riiilhr tl e arrest and detention in prison olany person: rirrf,v tlt. anpointment ofa receiver: i;)':,ih".*i;. as the nature of the relief granted may requtre' "Ortle r KXI ltule 48 of CPC-Attachment of salarl' or alloll'anccs of servant of the Government or raihvlty company or local authority - (1) Where the properly to he attachrd i:; the salary or allowances of a servant of t te Goverru.nt:nt cr of a servant of a railway company or lo<ral authot'it1' cr of a servant of a corporation engaged in any trade or i11flusr.11' 'rhich is established by a Central' Provincial or Stl:'te Act. ()r i1 (ior.ernment company as defined in section 617 of thc Oompani:s r\ct, 1956 (1 of 1956)l the Court' whether 'he j udgroelll- lebtor or the disbursing officer is or is not within lhe local linLits of the Court's jurisdiction, may order that lhe amotint shall, subject to the provisions of section 60, be r.rrithheld fion, such salary or allowances either in one paymr:nt or b1' m rnthly instalments as the Court may direct; and u1:'on notice ol the order to such officer as the appropnate {iovonuront may by notification in the Offrcial Gazette appcint in ths hirtLall,- l{I*K:,&,: ..*,r. .*,' ( 5 KL,J CRP No.867 of2025 (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 of,ficer 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 ofsuch salary or allowances is already being withheld and remitted to a Court in pursuance of a previous and unsatisfied order of attachment, the officer appointed by the appropriate Government in this behalf shall forthwith retum the subsequent order to the Court issuing it with a full statement ofall the particulars of the existing attachment. (3) Every order made under this rule. unless it is rerumed in accordance with the provisions of sub_rule (2) shall, without further notice or other process, bind the appropriate Govemment or the railway company or local authority or corporation of Government company, as the case may be, while the judgment_ deblor 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 ( 6 K -,J CRP 1.o.867 of2025 receipt of any salary or allowances payable out of thB Consolidated l;und of India or the Consolidated Fund of th': State cr tte fLrnds of a railway company or local authoritl' or or Government company C ovemment or the railwaY c,lrporation or Govemment company, as the cat;e authoritY,rr may be. slLill be liable for any sum paid in contravention of th s in India; and company or corporatloll appropriat,: loc rl rule. Exptunation.-In this rule, "appropriate Govemmen t" means.- (i) A:i rerspeots any person in the service of the Centlal Governmt:ttt, or any servant of a railway administration or o1 a cantorrment authority or of the port authority ofa major pofi' lr any s(rrvant of a corporation engaged in any trade or indusl ry rthich is t:stablished by a Central Act, or any servant of a Ciovernm:trt company in which any part of the share capital is held b1' .fLe Central Govemment or by more than one Sti'Lte (iovernmeirts or partly by the Central Govemment and partly oy one or mole State Governments, the Central Govemment; (ii) lr.s respects any other servant of the Govemment' or a servant of any other local or other authority, or any servant c f a corporati:rrt engaged in any trade or industry which is ostablish:rl by a Provincial or State act, or a servant of any other ( lovemn r nt company- the State Govemment." "Ortler . XXI, Rule - 48A. Attachment of salary or irllowanr:cs of private employees.- (l) Where the property tc be attached is the salary or allowances of an employee other tlran zrn ernpl lyee to whom rule 48 applies, the Court, where Lhe rlisbursirLg, officer of the employee is within the local limits of *Fx*ttc'*r*.t*t*-t t':.1*:'.!F""?:-":--- _ ( 7 KL,J CRP No.E67 of2025 the Court's jurisdiction, may order than the amount shall, subject to the provision 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 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 fo(hwith return the subsequent order to the Coun issuing it with a full statement of all the particulars of the existing attachment. (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, hind the employer while the judgment-debtors, is within the local limits to which this Code for the time being extends and while he is beyond thoseJimits, if he is in receipt of salary or allowances payable out of the funds of an employer in any part of India, and the employer shall be liabte for any sum paid in contravention ofthis ruIe.,, 9 It is relevant to extract Section - 71 ofthe Chit Fund Act, 1982 and the same is as under: "71. Money how recoyered._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, if not carried out,_ -,t&ryrtr .rttf I l I i 8 }..L,J CR P l'Jo.867 o12025 6 (a) on a r:erlificate issued by the Registrar, be deemed to be a decree cf a Civit Court, and shall be executed in the same manler t s a tlecree of such Court, or (b) be er.ecuted in accordance with the provisions of any lau for the time being in force for the recovery of amounts as arrears of land re,,,: rue; Provided that no application for execulion under clause (b) shall be made after the expiry of three ydars from the date fixe d in the order, and if no such date is fixed' from the date of the or der." It is rrlso relevant to extract Sections - 126, 128 and 146 of

10. the Indian C,lntlact Act, 1872 and the same is as under: "126. "Crntract of guarantee", "surety", "principal dcbtor" antl "crtrtlitor". A "contract of guarantee" is a contract to perform lhe F,romise, or discharge the liabitity' of a third perscn in case cf his defautt. The person who gives the guarantee is callecl th,: "5rrrety"l the person in respect of whose default the Eluarante(: is givcn is called the "principal debtor"' anrl lhe person to ,vhom the guarantee is given is called the "creditor" A guarErnteo may be either oral or written " "128, Srrrefv's liability.-The liabitity of the surety is r:o- oxtensi\1r with that of the principal debtor, unless it is otherv ise prov'ded l)y the contract." "146. Co-suneties liable to contribute equally'-Where tw(l or 'nore persions are co-sureties for the same debt or duty, either .lointly c,r severally, and whether under the same or diffe'ent Jontractrj. arLd whether with or without the knowledge of elch cther, the co-sureties, in the absence of any contract to the \-*--1i6*e. F*&qxg{rsragr:lxx:liar"'"': "txtewt;i*xlw-.{x -_ ., - .*,-trrr4 9 KL.J CRP No.867 of202s contrary, are liable, as between themselves, to pay each an equal share of the whore debt, or of that part of it which remains unpaid by the principal debtor.,, I I ' Thus, the liabirity 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 Pradesh at Hyderabad in punyamurthula Venkata Viswa Sundara Rao v. M/s. J\largadarsi Chit Fund pvt. Ltd.r.

12. The aforesaid relevant provisions would reveal that for realization of the amount covered under the arbitration award, respondent No. 1 _ decree holder has to frle an application under Order - XXI Rule 1l (2) of CpC. Accordingly, respondent No.l had filed the aforesaid execution petition vide E.p.No.30 6 of 2024.

13. In punyamurthula Venkata yiswa Sundara Raor, the Division Bench of this Court on consideration of the arguments advanced by the parties, framed the following two (L2)points for consideration: '. zor z 1:; nLr tz io.n.; lta'iilttr: t0 (Ll CRP Nr 861 0f2025 h 1

11. whethel the decree holder has to proceed against all the judgment debtors, who are guarantors' by claiming' prollortir)nate amount decreed' lghether the execution Courts in which E Ps rvere filed againsl rhe' present judgment debtors' who arc' revisiotL jurisdiction to entertain thi) petitionrl herein, have exercution Petitions'

14. On consideration of the provisions of the Chit l;und Act and the CIPC, th: Division Bench held that the recourse that has to be followed by the d ecree holder is to make an applicatio n to the Registrar for ex:cution, to be lorwarded to the proper author ity at the option of thrl drl(rree holder and the Registrar shall himself issue the cerlificate and l':rrvard the said application to the Court oi revenue authority, as chrsetr by the decree holder' The decree holder has an option to procred against either the principal dcbtor or any of the guarantors or against alt of them' Refening to Section - r28 of the Indian Contrat:t A-ct, the Division Bench held that the lia:iiity of a surety is co-c:<r.en.sive with that of the principal debtor trnless it is otherwise pror ide'C by the contract' I KL,J CRPNo.867 of2o25

15. In Madamanchi Anill Kumar v. Margadarshi Chit Fund Pvt. Limited,2 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 Suudara Raor, held that 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 certificate has been issued by the Registrar of Chits to the competent Civil Court.

16. On consideration of the aforesaid provisions and on examination of the facts of the case therein, in Bandi Chandra Hari v. Brindavan Chits Karimnagar India private Limited3, this Court held that respondent No.1 _ decree_holder cannot recover double the awarded amount from the petitioners _ judgment debtors, and it is entitled for the decretal amount and interest including pendent lite interest as claimed by it from the judgment debtors. ( '. CRp No.2J38 of20 t8, decided on ()5. t I.20 tE '. URP No.l237 o f 2024. decided on 03 .05 .2O24 -l t2 K ,,J CRi'N ).867 of2025

17. As per Section - 60 of CPC after deducting ';tandard deduction plus one thousand and 213'd of remaining gross sa1ary and shall remit balanr:.: 1/3'd of salary every month from the date olreceipt of the wa1'ran1..

18. Normally. on realization of the decretal atnount' costs and pendent /l/e intcr'ost, respondent No' 1 - decree-holder shall fi te a fult- satisfaction rnerno before the Executing court with a request to terminate the pr,ller:dings in the subject EP' If respondent I'lo' 1 fails to hle such satisfaction memo, Executing Court can term Lnate the execution proce,:rJirLgs in the EP on its own'

19. In vit:w of the aforesaid discussion and observrtion' the present (livil Rr:'rision Petition is disposed of directing thc l ixecuting Courl to foll,rw tee procedure laid down under the Indian Corrtract Act and principle tai,C down in the aforesaid judgments ln the circumstancr:s c'f the case, there shall be no order as to costs' As a seq''rel thereto, miscellaneous petitions' if any' pending in this revision shrll stand closed' /ffRUE COPY// SO/.MOHD OEPUTY REG .ISMAIL TSTRAR SECTION OFFICER To, 1 2 J Twq CD CoPies . lH ?3 ?f ,i:i fJ,1l' i!:ii; l'^[Xll]"13nril"' r w kami gh ,x *- - --jia'a:i:1;:*3d5&;r',;- !&--'*- HIGH COURT DATED:25104t2025 ORDER CRP.No.1271 ot 2025 ',../ i,' ,.., t, L \, i, _\i. DISPOSING OF THE CIVIL REVISION PETITION

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