The High Court · 2025

Petition under rlection 151 CPC praying that in the circumstances stated in the affidavit filed in s,r.rpport of the petition, the High court may b r p leased to stay of all further proct:e,Jings including attachment of salary of tie petitioners in pursuance of th,: Crder daled 24-12-2024 in E.P.No 18 of 20?-: ir ARB No 280 'of 2022 passerj by l_earned ll Addl. District Judge at Karitnnagar, pending disposal of the rnain (.)RP. Counsel for the Petitioner: Sri Bathula Rajesh Counsel for the Respondent: Sri N. Srikanth Goud The Court made the following: ORDER HON'BLE SRI JUSTICE K. LAKSHMAN CIVIL REVISION PETITION No. 1633 of 2O25 ORDER: Heard learned counsel for the petitioner. peruse\ the record.

2. This Civii Revision petition is filed under Article 227 of the Constitution of India, challenging the attachment order, dated 24.12.2024 in Arb.tr.p.No.18 of 2023 in ARB.Case No.28O of 2022 passed by the leared II Additional District Judge, Karimngar.

3. Respondent No.2 is the subscriber of the Chit. Petitioner and Respondent Nos.3 and 4 are the guarantors to the said Chit. When the dispute was referred to the Arbitrai Tribunal under section 23 of the Arbitration and Conciliation Act, 1996, learned Arbitrator has passed an award, dated 27.O9.2O22 holding that the petitioner arid respondent Nos.2 to 4 are jointiy and severally liable to pay an amount of Rs.6,51,762/_ with interest @ 10% p.a. on the amount due from the date of KL, C.R. '. i.' 633 of 2025 2 filing of thir ltetition i.e.,28.03-2022 trll thc dert:: of award arrd @ 18(f,r ll.a. from the date of award to realiiration of the entire a ll-rou.nt.

4. Thr:rt:r1't-:t', respondent No.1 has filed an e'<ecution petition urrl,' D.P.No.18 of 2023 in ARB No !lti0 of 2022 under Clrr:c1tl XXI Rule 48 of C.P.C for execrll io'1 of the sa1cl a\\'.r'(l . \'ride irnpugned salary attachrn:n t order, d,ated t:'+ 1,,.'2024, the Executing Court dir-e<:ted the DisbursLng Ollicer of the petitioner/J.Dr'No 3 1o ''r/ithhoid an amc)rr.r1 '>f Rs.7,77,O28/- frorn the sal ]r" of the petitioner ,rtul remit to the account of the afo-er;aid E'P ChallenBinF1 the said attachment order, the pretitioner filed thr: prcrsent Civil Revision Petition (ron1 ellc ing that the Exr:cr.ti.irtg Court has issued simiiar rrttachment orders to c1l't,:r J.Drs ald the same is illegal'

5. It is rel:vunt to extract Order - XXI, Rules 11 (2) and 48 of th.e oP(-: and the same is as under: ")'lXI -lrLlc 1l (2) of CPC-lVritten application S rve a:i i rL erwise provided by sub-ru1e(1), e\ ery \ / ,/t' aI I II r I I I I i l I I i I KL,J C.R.P.No.1633 of 2O25 J application for the execution of a decree shall be in writing, signed and verifiecl 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 ol t he pa rt ies: (c) the datc of the dccree. (d) whether any appeal has been preferred from the decree; (e) whether any, and (if any) what, payment or other adjustment of the rnatter in conlroversy has been made between the parties subsequently to the decree; (0 whether any, and (it any) rvhat, previous applications have been made for the execution of the decree, the dates of such applications and their results; (g) the amount with interesL (if any) duc 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; (h) the amount of the costs (if any) awarded; (i) the name of the person against whom execution of the decree is sought; and [) the mode in which the assistance of the Court is required whether- (i) by the delivery of any properlv specifically decreed; Kt,, ( R l'. ';.j5-l-l of2025 1 ( i) 1,., .lre' attachment, or by the attachmc nt : t. rl s:rL) or b1' the sale without attachment, cf -n,' ':1 rf c rt)'; (rii)br ihe' arrest and detention in prison of arrr rr('IS()11; (ir) t r r.-re appointment of a receiver, (.,,) c,the nvise, as the nature of the relicf gr-ante 1 rliv requirc." "Ordr)r XXI Rule 48 of CPC-Attachment i)f salary or allowances of servant ol the Government or railway company or local authority.- (1) Where the property to br: atr ac:h':d is ir: s i rletrr'' or allou'ar-rces of a servant )i t re Gcr.e rr'-r,:irt or o[ a servant of a railway compi] l\ or Io< erl rLrrlhorit)' or of a servant of a cl)rp()rr1i .'rl enea!,r'( in any Lrade or industry rl'hic I est.ab ishr.:c1 by a Central, Provincial or State Ac1 o'a Gc r,e t; :r etlt company as defined in secLiot-r b L 7 of th<: (.lrr panics Act, 1956 (1 of 1956)l thc f ourl , u,lrr:1.lti'r- rhc judgment debtor or the dlsbtlrs; ng oItic,--- i:; or is not within the local limits ol t he Cc u,-, -, irrrisdiction, may order that the anI')r'nt j I llc sl-LrLl l .,u Lr.jecr to the provisions of sectiott ' q.itht l l lrom such salary or allowanccs cit h cr rn orc Fr:rvlncnt or by monthly instalments as thc r--o -rrt mrrv c r r rct; and upon notice of the ordcr tr I st ch oflice r a s the appropriate Governmenl ma t' by rrr r,i'l: rt on in the Olficial Gazette appornl rt t lis bt 1-r:.1 i. (al ri l- ere such salary or allowances arc t.o b : ciis:rr.rsecl u,ithin the local limits to rvl-rich -tiis -4r. i,l: ,:'::,.: ,"'/ .,/ I I I I ; i KL,J t:. l?.P. No. 1 633 of 2O25 5 Code for the time being extends, the officer or other person whose duty it is to disburse the same shal1 withhold and remit to the Court the amount due under the order. or the monlhly instalments, as the case may be, (b) where such salary or aliowances are to be disbursed beyond the said limits, the officer or other person within those limits i,i,hose duty it is to instruct the disbursing authority regarding the amount of the salary or allowances to be disbursed shall remit to the Courl 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 sa1ary or allowances is already being rvithheld 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 forthu,ith return the subsequent order to the Court issuing it u,ith a full statement of all the particulars of the exis[ing attachment. (3) Every order made under this rule, unless it is returned in accordance with the provisions of sub_ rule (2) sha11, without further notice or other process, bind the appropriate Government or the KL, c R '. r,, 6 )3 of 2025 6 rail.,\,al cornpany or 1ocal authority or corporati )lr ol Cr--re n rn--nt compan\., as the case may bc u'hi',' i'ie jurirglrL, n:-debtor is within the loca1 limits to r''hi :lr thi.s ( r,rt,: for the time being extends and rvhil'-' ht: is bc'ron<l tl-rose limits, if he is in receipt of an1' -s1li ry or 2111,-r.".i1tces payable out of the ConsolidatecL iL.r lrl c,f lnc i L ,,r the Consohdated Fund of the Statc r r the fu:rds rr1 a railway company or local ar-tthori[r' or co -por.rt or-r or Government company in lndia a nd th,: :r :1-- ropriate Government or the railwav co[ ])e ny or llc:ri :ruthority or corporation or Govelntnt'nt cc::.1:r,: rLr . as the case ma\r be, shall be liable :ot' : rl\' surn ::ii, I in contravention of this ru1c. rule, appro )ri lte E-:..Jrianation. -In Gr)v(l-rorcnt'means, (r) h:; r:spects any person in the senice r-1 he Ccr'ltr-il (iovernment, or any servant of a r:-i1r'a1,, aclrr.inrsrration or of a cantonment authoritg or of the p,1,1 1 zruthority of a major port, or an\ serv ln of .r cot'r;c r:ttion engaged in any trade or irl< u: tt1' rr,-'rirrr s c:stablished by a Central Act, or trny sirrvlllt ol a (io ernment company in which 2n1' p2rr '-rl rhe slrar,: ,:,ipital is held by the Central Governrn':t'r' or b,. nro'r' than one Statc Governments or partlv by tlLe r.lr'rtral Government and partly by one ()l IIorc S -rr",r: (:i, )\ ernments, thc Central Governmrlnt; (ii) ,\s 'r:spects any othcr servant of the Goverr u:nt, or'ar s,(:rvant of any other 1oca1 or other authorit.! ' or a'ry seriant of a corporation engaged in anv lrld: or \ \ \ I \ I' KL,J C.R.P No.1633 of 2A25 7 industry which is established by a State act, or a servant of any other company, the State Government.,, Provincial or Government

6. It is also relevant to extract Sections - 126, l2g and 146 of the Indian Contract Act, lBT2 and the same is as under: "L26. "Contract of guarantee", ',surety',, "principal debtor', and ,ocreditor,,. A "contract of guarantee" is a contract to perform thc promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "suret5/,; the person in respect of whose default the guarantee is given is called thc "principal debtor", and the person to n hom the guarantee is given is called the .,creditor,,. A guarantee may be either oral or writte n.,, "128. Surety's liability.-rhe liabiliry of the surcty is co extensive with that of the principal cleblor, unless it is otherwise provided bfr the contract." "L46. Co-sureties liable to contribute equally.-Where two or more persons are co- sure[ies for the same debt or duty, either jointly or severally, and whether under the same or different conr,racts, and whether with or without the knowledge of each other, the co-sureties, in the / Cr:. ' , - it )3 ttf 2a25 8 abrierr(' (rf any contract to the contrary, arc li1b c' as l){r.'.\'e crt themselves, to pay each an ecpral s he rc of . h: " 1,o1e debt, or of that part of it which re n L:: i Ls ur pa.cr bv rhe principal debtor." T.Fronrtlti':rbove,itthusbecomesclearthatlirrbilityof co-suret!' s crl-extensive with that of prinr:iral debtor unless it- is, ,rr.herwise provided by the contract lhe said principh v'as also laid d'own by a Division Ben(h of the High Cc,urt ,lf Judicature for the State of Telan5rana and the St;rte oI Andhra Pradesh at Hydrrr:-bacl in Punyamurthula Venkata Viswa Sundara RaLo v' M/s' Margadarsri Chit Fund Pvt. Ltd'1'

8. The zLlirrt:,;aid. relevant provisions would re'r'cal that for realization. ,.rl- the amount covered under thc al bitration award, rr:,s[ondent No.1 - decree holder hzrs to file an applicat.ron under Order XXI Rule i 1 (:2) of CPC' According[.,', respondent No. t had file<l th': aforesaid execution p,:tition vide E.P.No .18 ol 2023' 2017 (3) \LI s',(L).ll ) \ KL,J C.R.P.No.1633 of 2025 9

9. In Punyamurthula Venkata Viswa Sundara Rao (1 supra), the Division Bench of this Court on consideration of the arguments advanced by the parties, framed the following two (02) points for consideration 1

11. whether the decree holder has to proceed against all the judgment debtors, who are guarantors, by claiming proportionate amount decreed. whether the execution Courts in which tr.Ps. were filed against the present judgment debtors, who are revision petitions herein, have jurisdiction to enlertain the execution petil ions.

10. 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 forwarded to the appropriate 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 revenue authority, as chosen by the decree holder. The decree KL, ( R.t'..t'..tt.)3 ol 2a25 IO holder has an option to proceed against, ')it:rer the principal cLr:rtor or any of the guarantors or agrrit st al1 of them. Fr!:fr:r..-.r'rg to Section - 128 of the'L-rdizrrr ()ontract Act, the I)i,,ir;ion Bench held that the liabilitv o1' I surety is co-ext errt si',,: u,ith that of the principal clebtor rrnless it is otherlris: rr()vided by the contract.

11. In Madamanchi Anill Kumar w. Margadier'shi Chit Fund hrt. I-,imitedz, a Division Bench of tl-rc J1i11h Court of Andlrr:L Prad.esh at Hyderabad, consic et itl.g the principle l:ld down by the Division Bt nch in Punyarnurthula Venkata Viswa Sundara Rao , reld that the liabilitv o1- the sureties is joint and st'r er al The DivisiorL Be'trr:h also negatived the contentic'r I aised by the pet:tiorrr:'therein that a Reco\rery Crrrtifir:irr e issued by the i)r:ptt:y Registrar of Chits cannot be act':d upon' as per I:lule - 55 of the Andhra Pradesh Chit Furrd Rules, 2OO8 artcL tlat an execution petition is mair-'lainable to the Contpt:tert Civil Cor.rrt oniy if the Recoven ( ertificate is issuecL ]v1' I he Registrar of Chits. t. C.R.P. N,l .l-rlt Il 10i8. decided on 05.11.2018 i , I I I i I I t I KL,J C.t?.P.No.1633 of 2025 11 L2. On consideration of the aforesaid provisions and on examination of the facts of the case thelein in Sri Bandi Chandra Hari3, this Court held that the decree_holder cannot recover double or more than the awarded amount from the judgment debtors and the decree holder is entitled for the decretal amount and interest and costs awarded by the Sole Arbitrator.

13. As discussed supra, respondent No.1 had filed the said execution petition to recover the awarded amount and interest only from J.Dr.No.3

14. As discussed supra, learned Executing Court has issued impugned salary attachment order, dated 24.12.2024 directing Disbursing Ofhcer of petitioner/ J.D.R.No.3 ro withhoid the enrire amount covered under the said award and remit the said amount to the account of the said E.P. As per the provisions of the Indian Contract Act, it is for the decree holder to recover the decretal amount and interest either from the ' c.R.P.No.l237 ur2024, decided on 01.05.2024 ( .F. '. to. 633 c,f 2025 1 petitione'r'/ ,I . -rr.No.3 alone or from al1 tlle J Drs' Petitione'r oir r not contend that the decree hc'l'1e - has to recover 1h,: ,tnrount from thc subscriber pf chil or froln all J. Drs pr cp,t1'tionately It rs trl'so relevant to note that Section 6Ct -rf C P'C'

15. deals rnitlt tl'Lr: property iiable to attachmen t a:i1 ;ale in executiorr of cecree. Section 6O(i) and (ia) of r-l ) C' is relevant rrnrl 11te same is extracted hereund':r: 'r) iir :1\. to the extcnt of [thc first [one thor s rrL L -up,e trs ] ancl t$,o third of the remainder] [in I'recu ro r' .lf eu ri :lecree other than a decree for maintenan t:t I I IProvided that where zrny part of such por 'io r r[ ,ir,] salary as is 1iablc to attachment has I t:e I 111r|r- attachment, $'helher continur'ush c r inltr .Lrt1cntly, for a total period of tv-ent\ 'rlr1.' r mont 1s, such portion shall be excnrpt f rtllr :rttircrlncnt until the expiry of a further perio'1 r 'f tul l\ r months, and, r'"'here such attachrnet-rl h: s berrr r-Lac1e in execution of one and the szrr're d':t:-e:, s;1,-; rl1 :r1ler the attachmcnl has continued for : ot rl l;e; i,:,1 of twenty-four months, be hnally extlnlpl rro'n iltt3( trlnent in execution of that decree]]' tirr ,rne-third of the salary in cxecution of itnv <lt t:rle 1br ll'a intenance."

16. In th, ' light of the same, on recoverv o1 -h I entire .a KI,,J C.R.P.No.1633 of 2O25 l3 awarded amount along with interest and pendente lite rnterest, respondent No. 1/decree holder has to file full satisfaction memo before Executing Court to terminate the proceedings in the said E.p., farling which the trxecuting Court can terminate the proceedings in the E.P. 17 . During the course of hcaring, 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 disposed of directing the Executing Court to consider the aforesaid aspects and decide the E.P. No costs. As a sequei, the miscellaneous petitions, if any, pending in this Civil Revision petition shall stard ciosed. I To, //TRUE COPY// SD/- MOHD. ISMAIL EPUTY REGISTRAR \ SECTION OFFICER

1. The ll Additional District Judge, Karimnagar. ?. 9". CC to Sri Rajesh Bathuta, Advocate tOpUCl 3. One CC to Sri N. Srikanth Goud, Advocate [OpUC] 4. Two CD Copies Kam/gh HIGH COURl' DATED:0210512'.025 ORDER CRP.No.163li of 2025 ',,.: 21 I'Ar Ztt25 .oe sP,it ()t I !\ I 2 '2 c I I l I I , ! ! i. i i ! I I I I I I I I I i $ i I I DISPOSING OF THE CIVIL REVISION PETITION