The High Court · 2025

Heard Sri Y.Yadu Krishna Sainath, leamed counsel for the petitioners - Judgrnent Debtor Nos.3 and 4. Despite service o1' notice, there is no representation on behalf of respondent \o.1 Decreeholder. JRespondent Nos.2 to 4 are not necessary part.ies and the said fact is mentioned in cause title itself.

2. This revision is filed under Section - 115 of the Codd of Civil Procedure, 1908, challenging th€ order dated 10.10.2024 passed in E.P. No.464 of 2022 in ARB. No.963 of 2021 by the leamed ll Additional Junic,r Civil Judge at Karimnagar.

3. Respond,:nt No. I had filed an application under Section 64 of the Chit Fund Act, t982 before the Chit Arbitrator/Deputy Registrar of Chits at Karimnagar against the petitioners and respondent Nos. 2 to 4 herein for recovery of Rs.6,71 ,087/- with interest at the rate of Rs. l8% p.a. fr,rrn the date of filing of dispute till the ,late of realization of said amount and costs.

4. The Deputy Registrar of Chits at Karimnagar, has passed an award dated 26.06.2023 holding that the petitioners and respondents 2 2 KL.J CRPNolllofT025 o to 4 herein are jointly and severally liable to pay an amount of Rs.6,71,087/- with interest at lSYo p.a. to the 1't respondent herein',

5. 1't respondent has filed E.P.No.464 of 2023 in ARB No'963 of 2021 for execution of the aforesaid Award. Learned II Additional Junior Civil Judge at Karimnagar, has issued impugned salary attachment orders both dated 10.10.2024 ditecting the Disbursing Officer of the petitioners herein i.e. The Executive Engineer, Division No.8, Irrigation Department, Raj anna Sircilla District, to withhold the sum of Rs.9,17,190/- from the monthly salary of the petitioners and remit the asid amount to the account of the aforesaid EP'

6. It is also relevant to note that, learned Executing Court has issued similar orders directing the Disbursing Officers of the petitioners herein/J.Dr.Nos.3 and 4 to withhold the said amount of Rs.9,17,1901 each from their salaries as pei Section - 60 ofCPC after deducting standard deduction plus one thousand and 2/3'd of remaining gross salary and shall remit balance 1/3'd of salary every month from the date of receipt of the warrant. 7 . Challenging the said attachment orders both dated

10.10.2024, the petitioners herein/J.Drs-3 and 4 filed the present revlston. G 3 ]iI,.J CRPNo.lllol202i I

8. Perusal of the aforesaid salary attachment orders both dated

10.10.2024 issued by the Executing Court in respect of the petitioners/J. Drs 3 and 4 would reveal that Executing C ourt has directed the Disbursing Officer of the petitioners herein to withhold the amount of Rs.9,17, 190/- from the salaries of both of them. Leamed Executing Court has also passed similar salary attachment orders in respect of other J.Drs. The Executing Court directed the Disbursing Officers of the petitioners herein to deduct and re,:over an amount of Rs.9.,I 7, I 90/- each from their salaries. In fact, the aforesaid execution petition was hled by respondent No.l - decree-holder to execute the avra rd for recovery of Rs.9,17,190/- each from their salaries. If the ,Disbursing Officer withhotd the said amount ar.rd remit to the account of the aforesaid EP, it amounts to recovery of m ore than the awarded an'rLount. The same is in violation of the procedure laid down under Contract Act, the Chit Fund Act, 1982 and also the principle laid dc,r zn by this Court in CRP No.2660 of 2024 dated 2660 of 2024. The said aspects were not considered by the Executing Court while issuing impugned salary attachment orders.

9. It is relervant to note that Section - 36 of the Arbitration and Conciliation Act, 1996 deals with 'enforcement of award, and the .\ -t 4 \ KLJ CRPNoIlIof2025 same ls relevant for the purpose of considering the /rs in the present revisions and it is extracted below: "section 36:-Enforcement. Where the time lor making an application to set aside the arbitral Award under section 34 has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the Court. (2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itsetf rendei that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose. (3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award lor reasons to be recorded in writing: Provided that the Court shall, while considering the application for grant ol stay in the case of an.arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908)." (J 5 KI-.J CIRP No.lll of2025

10. It. is also relevant to extract Order - )Oil, Rules _ ll (2),4g and 48A of th,e CPC and the same are as under: "XXI Ilule l1 (2) of CpC-Written application_ Save as othelvise provided by sub-rule(l), every application lor rhe execution of a decree shall be in writing, signed and verified by the applicant or by some other person proved to the satisfacti,tn of the Cor.rrt to be acquainted with the facts of the case. and shrrll contain in a tabular form the following particulars, namely_ (a) the rLumber of the suit; (b) the narnes of the parties; (c) the dilte of the decree; (d) w'hethcr any appeal has been preferred from the decree: (e) whether any, and (if any) what, payment or other adj ustmenr of.the malter in controversy has been made between thl partir.s subsequendy to the decree; (f) whettrer any, and (if any) what, previous applications hare been made lor the execution of the decree, the dales of sucr applications and their results; (g) the amount with interest (if any) due upon the decree, or other reUeti granted thereby, together with particulars of anv cross-decree, whether passed before or aftei the dare of rh,: decree soLrght to be executed; (h) the anrount oithe costs (ifany) awarded; (i) the narne of'the person against whom execution of the decrer is sought; a.nd fi) the mocle in which the assistance of the Court is required whether- (i) b1'the delivery ofany property specihcally decreed; 6 KL.I CRPNo I ll of2025 t,, (ii) by the attachment, or by the attachment and sale, or by the sale without aftachment, of any property; (iii)by the arrest and detention in prison ofany person; 1iv1by the appoinlment ofa receiveri (v) otherwise, as the nahre 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.- (1) Where the property to be attached is the salary or allowances of a servant of the Govemment or of a servant 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 State Act, or a Govemment company as defincd in section 617 of the Companies Act, 1956 (l of 1956)l the Court, whether the judgmenrdebtor 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 withhetd 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 offrcer as the appropriate Government may by notihcation in the Official 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 ofhcer or other person whose duty it is to disburse the same shall withhotd 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 timits, the officer or other person within 7 KL,J CRP No.l ll of2025 those limits whose duty it is to instruct the disbursinp authc,ritlr regarding the amount of the salary or allowances to bc disbursed shall remit to the Court the amount duc under thc order, or the monthly instalments, as the case ma) be, airct shall direct the disbursing authority to reducc the aggregatc of the amounts from time to time. to bc disbursed by the aggregate of the amounts from time to time remitted to the C'ourt. (2) Where the attachable proportion ofsuch szilary or allorvances is alreacly being withheld and remitted to a Court in pursuan,:e of a previous and unsatisfied order of attachment, the offic:r appointed by the appropriate Govemment in this behalf shrll fo(huith r"etum the subsequent order to the Court issuing it wi:h a full statement ofall the particulars of the existing attachment. (3) Every order made under this rule, unless it is retumcd in accordancr: with the provisions of sub-rule (2) shall, without further notice or other process, bind the appropriate (iovernmeut or the railway company or local authority or corporation of Govenunent company, as the case may be, while the judgmenr- debtor is v/ithin the local limits to which this Code for the time being extends and while he is beyond those limits, if he is in receipl of any salary or allowances payable out of th: Consolidaled Fund of India or the Consolidated Fund of th: State or the funds of a railway company or local authority or corporatiorr or Govemment company in India; and thil appropl iatc Govemment or the railway compan). or local authorit.y or corporation or Govemment company, as the casi: may be. shall be liable for any sum paid in contravention of thi:; rule. '!;r . 8 KL,J CRPNo.lllot2025 t Explanation.-ln this rule, "appropriate Govemment" means,- (i) As respects any person in the service of the Central Government, or any servant of a railway administration or of a cantonment authority or of the port authority of a 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 Govemment or by more than one State Govemments or partly by the Central Govemment and pa(ly by one or more State Govemments, the Central GovernmenU (ii) As respects any other servant of the Government, or a servant of any other local or other authority, or any servant ol a corporation engaged in any trade or industry which is established by a Provincial or State act, or a servant ofany other Govemment company, the State Government." "Order - XXI, Rule - 4EA. Attachment of salary or allowances of private employees.- (1) Where the property to be attached is the salary or allowanccs of an employee other than an employee to whom rute 48 applies, the Court, where the disbursing offrcer of the employee is within the local limits of the Court's jurisdiction, may order than the amount shall, subject to the provision of section 60, be withhcld 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. 9 KI-.J CRP No.ll I of202i (2t) Where the attachable portion of such salary or allou,ances is already being withheld or remitted to the Court in pursrnnce of a previous and unsatished order of attachment, the di;bursing oflirer shall forthwith retum the subsequent order to the Court issuing it with a full statement of all the particular: of the 3xisting attachment. t'3) Every order made under this rule, unless it is reh,med in ac,:c,rdance with the provisions of sub-rule (2), shall, without l'urther notice or other process, hind the employcr rvhile the .jutlgment-debtors, is within the local [imits to which th s Code fbl the time being extends and while he is bey.ond those-limits, if hr: is in recbipt of salary or allowances payable out of the funds of an employer in any part of India, and the enrployer sheLll be liable for any sum paid in contravention of this rule.,'

11. lt is also relevant to extract Section - 7l of the Chit Fund Act, 1982 and the same is as under: " 71 . Money how recovered.-Every order pzrssed by the Rcgistrar or the nominee under section 68 or section (i9 and cvery. order passed by the State Government in appeal under sectic,n 70 lor payment ofany money shall, if not carried out, (a) on a certificate issued by the Registrar, be deemed to be a dccree of a Civil Courl 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 lar. for thc time being in force for the recovery of amounts as arrears of land revenue: Provided that no application for execution urrder claLrsc (b) shall be made after the expiry of three vears frorn the . r.i.: 10 KI-.J CRPNo.lllof2025 date fixed in the order, and if no such date is fixed' from the date of the order."

12. It is also relevant to extract Sections - 126, 128 and 146 of the Indian Contract Act, 1872 and the same is as under: "126. "Contract of guarantee", "surety", "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 guarantee 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 catted the "creditor"' A guarantee may be either oral or written"' "128. Surety's liability.-The tiability ol the surety rs co- extensive with that of the principal debtor, r"mless it is otherwise provided by the contract." "146. Co-sureties liable to contribute equally'-Whcre two or more persons are co-sureties for the same debt or duty' either jointly or severally, and whether under the same or different 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 of the whole debt, or of that part of it which remains unpaid by the PrinciPal debtor."

13. Thus, the liability of the co-surety is co-extensive with that of principal debtor unless it is otherwise provided by the contract' it_.J CRP No.ll I of2025 The said princ,ip[g was also laid down by a Division Benc:h of the High Court ol' Iudicature for the States of Telangana and Andhra Pradesh at Hydcrabad in punyamurthula Venkata Viswa Sundara Rao v. M/s. Margadarsi Chit Fund pvt. Ltd.I.

14. The aforesaid relevant provisions would reveal that for realization of the amount covered under the arbitration award, respondent No. [ - decree holder has to file an applicatio,r under Section - 36 ol rhe Arbitration and conciliation Act, r996, and order - XXI Rule ll r'2) of CpC. Accordingly, respondent No.l had titea tfre aforesaid execurion peririon vide E.p.No.464 of 2023.

15. In Punyamurthula Venkata Viswa Sundara Raor, the Division Bench on consideration of the contentions advanced by the parties. lramed the fbllowing two (02) points for consideration: u,hether the decree holder has to proceed against all thc .judgrn,:nt dcbtors, who are guarantors, by claiming proporti()nate amount decreed. tl. rvhethcr the execution Courts in which E.ps. were filed against the present judgment debtors, who are revision petitions herein, have jurisdiction to entertain the exccution petitions. 20r7(i)ALt82(r)B) l t2 KL,J CRP No.l I I o1 2025

16. 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 proper authority at the option of the decree holder and the Registrar shall himself issue the certihcate 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 them. Referring to Section - 128 of the lndian 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' t7. tn Madamanchi Anill Kumar v' Margadarshi Chit Fund Pvt. Limited,' 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 Raot' held that the 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 ']. c.R.p. NO.2338 of20l8, decided on 05-l1 2018 l3 K L,J ( tP No.l I I of2025 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 ha:s been issued by the Registrar of Chits to the competent Civil Court

18. On consideration of the aforesaid provisions and on examination o I the facts of the case therein, in pra ttipati Srinivasa Rao v. M/s. Shriram City Union Finance Limited3, this Court held that respondent No. I - decree-holder cannot recover double the awarded amolrnt trom the petitioners _ judgment debtors, and it is entitled for thc,Cecretal amount and interest as claimed by it from the judgment debt,rr.s.

19. As,Ciscussed above, the Award was passed for rer:overy of Rs.6,71,087/- al,cng with interest @ lg% per annum on the principal amount of Rs.5,85,300/-, and the petitioners herein and rer;pondent Nos.2 to 4 hercin are jointly and severally liable to pay the said amount. Respondent No. 1 - decree holder has fired the iLforesaid execution petition against judgment debtor Nos.1 to 5 to recover the aforesaid amourli of Rs.9, I 7, 190 l- each from their salaries. Without considering the aforesaid aspects, more particularll,. Sectiors _ l2g r. Common Ordcl in Cl..p Nos.lji & I5l of2023, deci ded on 02.03.2023 : r-,.. .i.. ::' ,.:.it-, l4 KL.J CRPNolllof2025 ( and 146 of the provisions of the Indian Contract Ac and Section -71 of the Chit Fund Act and also the principle laid down in Punyamurthula Venkata Viswa Sundara Raor, Madamanchi Anill Kumar2 and Prattipati Srinivasa Rao3, the Executing Court issued the impugned salary attachment orders both dated 10.10.2024 in E'P' No'464 of

2023. Thus, by virtue of the said salary attachment, there would be recovery of more than the amount awarded from the petitioners herein which is impermissible under law. The same is in violation of the procedure laid down under Contract Act, Chit Fund Act, 1872 and also the principle laid down by this Court in CRP No'2660 of 2024 dated 18.10.2024. The said aspects were not considered by the Executing Court while passing the impugned order dated 10'10'2024 in E.P. No.464 of 2023. Therefore, the said order is liable to be set aside.

20. The present Civil Revision Petition is accordingly allowed' The impugned order dated 10.10.2024 in E.P. No.464 of 2023 in ARB No.963 of 2021 passed by learned II Additional Junior Civil Judge at Karimnagar, is set aside. The matter is remanded back to the Executing Court with a direction to consider the said E'P' No'464 of 2023 in ARB No.963 of 2021 afresh and pass appropriate orders in .l l5 KI-,J CltPNo.l1lol2025 accordance v/ith law including the aforesaid provisions anrl principle laid down by this Court. [n the circumstances of the case, there shall be no order a:; r:o costs. As a sequel thereto, miscellaneous petitions, if any, pending in this revision shall stand closed. //TRUE COPY// Sd/- MOHD. ISMAIL ASSISTANl' REGISTRAR / S CTION OFFICER To,

1. The ll Additional Junior Civil Judge at Karimnagar. 2. One CC to SRl. V. YADU KRISHNA SAINATH Advocate [OPUC] 3. Two CD Copies \ 6 I HIGH COURT OATED:0710212025; ORDER CRP.No.1't'l oI 2021) ALLOWING THE CI\ IL tiEVISIoN PEI'ITION 6lot'' *-, d ( 7+ J .) 1lE !lA o^ ( 2 0 FEB 2fl25 t oS.9,>ar C Hr-o t --l €