It is further relevant to note that in Oriental Kuries Ltd v. Lissa and othersr, the Apex Court observed that the stipulation of empowering the
Case Details
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 Vacate the Stay Orders dated 27-12-2024 passed in lA No 2 of 2024 in CRP No 4107 of 2O24 yanting stay of all further proceedings in EP No 274 of 2022 in ARB No 566 of 2022 on the file of the Honorable Principal Junior Civil Judge, Karimnagar District lA NO: 2 OF 2024 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 salary attachment warrants vide order dated 03i 10/2024 in EP No. 274 of 2024 in A.R.B No.566 of 2022 passed by Hon'ble Principal JuniorCivil Judge cum Judicial Magistrate of First Class, Karimnagar pending disposal of main CRP and to pass Counsel for the Petitioner: Ms. SAMHITHA , for SRl. PENUBALLI RAMESH BABU Counsel for the Respondent No.'l : SRI N. AMARNATH The Court made the following ORDER: THE TION'BLE SRIJUSTICE K. LAKSHMAN CIVIL REVISION PETITION NO.4107 of 2024 ORDER: Heard Ms. Samhitha, learned cqunsel appears for Sri Penuballi Ramesh Babu, learned counsel for petitioners, and Sri N. Amarnath, learned counsel appearing for Chit Fund Company/ I'' respondent.
2. This Civil Revision Petition is filed under Article 221 of the Constitution of India challenging salary attachment order dated 01.10.2024 passed by the learned Principal Junior Civil Judge-cum-Judicial Magistrate of First Class, Karimnagar, tn
8.P.No.274 of 2024 in ARB.No.566 of 2022 ., Perusal of the record would reveal that 2"d respondent is the subscriber. Respondent Nos.3 to 8 stood as guarantors to 2nd respondent. 1" respondenVDecree Holder, Chit Fund Company, had filed an application, vlde ARB.No.566 of 2022, under Section 64 of the Chit Funds Act, 1982 (for short 'the Act'), before the learned Chit Arbitrator/Deputy Registrar of \ l 2 WJ C R.P-No.4107 of 2O24 Chits, at Karimnagar, against petitioners and respondent Nos.2 to 8 claiming an amount of Rs.11,08,4241-. Vide Award d.ated
07.02.2024, the learned Chit Arbitrator/Deputy Registrar of Chits held that petitioners and respondent Nos.2 to g are jointly and severally liable to pay a sum of Rs. 11,08,424/- along with interest @18% per annum on the principal amount of Rs.9,40,460/- from the date of filing of dispute l. e.,
12.10.2022 till the date of realization.
4. Thereafter, 1't respondent had filed an Execution petition vide E.P.No.274 of 2024 before the learned principal Junior Civil Judge-cum-Judicial Magistrate of First Class, Karimnagar, for realization of the said awarded amount from petitioners/Judgment Debtor Nos.2 and 3 only. Thereupon, the learned Executing Court issued salary attachment orders dated 01 .10.2024 directing the Disbursing Officers of petitioners/Judgment Debtor Nos.2 and 3 to withheld a sum of Rs.14,44,734l- from the salary of each petitioner and remit the said amount to the account of the said E.p. of the Executing 3 KL, J C.R P.No.4I07 of 2024 Court. Challenging the said salary attachment orders, petitioners filed the present Civil Revision Petition'
5. Leamed counsel for petitioners contended that l" respondent cannot realize the entire amount of Fts.14,44,734/- from the salary of each petitioner and without considering the said aspect, the learned Executing Court passed both the impugned salary attachment orders dated
01.10.2024 directing the Disbursing Officers to withheld the aforesaid amount from the salary of each petitioner' If recovery is made pursuant to both the said salary attachment orders, it amounts to recovery of double the awarded amount' Therefore, the same is impermissible.
6. Leamed counsel for 1 " respondent, on instructions, would submit that on realization of entire awarded amount from petitioners/Judgment Debtor Nos.2 and 3, l't respondent will take steps to terminate the execution proceedings' They will not recover double the awarded amount, as contended by \ 4 KL, J C.R.P No.4I07 of 2024 ""i, learned counsel for petitioners. l" respondent has filed counter-affi davit specifi cally contending so.
1. Admittedly, against the said Award dated 07.02.2024, petitioners and respondent Nos.2 to 8 did not prefer any appeal in terms of Section 70 of the Act. Therefore, the said Award attained finality.
8. It is relevant to note that Section 60 of the Code of Civil Procedure, 1908 (for short 'CPC'), deals with property tiable to attachment and sale in execution of decree. Sub-section (t)(i)(ia) of Section 60 of CPC is relevant to the present case and the same is extracted belou,. "60. ProperW liable to attachment and sale in cxecution of decree .- 'iII 'Ihe follorving properry is liable to attachrnent and sale in execution of a decree namely, lands. houses or other buildings. goods. monel'. bank-notes. cheques, bills of exchangc. hundis. promissory notes, Government sccurilics, bonds or other securities for money. debts. shares in a corporation and, save as hereinafter mentioned. all other saleable propcrty, movable or immovable, belonging to thc j udgment-debtor, or over rvhich. or the profits of which, he has a disposing pou.er which he may exercise for his own benefit, whethcr the same be held in the name of the .ludgrnent-debtor or by another person in trust Ibr him or on his behalf: i I I /. 5 KL, J C-R P.No 4107 of 2024 [(i) salary to the cxtenl ofe lthe firstl0 lone thousand rupees] and two third of the remainder] ll[in execution of any decree other than a decree lor maintenancel: Provided that where any part of such porlion of the salary as is liable to attachment has been urder attachment, g'hether continuously or intermittently, for a total period of twenty-fbur months. such portion shall be exempt from attachment until the expiry of a further period of twelve months, and, where such attachment has been made in cxecution of one and the same decree, shall. afler the attachment has continued for a total period of twcnty-four months. be finally exempt from attachment in execution of that decree.ll lr[(ia) onc-third of the salary in execution of any decree for mahtenance;]"
9. It is further relevant to note that in Oriental Kuries Ltd- v. Lissa and othersr, the Apex Court observed that the stipulation of empowering the chit-foreman to recover the entire balance amount in a lump sum in the event of the default being considered by a prized subscriber, is to ensure punctual payment by each of the individual subscribers of the chit fund. Without punctual payments, the system would become unworkable, and the chit-foreman would not be in a position to ' izorg; te scc z:z \ \ 6 KL, J C.R-P No.4107 oI202zr discharge his obligations to the other members of the chit tund.
10. It is also relevant to note that vide order dated
18.04.2016 in CRP.No.436 of 2016, the Division Bench of united High Court of Andhra Pradesh set aside the order passed by the Executing Court in apportioning the liability among the Judgment Debtors. I l. In the light of aforesaid discussion, this Civil Revision Petition is disposed of directing the leamed Executing Court to consider the aforesaid aspects, more particularly, the principle laid down in Oriental Kuries Ltd. (supra), Section 60(1)(i)(ia) of CPC and Sections 128 and 146 of the Indian Contract Act, 1872, and dispose of E.P.No.274 of 2024 strictly ln accordance with law,, and on realization of the decretal amount including interest, as awarded by the Chit Arbitrator/Deputy Registrar of Chits at Karimnagar, vide Award dated
07.02.2024 in ARB.No.S66 of 2022,I't respondent, Chit Fund Compa)2 shall file full satisfactory memo before the KL. J C.R.P-No 4107 ot 2024 Executing Court with a prayer to close the aforesaid Exeoution Petition, failing which, the learned Executing Court shall terminate the proceedings in the aforesaid E.P. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed. To, //TRUE COPY// SD/- N. SRI HARI DEPUTY REGISTRAR SECTION OFFICER
1. The Principal Junior Civil Judge cum Judicial Magistrate of First Class, Karim nagar.
2. One CC to SRl. PENUBALLI RAMESH BABU, Advocate [OPUC] 3. One CC to SRl. N. AMARNATH, Advocate [OPUC] 4. Two CD Copies kul/gh HIGH COURT DATED:21t0312025 ORDER CRP.No.4107 ot 2024 i. i 2 il : ,r itl25 a * + , DISPOSIN(.; OF TTIE ('RP WITHOI]I'COSTS AI 5lllx