Shriram Chits P Limited vs Manuri Ravi 2 Others
2021 Latest Caselaw 1198 AP

             HON'BLE SRI JUSTICE K.SURESH REDDY

                          C.R.P.NO.6499 OF 2016

ORDER:-

          This Revision Petition is filed being aggrieved by the

order, dated 30-08-2016, passed in E.P.No.28 of 2015 in

AACF No.123 of 2012 by the Principal Junior Civil Judge,

Rajamahendravaram, East Godavari District, wherein the

application           E.P.No.28   of    2105   filed   by   the   revision

petitioner/decree holder under Order XXI Rule 48 and

Section 60 of the Code of Civil Procedure,1908, was

dismissed.

          The revision petitioner filed Arbitration Suit, AACF

No.123 of 2012, against the respondents/opponents under

Section 64 of the Chit Funds Act,1982 for recovery of a sum

of Rs.81,687/- along with interest and costs before the

Deputy Registrar of Chits and Arbitrator under Chit funds

Act,1982. The said Arbitration Suit was allowed by an

Award, dated 18-09-2014. Later, for execution of the

Award, the revision petitioner filed E.P.No.28 of 2015

before the Principal Junior Civil Judge,

Rajamahendravaram. While relying on the judgment of this

Court in M.Venkata Ramanayya vs. Margadarsi Chit

Fund Ltd., Kadapa and Others(1), the said E.P.No.28 of

2015 was dismissed by the court below holding that without

2009(4) ALD 300 2 KSR,J C.R.P.6499_2016

proceeding against the principal debtor, decree holder

cannot proceed against the guarantors though joint and

several liability exists among principal debtor and

guarantors. Aggrieved by the said Order, the present

revision petition is filed by the revision petitioner/decree

holder.

Heard the learned counsel for the petitioner and

inspite of service of notice on the respondents, they did not

choose to enter their appearance.

During the course of hearing, the learned counsel for

the petitioner has placed a reliance on an unreported

Division Bench judgment of this Court, dated

15-06-2010, in Chalapathi Chit Fund Private Ltd.,

Guntur. Vs. Adusumalli Malleswara Rao and three

others(C.R.P.No.2980 of 2009). In the above Division

Bench Judgment of this Court, after a review of the entire

case law, their Lordships held that where judgment debtors

suffered a joint and several decree, the decree holder is at

liberty to recover the money against any one of the

judgment debtors and further held that the decree holder

has the liberty to file an execution petition against one or

the other judgment debtors. Thus, by holding the above

view, overruled the judgment of M.Venkata

Ramanayya(first cited). Therefore, in view of the above 3 KSR,J C.R.P.6499_2016

dictum laid down by the Division Bench of this Court, this

Revision Petition is liable to be allowed.

Accordingly, the Civil Revision Petition is allowed and

the order, dated 30-08-2016, passed in E.P.No.28 of 2015

in AACF No.123 of 2012 by the Principal Junior Civil Judge,

Rajamahendravaram, East Godavari District is set aside.

The learned Principal Junior Civil Judge,

Rajamahendravaram is directed to proceed with E.P.No.28

of 2015 and dispose of the same in accordance with law,

particularly in view of the unreported Division Bench

judgment referred above. No order as to costs.

Miscellaneous Petitions pending, if any, shall stand

closed in consequence.

__________________ K.SURESH REDDY,J 26th FEBRUARY, 2021 TSNR