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Srinivasan vs Sriram City Union Finance Ltd
2021 Latest Caselaw 17914 Mad

Citation : 2021 Latest Caselaw 17914 Mad
Judgement Date : 2 September, 2021

Madras High Court
Srinivasan vs Sriram City Union Finance Ltd on 2 September, 2021
                                                                                  CRP (NPD)No.4824 of 2017



                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                 DATED :02.09.2021
                                                     CORAM

                                    The Hon'ble Mr.Justice Krishnan Ramasamy

                                               CRP (NPD)No.4824 of 2017
                                                         and
                                                C.M.P.No.22813 of 2017

                          1. Srinivasan
                          2. Ravikumar
                          3. Elangovan                                          .. Revision Petitioners

                                                               vs.
                     Sriram City Union Finance Ltd.,
                     Rasipuram Branch,
                     D.No.78E, Sivamplaza
                     S.R.V.Complex, Katcheri Road,
                     Rasipuram, Rasipuram Taluk,
                     rep. by its Power Agent, Branch Manager.
                                                                                          ..Respondent

                     PRAYER:

                               Civil Revision Petition filed under Section 115 of CPC, to set aside
                     the order and decreetal order, dated 06.09.2017, made in R.E.P.No.94 of
                     2016, in A.C.P.No.59 of 2012, on the file of the Sessions Judge (Fast Track
                     Mahila Court) Namakkal.


                                     For Revision Petitioner         : Mr.T.Dhanyakumar
                                     For Respondent                  : Notice Served, no appearance

                     1/9


https://www.mhc.tn.gov.in/judis/
                                                                               CRP (NPD)No.4824 of 2017



                                                        ORDER

This Civil Revision Petition, filed under Section 115 of the Code of

Civil Procedure (C.P.C.) is directed against the order and decreetal order,

dated 06.09.2017, passed in R.E.P.No.94 of of 2016, in A.C.P.No.59 of

2012, on the file of the Sessions Judge, (Fast Track Mahila Court),

Namakkal.

2. The judgment debtors are the revision petitioners herein and the

respondent is the decree-holder.

3. The respondent/decree holder filed R.E.P.No.94 of 2016, under

Order 21 Rules 37 and 38 of CPC seeking arrest of revision petitioners, in

order to realize the decree amount. The said Petition was resisted by the

revision petitioners/judgment debtors by filing a counter, inter alia denying

the liability to pay the decree amount. The Executing Court, after hearing

both sides, viz., the respondent/decree-holder as well as the revision

petitioners/judgment debtors, passed the following order:-

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

''The petitioner prays for arrest of respondents 1 to 3/judgement debtor, in order to realise the award amount. But R1 to R3 side objected, as they were not received any notice in award proceedings and they were got only lesser income. It cannot be a valid ground in this execution proceedings, unless, the respondents 1 to 3 taken steps for setting aside the award passed on 11.03.2013. Hence, it is decided to order arrest of respondents 1 to 3. Arrest by 06.10.2017. Batta in a week. ''

4. Challenging the said order, the present Civil Revision Petition is

filed.

5. Mr.T.Dhanyakumar, the learned counsel appearing for the

revision petitioners would submit that the main grievance of the revision

petitioners is that, without adjudicating on the means of the revision

petitioners to pay the decree amount, or substantial part thereof, the Court

below passed a non-speaking order of arrest against them for non-payment

of decree amount. Further, the learned counsel submitted that it is not the

case of the respondent that the revision petitioners are evading from

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

payment of the decree amount, since the first and second revision petitioners

are working in Electricity Board and earning a sum of Rs.12,200 and

Rs,16,500/- respectively as on the date of filing of the Execution Petition

and insofar as the third revision petitioner is concerned, he has no work,

since all the revision petitioners were living hard life and has no sufficient

source of income, the revision petitioners were not in a position to pay the

decree amount. Therefore, the learned counsel submitted that, while

passing the order of arrest, the Court below has to give a clear-cut finding

on the issue of means to pay the decree amount or substantial part thereof.

The said aspect was not considered by the Court below and further against

the award amount, the respondent/decree-holder directly filed the Execution

Petition for arrest of the revision petitioners and the Court below also in a

mechanical manner passed the order of arrest of the revision petitioners.

Therefore, the learned counsel prayed for setting aside the order of arrest

passed against the revision petitioners.

6. Heard the learned counsel appearing for the revision petitioners. So

far as the respondent, Sri Ram City Union Finance Limited is concerned,

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

despite service of notice on them and their name is printed in the cause list,

none appeared on their behalf.

7. This Court perused the cryptic order of the Court below. The

Hon'ble Supreme Court, in the judgment reported in (1980) 2 SCC 360 in

the case of (Jolly George Varghese and another vs. The Bank of Cochin)

held that to cast a person in prison, because of his poverty and consequent

inability to meet his contractual liability is too violative of Article 21,

unless, there is proof of the minimal fairness of his willful failure to pay,

inspite of his sufficient means and absence of more terribly pressing claims

on his means. It was further held that there must be some element of bad

faith beyond mere indifference to pay.

8. Therefore, though the judgment debtors may have some source of

income, but, duty is cast upon the Executing Court to conduct an inquiry,

which is popularly known as the "means inquiry", to ascertain that despite

sufficient income in the hands of the judgment debtors, they are deliberately

refusing to comply with the demand of the decree-holder and satisfy the

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

decree amount. The Executing Court, without conducting such an enquiry,

cannot mechanically direct for the arrest and detention of the judgment

debtor. What is required to be seen is, Whether there has been a deliberate

attempt on the part of the judgment debtor to deny the decree-holder's

claim?

9. In the instant case, the first revision petitioner is said to have

been working in Electricity Department and earning Rs.12,200/- per month

and he is spending the same for his children's education and living hard life.

Similarly, the second revision petitioner is said to have been working in the

Electricity Department and earning Rs.16,500/- per month and the same is

required to meet out the educational expenses of his two daughters and he is

also living hard life. Insofar as the third revision petitioner is concerned, he

has no work at all. Hence, the endeavor of the Executing Court should be

to verify and ascertain the source of income of the revision petitioners and

find out whether the reasons stated by the revision petitioners/judgement

debtors for non-payment of the decree amount are true or not. Secondly, the

Executing Court should have considered that their monthly salary is

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

Rs.12,200/-(insofar as first revision petitioner is concerned) and Rs.16,500/-

(so far as the second revision petitioner is concerned), which could be

utilized to settle the decree amount.

10. However, such an inquiry, having not been conducted by the

Executing Court, the impugned order suffers from infirmity and hence, the

same is liable to be set aside.

11. The Order of the Court below is non speaking order. Adequate

and intelligent reasons must be given for judicial decisions. The

requirement of giving reasons for the decision is essence and virtually a part

of “due process”.

12. Thus, this Court finds that there is fault in the decision making

process of the Court below and therefore, as stated supra, the order passed

by the Court below is set aside.

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

13. Accordingly, the Civil Revision Petition is allowed, the order

impugned herein is set aside. No costs. Consequently, connected CMP is

closed.

02.09.2021

Index: Yes/No Speaking/Non-speaking Order sd

To

The Sessions Judge (Fast Track Mahila Court) Namakkal.

https://www.mhc.tn.gov.in/judis/ CRP (NPD)No.4824 of 2017

Krishnan Ramasamy, J., sd

CRP (NPD)No.4824 of 2017

02.09.2021

https://www.mhc.tn.gov.in/judis/

 
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