Sri K. Shankar vs M/S Shriram Chits Pvt. Limited
2022 Latest Caselaw 3846 Tel

                 HON'BLE SRI JUSTICE P.NAVEEN RAO

                      C.R.P.No. 1597 of 2022
ORDER:

Heard learned counsel for petitioner Sri P Venkanna

and learned counsel for respondent no.1 Sri N Srikanth

Goud.

2. Revision petitioner is member of chit operated by

respondent no.1 chit fund company. Alleging that petitioner

defaulted in payment of amounts due, arbitration

proceedings were initiated, resulting in Arbitrator passing

an award in ABR.C.F No 207 of 2018 on 27.2.2021. Since

the amount quantified by the Arbitrator was not paid by the

petitioner, E.P. No. 28 of 2022 was filed on the file of the

First Senior Civil Judge, City Civil Court, Hyderabad.

Challenging the award, petitioner availed the remedy of

appeal and Chief Secretary to Government by order dated

1.6.2022 admitted the appeal and granted stay of order

dated 27.2.2021. Even before the order dated 1.6.2022

could be produced before the Execution Court, the

Execution Court by order dated 9.2.2022 ordered to

withhold award amount of Rs.35,79,411/- from the salary of the judgment debtor in monthly instalments. Petitioner

filed E.A (Sr) No. 5499 of 2022 praying to recall the order

dated 9.2.2022 by referring to stay order granted by the

Chief Secretary dated 01-06-2022. Instead of considering

the matter on merits, the Execution Court passed orders

under revision dated 13.7.2022, returning the application

holding that "Since stay granted by CS of Government, hence

petition not maintainable. Hence returned."

3. This Court do not understand, how the court

below came to conclusion that petition is not maintainable.

Petitioner has availed the remedy of appeal and the

appellate authority has granted stay on award passed by

Arbitrator. Therefore, there can not be any execution

proceedings until appellate authority decides the appeal.

The application of the petitioner ought to have been

considered in proper perspective. The order dated

13.7.2022 is set aside and the matter is remanded to the

court below for fresh consideration. Pending consideration

of E.A (SR) No. 5499 of 2022 there shall be no enforcement

of order dated 9.2.2022 passed by the Execution Court.

4. Accordingly, revision is allowed. No costs.

Miscellaneous petitions pending, if any, shall stand closed.

_______________________ JUSTICE P.NAVEEN RAO Date: 22.07.2022 Tvk HON'BLE SRI JUSTICE P.NAVEEN RAO

C.R.P.No. 1597 of 2022

Date: 22.7.2022