Telangana High Court
Smt. J. Mary Manoranjani J.M.M. Ranjani vs M/S. Margadarsi Chit Fund Private ... on 4 November, 2024
THE HONOURABLE SMT. JUSTICE M.G.PRIYADARSINI
CIVIL REVISION PETITION No.2612 of 2024
O R D E R:
This Civil Revision Petition is filed by the revision
petitioners/judgment debtors aggrieved by the proceedings in
E.P. No.66/2023 on the file of learned Junior Civil Judge,
Mahabubnagar filed for enforcement of Arbitration Award in
ARB No.211/2021 dated 11.08.2022 without there being proper
transfer of award by the Arbitrator to the Civil Court.
2. For the sake of convenience, hereinafter, the parties will
be referred as per their array in the Arbitration proceedings
before the learned "Arbitrator/Registrar of Chits".
3. The revision petitioners herein are the judgment
debtors/guarantors before the learned Arbitrator. The
respondent No.2 herein was subscriber of chit with respondent
No.1 and revision petitioner Nos.1 to 3 and respondent Nos.3 to
5 stood as guarantors for the said chit transaction. The
respondent No.2 herein stood as successful bidder in the
auction held on 24.06.2018 and after deducting the bid
amount, Rs.18,85,720/- was paid to respondent No.2. The
guarantors including the present revision petitioners have
executed demand promissory notes and other necessary
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documents in favour of respondent No.1. The respondent No.2
paid 29 installments and thereafter committed default in
payment of installments. Hence, the respondent No.1 has
approached the Registrar of Chits/Arbitrator for recovery of
Rs.16,05,981/- under Section 64 of the Chit Fund Act, 1982.
After due enquiry, the learned Registrar of Chits/Arbitrator has
passed an award, dated 11.08.2022. Thereafter, the respondent
No.1 approached the learned Junior Civil Judge at
Mahabubnagar by filing execution proceedings vide E.P.No.66 of
2023. In this regard, attachment of salary of revision
petitioners/judgment debtor Nos.2 to 4 was ordered under
Order XXI Rule 48 of the Code of Civil Procedure. Aggrieved by
the same, the present Civil Revision Petitioner is filed by the
Judgment Debtor Nos.2 to 4.
4. Heard both sides and perused the record including the
grounds of revision.
5. The first and foremost contention of the revision
petitioners is that until there is a transfer of the award by the
Arbitrator as required under rule 55 of the Chit Funds Rules,
the civil court has not jurisdiction to entertain Execution
Petition for enforcement of the award and also recovery
certificate. In this regard, the learned counsel for the revision
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petitioners relied upon a decision in Punyamurthula Venkata
Vishwasundar Rao v. Margadarshi Chits Private Limited 1
wherein the Division Bench of High Court of Andhra Pradesh
observed that executing Court does not have any jurisdiction to
entertain application for execution of the award passed by the
Arbitrator, without there being transfer of the award to the civil
court for the purpose of execution. It is the specific case of the
revision petitioners that without there being any transfer of the
award to the executing court for the purpose of execution of the
award, the executing court directly entertained E.P.No.66/2023
and issued notices to the petitioners for execution of the award.
6. There is absolutely no doubt in the principle laid down in
the above said decision. It was observed in the above said
decision that execution proceedings should be initiated by the
party concerned in accordance with the provisions of Section
71 of the Chit Funds Act. The procedure for filing an execution
petition in the civil Court is only through the Registrar who
shall forward the application for execution to the proper
authority along with a certificate issued by him under Section
71 of the Chit Fund Act. Section 71 of the Chit Funds Act
confers the status of a decree of a civil Court, on the certificate
2017 (3) ALD 387
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issued by the Registrar. However, a perusal of the record
discloses, that a copy of the letter No.24/2022 issued by the
Deputy Registrar of Chits/Arbitrator at Mahabubnagar
addressed to the Junior Civil Judge, Mahabubnagar is filed. A
perusal of the said letter No.24/2022 dated 20.12.2022
discloses that as required under Section 71 (a) of the Chit Fund
Act, 1982, an application is filed by the disputant i.e.,
respondent No.1 herein for execution of award and recovery
certificate issued by the Deputy Registrar of Chits/Arbitrator in
ARB No.211/2021 and based on the said letter the Deputy
Registrar of Chits/Arbitrator has submitted the Award and
recovery certificate to the Junior Civil Judge, Mahabubnagar.
7. The E.P. No.66 of 2023 was alleged to have been filed on
15.02.2023 and the above mentioned letter was addressed by
the Registrar of Chits/Arbitrator to the Junior Civil Judge,
Mahabubnagar on 20.12.2022 i.e., much prior to filing of the
Execution Proceedings. It appears that after receipt of award
and recovery certificate, the Execution Petition No.66 of 2023
was entertained by the learned Junior Civil Judge,
Mahabubnagar. Thus, it cannot be said that the
disputant/respondent No.1 has not complied with the rule 55 of
the Chit Fund Rules.
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8. The revision petitioners/judgment debtors failed to
establish that there is any irregularity or illegality while
proceeding with the execution proceedings in E.P.No.66 of 2023.
9. Accordingly, the Civil Revision Petition is dismissed.
There shall be no order as to costs.
Pending Miscellaneous applications, if any, shall stand
closed.
_______________________________
JUSTICE M.G.PRIYADARSINI
Date: 04.11.2024
AS
