APHC010153532026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI SATURDAY, THE 19th DAY OF SEPTEMBER 2026 PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND CIVIL REVISION PETITION NO: 1096 OF 2026 Between: 1. Bommala Ramesh Babu,, S/o. (late) Subba Rao aged 53 years, Occ. employee in Visakhapatnam Steel plant, R/o. D. No.30-82-1/86/8, Flat No. 302, Saketh Residency, Shivaji Nagar, 4th Road, Tirumalanagar, Vadlapudi, Visakhapatnam. ...Petitioner AND 1. M/s Margadarsi Chit Fund Private Limited, NAD Kotha Road Branch, Represented by its Foreman/Branch Manager, S. Srinivasa Rao, S/o S.V.R.Murthy, Hindu, aged 48 years, office situated at 58-1-204, Murgan Complex. Gouri Nagar, NAD Kotha Road, Visakhapatnam-09. 2. Kana Sree Sandhya, W/o. Ramesh Kumar, Hindu, aged about 40 years. Props. M/s. Marine Logistics and shipping Agency, 3F, Block-A, Parklane Residency. Opp. New Vuda Park, Lawsons Bay Colony, Visakhapatnam. 3. Kana Ramesh Kumar, S/o. Sridhar, Hindu, aged about 40 years, R/o. 3F, Block-A, Parklane Residency. Opp. New Vuda Park, Lawsons Bay Colony, Visakhapatnam. 4. Reddy Surya Rao, S/o. Demudu, Hindu, aged about 51 years, Props. M/s. Reddy Twins Constructions, B-3, Sri Sai Towers, 49- 26-66, Madhura Nagar, Visakhapatnam. 2 5. Annavarapu Madhavi Mohan, W/o. Murali Monan Rao, Hindu, aged about 59 years, Sarees Business, 3F, Parklane Residency, Opp. New Vuda Park, Lawsons Bay Colony, Visakhapatnam. 6. Reddy Bharathi, , W/o. Surya Rao, Hindu, aged about 51 years. Medical Reactionary, T-3, Sri Sai Towers, 49-26- 66, Madhura Nagar, Visakhapatnam. 7. Palisetty Satish Babu, S/o. Satya Rao. Hindu, aged about 36 years. Props. SLID. Enterprises, 9-1-60, Maddilapalem, Visakhapatnam, R/0. 55-1-15/6/3, Old Venkojipalem, H B Colony, Visakhapatnam 8. The Garnishee, General Manager, Pay and Accounts Section, Visakhapatnam Steel Plant, Visakhapatnam. ( R3 to R8 not necessary party in this Revision) ...Respondents Petition under Article 227 of the Constitution of India,praying that in the circumstances stated in the grounds filed herein,the High Court may be pleased toThe above named petitioner begs to present this Memorandum of Civil Revision Petition before this Honble Court being aggrieved by the order dt. 05-08-2025 made in E.P.No. 15 of 2025 in Dispute.No. 414 of 2015 on the file of Principal Civil Judge (SENIOR DIVISION) at Gajuwaka, Visakhapatnam district, IA NO: 1 OF 2026 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 pleased to dispense with filing of the certified copy of the order dt. 05-08-2025 passed in E.P.No. 15 of 2025 in Dispute. No. 414 of 2015 on the file of 3 Principal Civil Judge (Senior Division) at Gajuwaka, Visakhapatnam in the interest of justice. IA NO: 2 OF 2026 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 pleased to stay of all further proceedings in pursuant to the order dt. 05-08-2025 passed in E.P.No. 15 of 2025 in Dispute. No. 414 of 2015 on the file of Principal Civil Judge (Senior Division) at Gajuwaka, Visakhapatnam including attachment of salary. pending disposal of the above CRP and to pass Counsel for the Petitioner: REDDY VENKATA RAMANA Counsel for the Respondents: P DURGA PRASAD The Court made the following order: 4 THE HON’BLE SRI JUSTICE BATTU DEVANAND CIVIL REVISION PETITION NO: 1096 OF 2026 ORDER: The Civil Revision Petition is filed being aggrieved by the order, dated 21.07.2025 in E.P.No.15 of 2025 in Dispute No.414 of 2015 on the file of Principal Civil Judge (Senior Division) at Gajuwaka, Visakhapatnam. 2. Originally, the respondent No.1-M/s.Margadarsi Chit Fund Private Limited., filed an arbitration case in Dispute No.414 of 2015 before the Deputy Registrar of Chits/Arbitrator at Visakhapatnam under Section 64 of the Chit Funds Act, 1982 for recovery of Rs.25,24,182/- (Rupees Twenty Five Lakhs Twenty Four Thousand One Hundred and Eighty Two only) along with interest and costs from the Opponent Nos.1 to 7 therein. The revision petitioner is the opponent No.6 therein. 3. The Deputy Registrar of Chits/Arbitrator, Visakhapatnam, by Award, dated 12.03.2020 ordered for recovery of the amount of Rs.25,24,182/- along with interest at 18% per annum on the principal amount of Rs.21,00,000/- from the date of filing of the dispute to till the date of realisation. The Dispute is awarded against the Opponent Nos.1 to 7 with jointly and severally. The Disputant shall recover the amount by sale of the movable or immovable 5 properties or attachment of salaries or any other mode of execution as per law, by executing the Award in any civil court having jurisdiction over the Award amount. 4. Based on the Award, the Respondent No.1–Company filed E.P. No.15 of 2025 in Dispute No.414 of 2015 before the learned Principal Senior Civil Judge, Gajuwaka, seeking execution of the Award, dated 12.03.2020. By order, dated 21.07.2025, the court below ordered for attachment of the salary of the Petitioner/Respondent No.6 for realization of the amount awarded under the said Award. 5. Learned counsel for the petitioner submits that the order of the court below attaching the salary of the petitioner for default made by the respondent No.2/Opponent No.1 in payment of instalments with respect to the chit amount is illegal and is violated by material irregularities. He would submit that the court below failed to take note that the respondent No.1 herein instead of proceeding against the principal chit lifter i.e., Opponent No.1 has erred in proceeding against the petitioner who is the guarantor. The court below failed to consider that the entire execution proceedings including passing of the Award is behind the back of the petitioner as such, it is not sustainable under law. 6 6. It is further contended that the court below failed to consider the fact that no effort is made by the decree holder to realise the decretal amount from the respondent No.2 and has grossly erred in proceeding against the petitioner. Accordingly, he sought to set-aside the order passed by the execution court by allowing the present Civil Revision Petition. 7. Having considered the submissions of the learned counsel for the petitioner and on perusal of the material available on record, it is an admitted fact that the respondent No.1 is the ‘Company’ incorporated under the Indian Companies Act and has been doing chit fund business. The respondent No.1 has participated in the chit auction on 23.09.2009 and became a successful bidder having agreed to forgo an amount of Rs.20,00,000/-. The respondent No.2 entered into chit agreement with the respondent No.1 on 18.03.2012 and the total value of the chit is Rs.50,00,000/- for which, he has to pay monthly instalment of Rs.1,00,000/- for a period of 50 months. The respondent No.1 disbursed the balance after deducting the company commission to the respondent No.2. The respondent No.2 has paid an amount of Rs.9,00,000/- till the date of auction of the chit and his future liability is Rs.41,00,000/-. The respondent No.2 furnished guarantors, who executed agreement of guarantee, dated 7 20.02.2013 in favour of the respondent No.1 agreeing to pay the amount to the company in case of default of payment by the respondent No.2. By virtue of the said agreement of guarantors, including the petitioner herein, becomes liable jointly and severally for an amount of Rs.41,00,000/- along with entire amount of future instalments with interest at the rate of 18 % P.A. In case of default made by the respondent No.2 in paying the monthly instalments, all guarantors executed a demand promissory note, dated 20.02.2013 for the said amount as collateral security. The respondent No.2 received an amount of Rs.24,22,884/- on 21.02.2013 and Rs.5,77,116/- on 20.02.2013 in total Rs.30,00,000/- towards price amount. The respondent No.2 acknowledged the receipt of the said payment of cash voucher, dated 21.02.2013. The respondent No.2 has paid up to 29 instalments in full and thereafter committed default in paying instalments from 30th instalment onwards. In spite of repeated demands made by the respondent No.1, he failed to pay the dues. 8. After following the procedure, the respondent No.1 issued notice under Section 33 of the Chit funds Act, 1982, dated 25.10.2014 to the respondent No.2 and other guarantors. But, they did not choose to reply or paid any amounts towards dues. 8 Accordingly, the respondent No.1 filed claim petition to recovery the amounts under the provision of Chit Funds Act, 1982. 9. After hearing both sides, the Deputy Registrar of Chits/Arbitrator, Visakhapatnam in exercise of power conferred under Section 69 of the Chit Funds Act, 1982 held that the respondent No.1 is entitled to recover an amount of Rs.25,24,182/- along with interest at 18% from the date of filing of Dispute to till date of realisation. It is further held that any other payments made by the Opponents therein shall also be adjusted from quantified entitled amount. Accordingly, he passed Award in favour of the Disputant and against the Opponent Nos.1 to 7 with jointly and severally. The arbitrator held that the Disputant shall recover the amount by sale of movable and immovable properties or attachment of salaries or any other mode of execution as per law, by executing the Award in any civil court having jurisdiction over the Award amount. 10. In order to execute the Award, dated 12.03.2020, the respondent No.1 filed E.P. before the Principal Civil Judge (Senior Division) at Gajuwaka. As the Arbitrator passed Award against the Opponent Nos.1 to 7 therein jointly and severally, the respondent No.1 proceeded against the petitioner herein, who is 9 the guarantor. By order, dated 21.07.2025, the Principal Civil Judge, (Senior Division) at Gajuwaka passed Garnishee Order in E.P.No.15 of 2015 in Dis.No.414 of 2015 requiring the General Manager, Pay & Accounts Section, Visakhapatnam Steel Plant, Visakhapatnam, where, the petitioner is working as an employee to withhold an amount of Rs.63,53,584/- in monthly instalments of attachable amount and to remit the same to the court. Aggrieved by the said order, the present revision is filed. 11. Having considered the facts and circumstances of the case, it is an admitted fact that the revision petitioner being the guarantor to the chit amount executed the agreement of guarantee, dated 20.02.2013 and along with other guarantors agreeing to pay the amounts to the respondent No.1, in case of default of payment by the respondent No.2. All the guarantors also executed a demand promissory note, dated 20.02.2013. By virtue of the agreement of guarantee, dated 20.02.2013, all the guarantors are jointly and severally liable to pay the entire amounts of future instalments, in case of default by the respondent No.2. By virtue of the said agreement, the Arbitrator passed Award making all the Opponents therein liable jointly and severally. 10 12. It is settled law that to recover the dues as per the Award passed by the Arbitrator, the decree holder can proceed against any judgment debtor. Accordingly, in the present case, the respondent No.1 proceeded against the petitioner, who is jointly and severally liable to pay the quantified entitled amount as Awarded by the Arbitrator. In view of the same, there are no merits in the present revision petition. There is no irregularity or illegality in the order, dated 21.07.2025 passed by the Principal Civil Judge (Senior Division), Gajuwaka. 13. Accordingly, the Civil Revision Petition is dismissed. 14. No order as to costs. Consequently, Miscellaneous Petitions, if any pending, shall stand closed. _____________________________ JUSTICE BATTU DEVANAND Date: 19.09.2026 PKR 11 THE HON’BLE SRI JUSTICE BATTU DEVANAND 185 CIVIL REVISION PETITION NO: 1096 OF 2026 Date: 19.09.2026 PKR