SIVAKUMAR Vs. SHRIRAM CHITS T NADU

JUDGEMENT

(1.) This revision petition is directed against the order of attachment dated 11.12.2012, in the above E.P. No. 2630 of 2012 in ARC. No. 1248 of 2010, on the file of X Assistant City Civil Court, Chennai. Material on record discloses that one Mr. Ramesh, was a member of a Chit, run by Shriram Chits T. Nadu (P) Ltd. He has joined a credit chit No. 58302, and in an auction, he has borrowed a sum of Rs. 1,20,000/-. Alongwith the abovesaid member, four other guarantors have undertook to repay the said amount, with interest and that a promissory note, dated 12.01.2009, has been executed. Subsequently, when all of them defaulted to repay the amount with interest, Arbitration Proceedings No. 1248 of 2010 has been instituted, under the provisions of the Tamil Nadu Chits Act. Material on record further, discloses that notices have been sent to the member/borrower, as well as to the guarantors. Despite the receipt of notice, the third respondent, in ARC. No. 1248 of 2010 remained absent. The notices sent to others have been returned. Inasmuch as notices sent to the respondents 1, 2 and 4 are concerned, paper publication has been made on 24.02.2011 and after considering the substituted service, they were also set ex-parte. A witness on behalf of Shriram Chits T. Nadu (P) Ltd., has been examined and he has marked five documents, viz., Ex. P1, Receipt, dated 12.01.2009, Ex. P2, Pronote, dated 12.01.2009, Ex. P3, Legal notice, dated 18.10.2010, Ex. P4, Statement of Accounts, Ex. P5, Acknowledgement for sending the legal notice. Taking note of the oral and documentary evidence and also the fact that after the institution of ARC, a sum of Rs. 25,000/- alone has been paid, the Arbitrator, by order dated 30.03.2011, directed that all the respondents to be jointly and severally liable, to pay a sum of Rs. 1,79,354/- with subsequent interest, and a sum of Rs. 3,960/- has also been directed to be paid towards costs. A sum of Rs. 25,000/- paid, has been directed to be taken credit for the outstanding dues.

(2.) Material on record further shows that the none of the guarantors have challenged the order made in ARC. No. 1248 of 2010, dated 30.03.2011. Subsequently, Shriram Chits T. Nadu (P) Ltd., has filed E.P. No. 2630 of 2012 seeking for a pro-order, to attach the salary of JD2, JD3 and JD4, with the garnishees, namely, the employers of the judgment debtors/guarantors.

(3.) A counter affidavit has been filed on behalf of the judgment debtors stating that they were only guarantors and that they have not received any amount from the chit company. Therefore, they have submitted that they are not liable to pay any amount. Material on record shows that after considering their objections, the learned X Assistant Judge, City Civil Court, Chennai, by observing that the award passed earlier has not been stayed and stating that the execution court cannot go beyond the decree, by order dated 22.01.2013 directed attachment of their salaries.