K ELUMALAI Vs. SELVAPRABA CHIT FUNDS PRIVATE LIMITED

JUDGEMENT

(1.) This revision petitioner is the subscriber in M/s. Selvapraba Chit Funds Private Limited and the first respondent is M/s. Selvapraba Chit Funds (P) Ltd., Neyveli. The petitioner participated in the bid and his offer was confirmed for a sum of Rs. 19,68,283/- on 14.09.2015 and also received the bid amount. He has also executed a promissory note in favour of M/s. Selvapraba Chit Funds Private Limited for repayment of the subscription. Subsequently, the petitioner has defaulted in payment of subscription. However, as per the Chit Agreement, the first respondent referred the matter to the Registrar/Arbitrator for passing of the award as per the Tamil Nadu Chit Funds Act, 1982. After considering the facts and circumstances of the case, the Deputy Registrar of Chits/Arbitrator passed an award for a sum of Rs. 19,68,683/-. Based on the award passed by the Deputy Registrar of Chits, Cuddalore, in A.R.C. proceedings in A.R.No.117 of 2015. The first respondent/Chit Fund Company has filed the Execution Petition in E.P.No.125 of 2016 on the file of the District Munsif Court, Cuddalore.

(2.) The first respondent herein has filed an application under Order XXI Rule 48 of Civil Procedure Code, to attach the salary of the Judgment Debtors 2 to 4. After considering the facts, the executing Court passed the pro-order of attachment and served to the Garnishee to attach the salary of the Judgment Debtors 2 to 4 and recover a sum of Rs. 25,000/- per month from the salary of the 2nd respondent; a sum of Rs. 6,333/- per month from the salary of the 3rd respondent and a sum of Rs. 6333/- per month from the salary of the 4th respondent respectively. Aggrieved by the said pro-order of attachment passed by the executing court, one of the Judgment Debtors/1st respondent therein has filed the present revision petition before this Court.

(3.) The main contention of the learned counsel for the petitioner is that since the debt was secured by the promissory note and also the immovable properties, the Deputy Registrar/Arbitrator does not have any power to pass an arbitraral award. Therefore, the executing Court does not have any power to execute the decree and the award passed by the Deputy Registrar/Arbitrator itself is nullity. Therefore, under these circumstances, the Judgment Debtor-1 has filed the Civil Revision Petition in CRP.(PD).No.476 of 2018 before this Court on earlier occasion to quash the arbitraral award and the same was dismissed by this Court by order dated 08.02.2018.