Judgment debtors challenged a warrant of arrest issued in execution of a decree, having defaulted on payment under a Memorandum of Compromise despite an earlier last chance. The court dismissed both applications, confirming the Master's order, and imposed costs of Rs.2,50,000/- on the judgment debtors.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
A Nos. 3670, 3671 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 10-11-2025
CORAM
THE HONOURABLE MR JUSTICE N. ANAND VENKATESH
A Nos. 3670, 3671 of 2025
IN
EP No. 56 of 2019
Applicant(s)
Vs
M/s.RAGA Foundations Pvt.Ltd., No.23/12, Desika Road, Alwarpet, Chennai 600 004. Respondent
EP No. 56 of 2019
M/s.RAGA Foundations Private Ltd., No.23/12, Desika Road, Alwarpet, Chennai-600 004 Petitioner
Vs
A Nos. 3670, 3671 of 2025
No.851, Flat No.1B and 1C, K.G.S. Vrudh Apartments, 1st Floor, Kilpauk, Chennai-600 010.
2.Sanjeev Kumar No.851, Flat No.1B and 1C, K.G.S. Vrudh Apartments, 1st Floor, Kilpauk, Chennai-600 010.
3.S.C.Vijayakumar
No.851, Flat No.1B and 1C, K.G.S. Vrudh Apartments, 1st Floor, Kilpauk, Chennai-600 010.
4.M/s.VNS Leather Exports Pvt. Ltd., No.851, Flat No.1B and 1C, K.G.S. Vrudh Apartments, 1st Floor, Kilpauk, Chennai-600 010. Respondents
A No. 3670 of 2025
PRAYER
To set aside the order dated 18.07.2025 passed in E.P.No.56 of 2019 passed by the Learned Master.
A No. 3671 of 2025
PRAYER
To stay all further proceedings in E.P.No.56 of 2019, pending disposal of the present Application.
For Applicant(s) Ms.Ramya Subramanian
For Respondent(s): Mr.K.V.Babu
A Nos. 3670, 3671 of 2025
ORDER
passed the following order:-
“These applications have been filed questioning the order passed by the learned Master dated 18.07.2025, issuing fresh warrant of arrest and for staying the operation of this order.
2.This Court heard the learned counsel for the Decree Holder and the learned counsel appearing on behalf of the Judgement Debtors.
3.It is seen from records that pursuant to the filing of the Execution Petition, the parties have entered in to a Memorandum of Compromise on 13.07.2023. Clauses 7, 8 and 10 of the Memorandum of Compromise is extracted hereunder:
[7] The balance amount of Rs.2,90,00,000/- [Rupees Two Crores Ninety Lakhs only] shall be settled by the Judgment Debtors to the Decree Holder on or before 31.03.2024.
[8] That in the event of the Judgment Debtors failing to settle the balance sum on or before 31.03.2024, the Decree Holder shall be entitled to interest payable on the unpaid amount at the rate of 18% per annum from the date of default to till the date of settlement.
A Nos. 3670, 3671 of 2025
[10] In the event of failure to pay the balance sum as afore said, the Decree Holder shall be entitled to proceed with the E.P.No.56 of 2019 and take all necessary steps to recover the said sum together with interest.
5.The learned counsel appearing for the Decree Holder submitted that as on the end of August 2025, the Judgement Debtors are due and payable a total sum of Rs.3,45,31,602/- as per the Memorandum of Compromise.
6.The learned counsel for the applicants submitted that the applicants are taking earnest steps to settle the entire amount by selling a property and therefore, some time is required. The learned counsel further submitted that schedule of payment can be fixed by this Court and the same will be complied with by the applicants.
A Nos. 3670, 3671 of 2025
7.In the considered view of this Court, it is not necessary for the respondent/Decree Holder to run behind the applicants begging for the money. The amount payable by the applicants has already been crystallized under the Memorandum of Compromise and the applicants are duty bound to settle this amount. In fact, the amount ought to have been settled on or before 31.03.2024. After nearly one year and five months, the applicants are asking this Court to fix a schedule of payment and coming up with excuses as if arrangement is made for selling a property to settle the amount.
8.The learned Master has given a long rope to the applicants to settle the amounts and since the applicants were not coming forward to settle the amount, the learned Master has rightly issued a fresh warrant of arrest.
9.As a last chance, these applications are posted for hearing on 17.10.2025. It is made clear that the applicants will settle the amount and report the same before this Court. In the absence of the same, this Court will proceed further to pass final orders in these applications.
10.Post these applications for passing final orders on 17.10.2025. ”
A Nos. 3670, 3671 of 2025
10-11-2025
ss
A Nos. 3670, 3671 of 2025
N.ANAND VENKATESH J.
ss
A Nos.3670, 3671 of 2025 in EP No.56 of 2019
10-11-2025
1 issue framed by the court
Whether the learned Master's order dated 18.07.2025 issuing a fresh warrant of arrest against the judgment debtors should be set aside and further execution proceedings stayed.
Chandrasekaran
Sanjeev Kumar
S.C. Vijayakumar
M/s.VNS Leathers Exports Pvt Ltd
M/s.RAGA Foundations Pvt.Ltd.
N. Anand Venkatesh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
