This civil revision petition challenged an order allowing execution against a guarantor without first proceeding against the principal borrower. The High Court held that the guarantor's liability is co-extensive with the borrower's and dismissed the petition.
The civil revision petition was dismissed.
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.
THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY
C.R.P.No.5128 of 2010
Date : 10-12-2010
Between : Pujari Satyanarayana s/o.late Appalaswamy .. Petitioner And Bharatiya Samruddhi Finance Ltd. (BASIX), Represented by its unit head of Srikakulam Unit, Srikakulam District and another .. Respondents
Counsel for the petitioner : Sri M.Viswanadham
Counsel for respondents :
The Court made the following :
ORDER:
This Civil Revision Petition is filed against order dated 22-9-2010 in I.A.No.136/2010 in O.S.No.847/2004 on the file of learned Principal Junior Civil Judge, Srikakulam.
I have heard Sri M.Viswanadham, learned counsel for the petitioner and perused the record.
The petitioner is defendant No.2 in O.S.No.847/2004. Being a guarantor to the principal borrower, a decree for joint and several liability was passed against him and the principal borrower. In execution of the said decree, respondent No.1/decree-holder filed E.P.No.136/2010. The learned Principal Junior Civil Judge, by order dated 22-9-2010, allowed the E.P. and directed attachment of the properties of the petitioner.
At the hearing, learned counsel for the petitioner submitted that respondent No.1, without proceeding against the principal borrower, has filed the E.P. against his client and that the court below ought not to have allowed the E.P. without directing the decree-holder to first proceed against the principal borrower.
I do not find any merit in this submission because the law is well settled that the liability of the guarantor is co-extensive with that of the principal borrower and the decree-holder has always the option to proceed against the guarantor for recovery of the decretal amount instead of proceeding against the principal borrower.
In this view of the matter, I do not find any merit in this Civil Revision Petition and the same is accordingly dismissed.
C.V. NAGARJUNA REDDY.,J
Date: 10-12-2010
AM
2 issues framed by the court
Whether a decree-holder can proceed against a guarantor without exhausting remedies against the principal borrower.
Whether a civil revision can be maintained challenging an order allowing execution proceedings against a guarantor.
Pujari Satyanarayana
Bharatiya Samruddhi Finance Ltd. (BASIX)
C.V. Nagarjuna Reppy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
