Judgment :- 1. Decree-holder in O.S. No. 31 of 1980 on the file of Sub Court, Kottarakara is the revision petitioner. The revision petitioner was a subscriber to a kuri conducted by the respondent. She paid 37 instalments and she bid the kuri and demanded the chitty amount from the foreman. The respondent foreman did not pay the amount. The revision petitioner filed a suit for the realisation of the amount and the suit was decreed and E. P. 7 of 1981 was filed for realisation of the amount. The revision petitioner filed E. A. 146/81 for attachment of the security amount in the hands of the Registrar of Chitties. Notice was served on the Garnishee, the Registrar of Chitties. The chitty Registrar filed objection stating that in view of S.15 (3) of the Kerala Chitties Act, 1975 the security amount is not liable to be attached by civil court in execution of a decree. The court below accepted the objection and dismissed the execution application. The revision is directed against that order. 2. Learned counsel for the revision petitioner contended that the revision petitioner is only a subscriber to whom amounts are payable by the foreman and by virtue of S.39 of the Chitties Act there shall be a first charge on the security amount for the payment of the chitty debts due to subscribers and therefore the amount lying as security in the hands of the Registrar is liable to be attached in pursuance of the decree passed against the foreman and the prohibition contained in S.15(3) is applicable only in respect of the decree obtained by the strangers. 3. S.15(3) of the Chitties Act reads as follows: "15(3), The security given by the foreman under sub-section (1) or any security substituted under sub-section (6) shall not be liable to be attached in execution of a decree or otherwise until the chitty is terminated and the claims of all the subscribers are fully satisfied." On a close scrutiny of the section it is clear that the prohibition in respect of attachment is applicable only in respect of decrees obtained by strangers, otherwise the words "until the chitty is terminated and the claims of all subscribers are folly satisfied" may not have any significance. From the above section it is clear that S.15(3) has been enacted to protect the interest of the subscribers of the chitty.
From the above section it is clear that S.15(3) has been enacted to protect the interest of the subscribers of the chitty. If amounts are due from the foreman, the subscribers who have obtained decree can very well proceed against the security amount. That is evident from the scheme of the Chitties Act. If there are too many claimants the subscribers would be entitled to get a rateable distribution. 4. S.39 of the Chitties Act says that where there are debts due from the foreman of a chitty in relation thereto and also other debts due from such foreman, the chitty assets shall be a first charge for payment of the chitty debts due to the subscribers. R.65 to 67 of the Chitties Rules, 1975 deal with the manner in which the security amount has to be disbursed after the termination of the chitty. R.65 says that the Registrar of Chitties shall after the termination of the chitty and after satisfying himself that the claims of all subscribers who have demanded payment have been fully satisfied and in respect of non-prized defaulted subscribers, the amount due to them has been deposited in separate accounts in the approved Bank, by the foreman and pledged with the Registrar of chitties, order the release of the security furnished under sub-section (6) of S.15. R.65 (1) says that the foreman shall make a declaration to the effect that no amount is due to any of the subscribers and to the Government and then only he can file an application for release of security and the Registrar can release the security only if be is satisfied that no amount is due to subscribers. The foreman of chitties also shall furnish detailed statement regarding the outstanding claims of all the subscribers, From a reading of S.15 and 39 and R.65 to 67 of the Kerala Chitties Act and Chitties Rules, 1975 it is clear that the subscribers have got the right to enforce a charge on the security amount. 5. In this case the revision petitioner has obtained a decree against the foreman and execution petition has been filed against him. The decree-bolder is definitely entitled to proceed against the security amount. The dismissal of the application for attachment is illegal.
5. In this case the revision petitioner has obtained a decree against the foreman and execution petition has been filed against him. The decree-bolder is definitely entitled to proceed against the security amount. The dismissal of the application for attachment is illegal. The Registrar of Chitties shall furnish a statement to the court below and inform the court as to whether any amount is available for payment towards the amount due to the decree-holder. In case there are other claimants the revision petitioner decree-holder would be entitled only to rateable distribution. The Garnishee shall furnish details to the court below and the revision petitioner is directed to proceed against the security amount. The Civil Revision Petition is allowed. No costs. Allowed.