Bombay High Court
PRAKASH ARUN CHITTE.versusANURADHA GOVINDRAO ADIK.
- Disposal
- Admitted/Allowed/Granted/Rule Absolute
Holding
The court held that the bank guarantee must be returned as there is no propriety in withholding it after the later order.
Summary
The applicant had a decree for payment of Rs.1 crore in a special civil suit and was initially directed by the District Court to furnish a bank guarantee of Rs.10 lakhs to obtain a stay of execution. The applicant appealed to the High Court, which on 10 December 2024 ordered a stay conditioned on furnishing a higher surety of Rs.25 lakhs, which the applicant complied with. Consequently, the applicant filed a civil application seeking the return of the original bank guarantee filed under the earlier order. The High Court observed that, in view of the subsequent order requiring a larger surety, there was no justification for retaining the earlier bank guarantee. The court therefore allowed the application and ordered the return of the Rs.10 lakhs bank guarantee to the applicant.
Issues considered
- Whether the bank guarantee furnished under the earlier stay order should be retained after a later order requiring a higher surety was issued.
Subjects
- stay of execution
- bank guarantee
- surety
- civil application
- high court
Judgment
2026:BHC-AUG:38176
1 926-ca-7953-2026.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY,
BENCH AT AURANGABAD
CIVIL APPLICATION NO. 7953 OF 2026
IN FA/1074/2024
Prakash Arun Chitte.
VERSUS
Anuradha Govindrao Adik.
...
Advocate for Applicant : Mr. Chapalgaonkar Shailesh S
Advocate for Respondent : Mr. Rahul R. Karpe
...
CORAM : ROHIT W. JOSHI, J.
DATED : AUGUST 21, 2026
P.C.:
1. Present applicant has suffered the decree for payment of
Rs.1 Crore in Special Civil Suit No.20 of 2021. Initially, the appeal was
filed before learned District Court. Vide order dated 03.07.2023,
learned District Judge-1, Shrirampur had granted stay to execution of
decree on the condition of furnishing bank guarantee to the extent of
10% of said amount i.e. Rs.10,00,000/-. Thereafter, the appeal is
preferred before this Court realizing that the same will not lie before
learned District Court.
2. Vide order dated 10.12.2024, this Court has granted stay
to execution of decree on the condition that solvent surety/security to
the extent of Rs.25,00,000/- is furnished by the appellant/applicant.
The appellant/applicant has furnished solvent surety/security to the
extent of Rs.25,00,000/- as directed vide order dated 10.12.2024. In
view of the aforesaid, present civil application is filed for returning
2 926-ca-7953-2026.odt
original bank guarantee.
3. In view of subsequent order dated 10.12.2024, there is no
propriety in withholding the bank guarantee furnished by the
appellant/applicant, which is furnished pursuant to the order dated
22.03.2024 passed by learned District Judge.
4. In view of the above, civil application is allowed. The bank
guarantee of Rs.10,00,000/- furnished by the appellant/applicant be
returned to him.
[ROHIT W. JOSHI J.]
Mujaheed//
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