Andhra Pradesh High Court Upholds Decree Execution Despite Insolvency Plea

Judgment debtor's insolvency claim dismissed; court emphasizes the finality of prior orders.

In a significant decision, the Andhra Pradesh High Court, presided over by Justice Ravi Nath Tilhari, has dismissed a civil revision petition filed by Yellapu Varaha Venkata Siva Satyanarayana, seeking to challenge the execution of a monetary decree against him. The petitioner, who was declared insolvent after the decree was issued, contended that his insolvency should halt the execution process.

The case originated from a suit filed by the decree-holder, Silaparasetty Veera Venkata Siva Satyanarayabna, which resulted in a decree awarding Rs. 6,50,000 with interest against the petitioner on December 6, 2016. The decree was pursued through execution proceedings, wherein the petitioner was ordered to pay the amount or face arrest.

Challenging the arrest order, the petitioner previously filed a revision petition (CRP No. 932 of 2022), which resulted in a conditional stay, provided he deposited a portion of the decree amount. Despite these conditions, the petitioner failed to comply fully, leading the executing court to issue an arrest warrant dated October 31, 2025.

The petitioner argued that his insolvency status, declared on February 1, 2024, should protect him from execution under the Provincial Insolvency Act, 1920. However, the court noted that this plea was not raised in the previous proceedings, where it could have been addressed. Justice Tilhari emphasized that the finality of the January 31, 2025, order in CRP No. 932 of 2022 must be respected, and the executing court's actions were in line with that order.

The court granted the petitioner the liberty to seek appropriate legal remedies, but firmly dismissed the current revision petition, reinforcing the principle that claims and defenses available during earlier proceedings cannot be reintroduced to unsettle established orders.

Bottom Line:

Execution of decree - Judgment debtor's plea of insolvency under Provincial Insolvency Act, 1920, not raised in earlier proceedings - Finality of earlier order cannot be unsettled by Coordinate Bench.

Statutory provision(s):  

• - Civil Procedure Code, 1908, Order 21, Rule 38  
• - Provincial Insolvency Act, 1920, Section 28  
• - Civil Procedure Code, 1908, Section 115

Yellapu Varaha Venkata Siva Satyanarayana @ Srinu v. Silaparasetty Veera Venkata Siva Satyanarayabna @ Bobby, (Andhra Pradesh) : Law Finder Doc Id # 2815089