Debtor can be sent to jail for failure to pay: High Court

Justice M Seetharama Murthy of the High Court at Hyderabad laid down the parameters when a person who suffers a decree but fails to make the payment can be put in civil prison for such failure. The judge allowed a petition filed by the decree holder V Balachandra Naidu who obtained a decree against Dr. Gurubhushan Naidu for a sum of Rs3,40,000.

When the payment was not forthcoming the petitioner moved for his arrest. The civil court in Chittoor dismissed the petition. In dealing with the revision the judge pointed out to the evidence that the judgement debtor was doing granite business apart from being employed as a doctor. His wife was employed as a doctor. The judge said that the admissions by the decree holder is the best form of proof that the judgement holder was not without means.

The judge pointed out that once it is established that the judgement debtor is capable of making payments, then it is for him to establish that the stated sources are insufficient to pay the decretal amount. The judge also pointed out that when the failure to pay is lacking in bonafides than the judgement debtor runs the risk of being sent to civil prison and the decree holder is entitled to the said relief.