Garnishee Order and Attachment Order
Issued by court under Sec. 60 of Code of Civil Procedure Code 1908.
Garnishee order is the order by competent court at the reuest of !ud"ment
creditor attachin" the funds of !ud"ment debtor #ith debtor$s ban% &i.e. debtor$s debtor'
called Garnishee.
Garnishee order may mention specific amount or no amount. (hen no amount is
mentioned) the entire credit balance in debtor$s a*c "ets attached.
Garnishee order is implemented in t#o sta"es i.e. +rder ,isi and +rder -bsolute.
a. +rder ,isi
.hrou"h +rder ,isi) court see%s to advise the ban% as to #hy the funds in the
!ud"ement debtor$s a*c should not be attached for meetin" the obli"ations
to#ards !ud"ement creditor. +n receipt of +rder ,isi) ban% stops honourin"
customer$s cheue &if no amount is mentioned' and customer is advised about
the order immediately to avoid dishonourin" of cheues. -t this sta"e ban% #ill
recover its o#n dues first) &/0ercise 1i"ht of Set2+ff0 and subseuently inform
the court about remainin" balance available for attachment.
b. +rder -bsolute
-fter the ban% submits its e0planation) the court issues absolute order attachin"
the funds of !ud"ement debtor #ith Garnishee ban%. .he attached funds are
remitted to court.
Garnishee order attaches all deposit accounts of the !ud"ement debtor #ith credit
balances #hether payable on demand &S3*C-' or to become due for payment in
future i.e. 451. .he a*c should be held in same capacity. 4unds in !oint a*c are
not attached. 6o#ever) proprietor$s a*c and proprietorship a*c are attached even
if order is in proprietors name as both are same le"ally. . If "arnishee order is
served on the a*c of partnership firm) individual a*cs liability in partnership a*c is
!oint and several.
Garnishee +rder #hen ,ot -pplicable
1' If order is for specific sum) beyond #hich net applicable.
7' Cash credit * +verdraft a*c 8 even thou"h partially utili9ed as the relationship
of ban%er * customer is creditor * debtor.
:' -mount deposited after order.
;' Payment already made e.". .. is effected.
' Safe Custody * Safe 5eposit ?oc%er * 3ills sent for collection * unclear
balances) sale proceeds of shares * securities still to be received.
Income .a0 -ttachment +rder
Issued by Income .a0 -uthorities under Sec 776 of I. -ct 1961. It attaches any
debts due #hich may be payable at the time of attachment order or after#ards and also
any amount received subseuently. 6ence) it attaches present credit balance in all
deposit accounts &in case of 451 sub!ect to payment on maturity') proceeds of
instruments in collection) #hen received &i.e. future credits also'.
If I. order is in the name of one of the !oint account holders) the share of the !oint
account holders shall be presumed to be eual) until contrary is proved eventhou"h the
a*c is payable either or survivor.
Generally I. order mentions specific amount.
4unds in the partnership firms a*c are not attachable for order on partner$s a*c.
funds in a*cs of deceased customer or insolvent are attached.
doc_590037791.doc
Issued by court under Sec. 60 of Code of Civil Procedure Code 1908.
Garnishee order is the order by competent court at the reuest of !ud"ment
creditor attachin" the funds of !ud"ment debtor #ith debtor$s ban% &i.e. debtor$s debtor'
called Garnishee.
Garnishee order may mention specific amount or no amount. (hen no amount is
mentioned) the entire credit balance in debtor$s a*c "ets attached.
Garnishee order is implemented in t#o sta"es i.e. +rder ,isi and +rder -bsolute.
a. +rder ,isi
.hrou"h +rder ,isi) court see%s to advise the ban% as to #hy the funds in the
!ud"ement debtor$s a*c should not be attached for meetin" the obli"ations
to#ards !ud"ement creditor. +n receipt of +rder ,isi) ban% stops honourin"
customer$s cheue &if no amount is mentioned' and customer is advised about
the order immediately to avoid dishonourin" of cheues. -t this sta"e ban% #ill
recover its o#n dues first) &/0ercise 1i"ht of Set2+ff0 and subseuently inform
the court about remainin" balance available for attachment.
b. +rder -bsolute
-fter the ban% submits its e0planation) the court issues absolute order attachin"
the funds of !ud"ement debtor #ith Garnishee ban%. .he attached funds are
remitted to court.
Garnishee order attaches all deposit accounts of the !ud"ement debtor #ith credit
balances #hether payable on demand &S3*C-' or to become due for payment in
future i.e. 451. .he a*c should be held in same capacity. 4unds in !oint a*c are
not attached. 6o#ever) proprietor$s a*c and proprietorship a*c are attached even
if order is in proprietors name as both are same le"ally. . If "arnishee order is
served on the a*c of partnership firm) individual a*cs liability in partnership a*c is
!oint and several.
Garnishee +rder #hen ,ot -pplicable
1' If order is for specific sum) beyond #hich net applicable.
7' Cash credit * +verdraft a*c 8 even thou"h partially utili9ed as the relationship
of ban%er * customer is creditor * debtor.
:' -mount deposited after order.
;' Payment already made e.". .. is effected.
' Safe Custody * Safe 5eposit ?oc%er * 3ills sent for collection * unclear
balances) sale proceeds of shares * securities still to be received.
Income .a0 -ttachment +rder
Issued by Income .a0 -uthorities under Sec 776 of I. -ct 1961. It attaches any
debts due #hich may be payable at the time of attachment order or after#ards and also
any amount received subseuently. 6ence) it attaches present credit balance in all
deposit accounts &in case of 451 sub!ect to payment on maturity') proceeds of
instruments in collection) #hen received &i.e. future credits also'.
If I. order is in the name of one of the !oint account holders) the share of the !oint
account holders shall be presumed to be eual) until contrary is proved eventhou"h the
a*c is payable either or survivor.
Generally I. order mentions specific amount.
4unds in the partnership firms a*c are not attachable for order on partner$s a*c.
funds in a*cs of deceased customer or insolvent are attached.
doc_590037791.doc