Garnishee Order and Attachment Order

It is issued by court under Sec. 60 of Code of Civil Procedure Code 1908. Garnishee order is the order by competent court at the re uest 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 che ue &if no amount is mentioned' and customer is advised about the order immediately to avoid dishonourin" of che ues. -t this sta"e ban% #ill recover its o#n dues first) &/0ercise 1i"ht of Set2+ff' and subse uently inform the court about remainin" balance available for attachment. b. +rder -bsolute -fter the ban% submits its e0planation) the court issues an absolute order attachin" the funds of !ud"ement debtor #ith the 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 &Savin"s 3an% -ccount*Current -ccount' or to become due for payment in future i.e. 4i0ed 5eposit 1eceipt. .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 not 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. <' =oint a*c) 4irm$s a*c if trust a*c the order is in individual name. 6' 5eceased * insolvent a*c. >' 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 It is 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 subse uently. 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 e ual) 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.

5ifferentiation bet#een Garnishee +rder and I. -ttachment +rder.

Garnishee Order 1' Issued by Court under Sec 60 of Code of Civil Procedure -ct 1908 7' Generally) not issued for specific sum. :' ,ot applicable to future credits ;' +rder in sin"le name does not attach funds in !oint a*c. <' 5oes not attach deceased * insolvent a*c.

IT Attachment Order 1' Issued by Income ta0 -uthorities under Sec 776 of I. -ct 1961. 7' -l#ays issued for specific sum. :' -pplicable for future credits also. ;' -pplies to !oint a*cs also. Pro2rata amount is attached. <' -ttaches deceased * insolvent a*cs.