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Wednesday, October 10, 2007

Garnishee Order - Mr. KS Anantharaman

GARNISHEE ORDER

ü When the plaintiff obtains a Decree, he is known as Decree Holder (DH);

ü The defendant is known as Judgment Debtor (JD);

ü The plaintiff DH may execute the decree against the defendant JD;

ü One of the modes of execution is by getting Garnishee Order;

ü A garnishee is a JD's Debtor à "person sought to be warned" (i.e) the banker;

ü Order restraining garnishee from parting with any monies due or accruing due to JD & order for appearance to show cause;

ü The Court may direct the GARNISHEE to pay the money under the decree to the DH;

ü The Garnishee shall be added as a party to the execution proceedings; He shall be given an opportunity for making his representation;

ü 2 types of Garnishee Order:

v Garnishee Order nisi – opportunity to the banker to prove that order could not be enforced;

v Garnishee Order absolute – attaches the account of customer straight away (no opportunity is given to banker).

That's all about Garnishee – a sure shot question in GCL & Banking.



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