Garnishee – Order 21, Rules 46-A, 46-1 of Code of Civil Procedure

Order 21, Rules 46-A, 46-1 deals with Garnishee.

Garnishee means a judgement-debtor’s debtor. Garnishee is a person who is liable to pay a

debt to judgement-debtor or to deliver any movable property to him.

A garnishee order is an order passed by a Court ordering a garnishee not to pay money to the
judgement-debtor because; the judgement-debtor is indebted to the garnisher.

The procedure for grant of garnishee order has been stipulated under Rules 46-A to 46-1.

The Court may, in the case of a debt (other than a debt secured by a mortgage or a charge)
which has been attached under Rule 46, upon the application of the attaching creditor, issue a
notice to the garnishee liable to pay such debt, calling upon him either to pay into Court the
debt due from him to the judgement- debtor or so much thereof as may be sufficient to satisfy
the decree and costs of execution, or to appear and show-cause why he should not do so.

The payment made by the garnishee into the Court pursuant to such notice shall be treated as
valid discharge to him as against the judgement-debtor.

The Court may direct that such amount may be paid to the decree holder towards the
satisfaction of the decree and costs of the judgement-debtor.

The Court may direct that such amount may be paid to the decree holder towards the
satisfaction of the decree and costs of the execution.

Where neither the garnishee makes the payment into Court as ordered, nor appears and shows
any cause in answer to the notice, the Court may order the garnishee to comply with such
notices as if such order were a decree against him.

Where the garnishee disputes his liability, the Court shall determine his liability and then may
pass such order as it thinks fit.

In Syndicate Bank v. Vijay Kumar, while furnishing bank guarantee in favour of high
Court customer furnished two fixed deposit receipts duly discharged to the bank and
authorized the bank the custody of the receipts and renewals thereof. The Hon’ble Supreme
Court held that it becomes a general lien. Bank can set off liability of the party against the
receipts. If the fixed deposits are attached to bank garnishee has to go to the court. The
balance after adjustments of bank’s claim shall be available to satisfy the decree.

In Executive Engineer, KSE Board v. J H Sharma, the garnishee appeared in court in

response to the letter and filed a counter-affidavit, raising certain objections. It was held that
since he had raised his contentions in counter-affidavit, the same could be treated as
objections contemplated under O 21 R 46 C even in the absence of formal notice under O 21
R 46 C to order that the disputed question be tried as an issue and to decide the issue. In the
impugned orders, the court below did not consider the merits of the dispute raised by the
appellant.

Form of Notice
The notice submitted shall call upon the garnishee to show cause. In a particular case, a
money decree was obtained on the basis of Compromise. At the instance of the decree holder,
an attachment before judgment was effected, of a certain sum of money, said to belonging to
the judgment debtor which was in the hands of the appellant garnishee, by way of prohibitory
order. The executing court, at no stage, issued any notice under O 21 R 46 to the garnishee.
Only, a letter was directed by the court to be written, requesting the garnishee to remit to be
stated in the summons or notice. It would not attract O 58 R 5.