Garnishee Order: What it is?
Garnishee Order: What Is It?
1. Meaning of Garnishee Order
A Garnishee Order is a legal order issued by a court directing a third party (called the Garnishee) who owes money or holds property on behalf of a judgment debtor to pay or transfer that money or property directly to the decree-holder (creditor), instead of the judgment debtor.
In essence, it is a process by which the court attaches the debts or money due from a third party to the judgment debtor for the purpose of executing a decree.
2. Purpose of a Garnishee Order
To recover money due to the judgment debtor from a third party.
To prevent the judgment debtor from evading payment by directing the third party to pay the decree-holder directly.
To ensure effective execution of money decrees.
3. Legal Basis of Garnishee Orders in India
The garnishee order is provided under Order 21, Rule 32 of the Code of Civil Procedure, 1908 (CPC).
The rule allows the court to order a third party to pay money due to the judgment debtor directly to the decree-holder for satisfaction of the decree.
This is also known as attachment of debt or money in execution proceedings.
4. Who is a Garnishee?
The Garnishee is a third party who owes money or holds money on behalf of the judgment debtor.
Examples: Banks holding accounts of the judgment debtor, employers who owe salary, companies who owe money for goods supplied, or any debtor of the judgment debtor.
5. Procedure for Obtaining a Garnishee Order
Execution Petition: The decree-holder files an execution petition under Order 21 CPC.
Application for Garnishee Order: The decree-holder applies specifically for a garnishee order against the third party.
Notice to Garnishee: The court issues a notice to the garnishee asking about debts or money due to the judgment debtor.
Garnishee’s Statement: The garnishee files a statement disclosing money due or payable to the judgment debtor.
Garnishee Order Issued: If money is due, the court orders the garnishee to pay the amount to the decree-holder.
Payment by Garnishee: Garnishee is legally bound to comply and pay the decree-holder.
6. Important Points Regarding Garnishee Orders
Garnishee order is limited to money or debts owed to the judgment debtor.
The garnishee can defend by proving there is no money due or that the amount is exempted.
Garnishee order does not create a new debt; it only redirects an existing debt.
The garnishee is liable only to the extent of the money due.
If garnishee fails to comply, he can be held liable for contempt of court.
7. Distinction Between Garnishee Order and Attachment
| Aspect | Garnishee Order | Attachment |
|---|---|---|
| Subject matter | Money or debts due from a third party to judgment debtor | Tangible movable or immovable property of judgment debtor |
| Nature | Attachment of debt | Attachment of property |
| Third party involved | Yes, garnishee (third party) | No, property belongs to judgment debtor |
| Purpose | Direct payment of money to decree-holder | Sale or seizure of property to satisfy decree |
8. Leading Case Laws on Garnishee Order
a) K.K. Verma v. Union of India (AIR 1967 SC 1199)
The Supreme Court observed that the garnishee order is a remedy to execute money decrees effectively.
Garnishee cannot avoid payment if money is due; non-compliance attracts legal consequences.
b) M.C. Chockalingam v. P. Sivanandam (AIR 1954 SC 95)
Held that garnishee order is a procedure under CPC to attach debts and enforce decrees.
The garnishee’s liability is limited to the amount due to the judgment debtor.
c) J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Commissioner of Income Tax (AIR 1962 SC 329)
Affirmed the principle that garnishee orders are based on attachment of debts due to the judgment debtor.
The order protects the decree-holder’s right to satisfaction of decree.
9. Illustration
Suppose Mr. A obtains a decree against Mr. B for Rs. 5 lakhs. Mr. B has a bank account with XYZ Bank. Mr. A can apply for a garnishee order against XYZ Bank under Order 21 Rule 32 CPC, and the court may direct XYZ Bank to pay Rs. 5 lakhs from Mr. B’s account directly to Mr. A.
10. Summary
| Feature | Description |
|---|---|
| Meaning | Court order to attach money owed by a third party to judgment debtor. |
| Legal Provision | Order 21 Rule 32 CPC |
| Purpose | Execution of money decree by recovering debts owed to judgment debtor. |
| Garnishee | Third party who owes money to judgment debtor |
| Procedure | Execution petition → Notice → Garnishee’s statement → Order |
| Limitation | Only money or debts, not property |
| Case Law | K.K. Verma, M.C. Chockalingam, J.K. Cotton Mills |
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