You are on page 1of 5

WHAT IS A GARNISHEE ORDER?

h
(tp/:wwwtf.guruc.om)

Posted in Banking General (/categories/faqs/banking-general)

U
P Vote 5 Rate

The obligation of a banker to honour his customers cheque is extinguished on receipts of an order of the court known as garnishee
order issued under order 21 Rule 46 of civil procedure code. Such an order attaches the debts not secured by a negotiable
instrument by prohibiting from recovering the debt and the debtor from making payment thereof. The creditor at whose request the
order is issued is called the judgement creditor the debtor whose money is frozen is called the judgement debtor. And the banker
who is the debtor of the judgement debtor is called the garnishee.

This order is issued in two parts. First the court directs the banker to stop payment out of the account of the called as ORDER NISI.
On receipt of the confirmation of the banker court issued another order known as order absolute whereby the entire balance in the
account or a specified amount is attached.

GARNISHI ORDER IS APPLICABLE


a. Where there is a credit balance
b. Attaches the amount drawn by a cheque but payment not yet effected.
c. All bank branches of a bank are treated as one entity.
d. Attaches future maturing term deposits also.
e. attaches joint account if issued so
f. Attaches personal account of partners if an order is served on a partnership account.

WHERE THE ORDER IS NOT APPLICABLE


a. Where a cheque has been marked for good payment.
b. Attaches the amount specified only
c. Not applicable to sanctioned limit.
d. Where any assignment of balance has been made and acknowledged
e. Not applicable to deceased and insolvents
f. Salary is not attached.
g. Bank can exercise the right of set off before complying with Garnishee Order.

Print (/categories/faqs/banking-general/206-what-is-a-garnishee-order?tmpl=component&print=1&page=)MEmail
(/component/mailto/?tmpl=component&template=yoo_nano3&link=f214100c1080942f888b7ab495f9057c70d34176)

< Prev (/categories/faqs/banking-general/207-state-few-laws-where-a-banker-is-justified-in-rightful-disclosure)

Next > (/categories/faqs/banking-general/205-when-a-minor-attains-majority)


Login to post a comment

Username Password

Remember me Login

Register (/component/users/?view=registration) Forgot password (/component/users/?view=reset)

Comments

COMMENTS

Sort by Oldest First Sort by Latest First

(/component/kom
format=feed&compo

No comments found

Relate Articles

WHAT IS YIELD TO MATURITY? (/categories/faqs/banking-general/12-what-is-yield-to-maturity)


EXPLAIN REPOS? (/categories/faqs/banking-general/15-explain-repos)
WHAT DO YOU MEAN BY YIELD? (/categories/faqs/banking-general/14-what-do-you-mean-by-yield)
WHAT IS YIELD CURVE? (/categories/faqs/banking-general/17-what-is-yield-curve)
WAHT IS A COMMERICIAL PAPER? (/categories/faqs/banking-general/35-waht-is-a-commericial-paper)
TELL ABOUT TREASURY BILLS? (/categories/faqs/banking-general/25-tell-about-treasury-bills)
WHAT ARE PSU BONDS? (/categories/faqs/banking-general/28-what-are-psu-bonds)
WHAT IS A COPORATE DEBENTURE? (/categories/faqs/banking-general/33-what-is-a-coporate-debenture)
WAHT IS ZERO COUPON BOND? (/categories/faqs/banking-general/121-waht-is-zero-coupon-bond)
WHAT IS SWEAT EQUTY? (/categories/faqs/banking-general/122-what-is-sweat-equty)
WHAT IS FORFEITING? (/categories/faqs/banking-general/123-what-is-forfeiting)
WHAT IS DERIVATIVE? (/categories/faqs/banking-general/124-what-is-derivative)
WHAT ARE THE TYPE OF DERIVATIVES? (/categories/faqs/banking-general/125-what-are-the-type-of-derivatives)
WHAT IS FUTURES? (/categories/faqs/banking-general/126-what-is-futures)
WHAT IS INTEREST RATE SWAP? (/categories/faqs/banking-general/127-what-is-interest-rate-swap)
WHAT IS AN OPTION? (/categories/faqs/banking-general/128-what-is-an-option)
RBI GUIDELINES ON BANK RISK MANAGEMENT SYSTEMS (/categories/faqs/banking-general/129-rbi-guidelines-on-bank-
risk-management-systems)
HIGHLIGHT ON NEW CAPITAL ADEQUACY FRAME WORK OF BIS (/categories/faqs/banking-general/130-highlight-on-new-
capital-adequacy-frame-work-of-bis)
WHAT FACTORS ARE TAKEN INTO ACCOUNT IN FIXING A PLR? (/categories/faqs/banking-general/131-what-factors-are-
taken-into-account-in-fixing-a-plr)
WHAT IS PLR? (/categories/faqs/banking-general/132-what-is-plr)
WHAT ARE THE EMERGING PROBLEM IN THE BANKING INDUSTRY? (/categories/faqs/banking-general/134-what-are-the-
emerging-problem-in-the-banking-industry)
WHAT ARE THE MAJOR RISKS TO WHICH BANKS ARE EXPOSED TO? (/categories/faqs/banking-general/135-what-are-the-
major-risks-to-which-banks-are-exposed-to)
WHAT IS SELF HELP GROUP? (/categories/faqs/banking-general/136-what-is-self-help-group)
WHAT ARE THE CHARACTERSTICS OF SELF HELP GROUP? (/categories/faqs/banking-general/137-what-are-the-
characterstics-of-self-help-group)
CAN SELF HELP GROUP MAINTAIN BANK ACCOUNT? (/categories/faqs/banking-general/138-can-self-help-group-maintain-
bank-account)
HOW THE BANK IS LINKED TO SHG? (/categories/faqs/banking-general/139-how-the-bank-is-linked-to-shg)
HOW DOES THE BANK EVALUATE? (/categories/faqs/banking-general/140-how-does-the-bank-evaluate)
WHAT IS THE ROLE OF NABARD? (/categories/faqs/banking-general/141-what-is-the-role-of-nabard)
WHAT IS RATIO ANALYSIS? (/categories/faqs/banking-general/142-what-is-ratio-analysis)
IN BREAK EVEN ANALYSIS WHAT IS CONTRIBUTION? (/categories/faqs/banking-general/182-in-break-even-analysis-what-
is-contribution)
WHAT IS P/V RATIO OR CONTRIBUTION RATIO OR MARGINAL RATIO? (/categories/faqs/banking-general/183-what-is-pv-
ratio-or-contribution-ratio-or-marginal-ratio)
WHAT IS COST VOLUME PROFIT OR BREAK EVEN ANALYSIS? (/categories/faqs/banking-general/184-what-is-cost-volume-
profit-or-break-even-analysis)
WHEN WAS NI ACT ENACTED? (/categories/faqs/banking-general/185-when-was-ni-act-enacted)
DOES NI ACT DEFINE THE TERM BANKING? (/categories/faqs/banking-general/186-does-ni-act-define-the-term-banking)
WHERE BANKING HAS BEEN DEFINED? (/categories/faqs/banking-general/187-where-banking-has-been-defined)
WHAT IS A PROMISORY NOTE, BILL OF EXCHANGE AND A CHEQUE? (/categories/faqs/banking-general/188-what-is-a-
promisory-note-bill-of-exchange-and-a-cheque)
WHETHER A DD IS A BILL OF EXCHANGE? (/categories/faqs/banking-general/189-whether-a-dd-is-a-bill-of-exchange)
WHO IS HOLDER IN DUE COURSE? (/categories/faqs/banking-general/190-who-is-holder-in-due-course)
WHAT IS PAYMENT IN DUE COURSE? (/categories/faqs/banking-general/191-what-is-payment-in-due-course)
WHAT IS AN INLAND AND FOREIGN INSTRUMENT? (/categories/faqs/banking-general/192-what-is-an-inland-and-foreign-
instrument)
WHAT IS A NEGOTIABLE INSTRUMENTS? (/categories/faqs/banking-general/193-what-is-a-negotiable-instruments)
WHAT IS NEGOTIATION? (/categories/faqs/banking-general/194-what-is-negotiation)
NAME FEW ENDORSEMENTS? (/categories/faqs/banking-general/195-name-few-endorsements)
WHEN WORDS AND FIGURES DIFFER CAN A CHEQUE BE PASSED? (/categories/faqs/banking-general/196-when-words-and-
figures-differ-can-a-cheque-be-passed)
WHAT IS INCHOATE STAMPED INSTRUMENTS? (/categories/faqs/banking-general/197-what-is-inchoate-stamped-
instruments)
UNDER WHAT SEC GOVT CAN DECLARE HOLIDAYS UNDER NI ACT? (/categories/faqs/banking-general/198-under-what-sec-
govt-can-declare-holidays-under-ni-act)
IF THE MATURITY DATE IS PUBLIC HOLIDAY WHAT TO DO? (/categories/faqs/banking-general/199-if-the-maturity-date-is-
public-holiday-what-to-do)
CAN A MINOR OPEN AN A/C, ENDORSE, NEGOTIATE? (/categories/faqs/banking-general/200-can-a-minor-open-an-ac-
endorse-negotiate)
WHAT IS THE LIABILITY OF DRAWEE OF A CHEQUE? (/categories/faqs/banking-general/201-what-is-the-liability-of-drawee-
of-a-cheque)
CAN A NEGOTIBLE INSTRUMENT BE DRAWN WIHTOUT CONSIDERATION? (/categories/faqs/banking-general/202-can-a-
negotible-instrument-be-drawn-wihtout-consideration)
WHETHER A CHEQUE PAYABLE TO A BEARER CAN BE NEGAOTIATED? (/categories/faqs/banking-general/203-whether-a-
cheque-payable-to-a-bearer-can-be-negaotiated)
A CUSTOMER OPENS AN ACCOUNT TODAY AND ISSUES A CHEQUE DATED YESTERDAY CAN IT BE HONOURED?
(/categories/faqs/banking-general/204-a-customer-opens-an-account-today-and-issues-a-cheque-dated-yesterday-can-it-
be-honoured)
WHEN A MINOR ATTAINS MAJORITY? (/categories/faqs/banking-general/205-when-a-minor-attains-majority)
WHAT IS A GARNISHEE ORDER? (/categories/faqs/banking-general/206-what-is-a-garnishee-order)
STATE FEW LAWS WHERE A BANKER IS JUSTIFIED IN RIGHTFUL DISCLOSURE? (/categories/faqs/banking-general/207-state-
few-laws-where-a-banker-is-justified-in-rightful-disclosure)
WHAT IS LIEN? (/categories/faqs/banking-general/208-what-is-lien)
WHAT ARE THE TYPES OF LIEN? (/categories/faqs/banking-general/209-what-are-the-types-of-lien)
WHAT IS A NEGATIVE LIEN? (/categories/faqs/banking-general/210-what-is-a-negative-lien)
WHAT IS ENDORSEMENT IN BLANK? (/categories/faqs/banking-general/211-what-is-endorsement-in-blank)
WHAT IS ENDORSEMENT IN FULL? (/categories/faqs/banking-general/212-what-is-endorsement-in-full)
WHAT IS CONDITIONAL ENDORSEMENT? (/categories/faqs/banking-general/213-what-is-conditional-endorsement)
WHAT IS RESTRICTIVE ENDORSEMENT? (/categories/faqs/banking-general/214-what-is-restrictive-endorsement)
WHAT IS SANS RECOURSE ENDORSEMENT? (/categories/faqs/banking-general/215-what-is-sans-recourse-endorsement)
MIS GEETHA IYER GETS MARRIED TO MR GUPTA. A CHEQUE IS IN HER FAVOUR GEETHA IYER.HOW THIS CHEQUE HAS TO
BE ENDORSED. (/categories/faqs/banking-general/216-mis-geetha-iyer-gets-married-to-mr-gupta-a-cheque-is-in-her-
favour-geetha-iyerhow-this-cheque-has-to-be-endorsed)
X AND Y MAINTAIN AN E OR S ACCOUNT.LATER X APPOINT Z AS HIS AGENT.CAN A BANKER ALLOW OPERATIONS IN THE
ACCOUNT BY Z. (/categories/faqs/banking-general/217-x-and-y-maintain-an-e-or-s-accountlater-x-appoint-z-as-his-
agentcan-a-banker-allow-operations-in-the-account-by-z)
CAN E OR S CAN BE CLOSED BY ANY ONE ACCOUNT HOLDERS. (/categories/faqs/banking-general/218-can-e-or-s-can-be-
closed-by-any-one-account-holders)
CAN F OR S ACCOUNT BE CLOSED BY FORMER ONLY? (/categories/faqs/banking-general/219-can-f-or-s-account-be-closed-
by-former-only)
X AND Y HAVE A FIXED DEPOSIT ,THEY WANT AB TO BE NAMED THERE IN DELETING THEIR NAME?
(/categories/faqs/banking-general/220-x-and-y-have-a-fixed-deposit-they-want-ab-to-be-named-there-in-deleting-their-
name)
ON THE DEATH OF THE ONE OF THE ACCOUNT HOLDERS WHETHER THE SURVIVOR ALONG WITH THE LEGAL HEIRS CAN
OPERATE THE ACCOUNT? (/categories/faqs/banking-general/221-on-the-death-of-the-one-of-the-account-holders-
whether-the-survivor-along-with-the-legal-heirs-can-operate-the-account)
CAN ANY OF THE JOINT ACCOUNT HOLDERS GIVE STOP PAYMENT INSTRUCTIIONS? (/categories/faqs/banking-
general/222-can-any-of-the-joint-account-holders-give-stop-payment-instructiions)
A FD FALLS DUE ON A HOLIDAY WHILE PROMISSORY NOTE IS ALSO DUE ON A HOLIDAY,WHEN THEY ARE DUE?
(/categories/faqs/banking-general/223-a-fd-falls-due-on-a-holiday-while-promissory-note-is-also-due-on-a-holidaywhen-
they-are-due)
CAN A FD BE NEGOTIATED? (/categories/faqs/banking-general/224-can-a-fd-be-negotiated)
CAN MINORS open JOINT ACCOUNT? (/categories/faqs/banking-general/225-can-minors-open-joint-account)
IS THERE ANY RESTRICTIONS FOR OPENING OF ACCOUNT BY MARRIED HINDU WOMEN & PARDANASHIN WOMAN ?
(/categories/faqs/banking-general/226-is-there-any-restrictions-for-opening-of-account-by-married-hindu-women-a-
pardanashin-woman-)
WHAT IS MATERIAL ALTERATION? (/categories/faqs/banking-general/227-what-is-material-alteration)
WHAT IS THE EFFECT OF PAYMENT OF A CHEQUE WHERE MATERIAL ALTERATION IS NOT APPARENT?
(/categories/faqs/banking-general/228-what-is-the-effect-of-payment-of-a-cheque-where-material-alteration-is-not-
apparent)
DISTINGUISH BETWEEN A MANDATE AND A POWER OF ATTRONEY? (/categories/faqs/banking-general/229-distinguish-
between-a-mandate-and-a-power-of-attroney)
STATE THE PRESUMPTION AS TO A NEGOTIABLE INSTRUMENTS? (/categories/faqs/banking-general/230-state-the-
presumption-as-to-a-negotiable-instruments)
WHAT ARE THE TYPES OF CROSSING? (/categories/faqs/banking-general/231-what-are-the-types-of-crossing)
WHETHER PAYMENT CAN BE EFFECTED FOR A CHEQUE ACROSS THE COUNTER WHICH HS BEEN CROSSED?
(/categories/faqs/banking-general/232-whether-payment-can-be-effected-for-a-cheque-across-the-counter-which-hs-
been-crossed)
WHICH SEC GIVES PROTECTION FOR PAYMENT IN DUE COURSE OF A CROSSED CHEQUE? (/categories/faqs/banking-
general/233-which-sec-gives-protection-for-payment-in-due-course-of-a-crossed-cheque)
CAN YET ANOTHER BANK BE MADE AS AGENT FOR COLLECTION IN ADDITION TO THE BANK MENTIONED IN CROSSING?
(/categories/faqs/banking-general/234-can-yet-another-bank-be-made-as-agent-for-collection-in-addition-to-the-bank-
mentioned-in-crossing)
WHICH SECTION GIVES PROTECTION TO THE COLLECTING BANKER? (/categories/faqs/banking-general/235-which-section-
gives-protection-to-the-collecting-banker)
WHICH SEC FASTENS THE CRIMINAL LIABILITY ON DRAWER FOR DISHONOUR OF THE CHEQUE ISSUED ?
(/categories/faqs/banking-general/236-which-sec-fastens-the-criminal-liability-on-drawer-for-dishonour-of-the-cheque-
issued-)
WHETHER ACCOUNT PAYEE ONLY HAS STATUTORY RECOGINITION? (/categories/faqs/banking-general/237-whether-
account-payee-only-has-statutory-recoginition)
CAN A CHEQUE BE PASSED AFTER THE DEATH OF THE CUSTOMER? (/categories/faqs/banking-general/238-can-a-cheque-
be-passed-after-the-death-of-the-customer)
STATE THE VARIOUS RELATIONSHIP BETWEEN A BANKER AND A CUSTOMER? (/categories/faqs/banking-general/239-state-
the-various-relationship-between-a-banker-and-a-customer)
STATE ON TAX DEDUCTION AT SOURCE? (/categories/faqs/banking-general/240-state-on-tax-deduction-at-source)
WHAT IS THE DIFFERENCE BETWEEN HYPOTHECATION AND LEASE? (/categories/faqs/banking-general/241-what-is-the-
difference-between-hypothecation-and-lease)
WHAT IS HYPOTHECATION? (/categories/faqs/banking-general/242-what-is-hypothecation)
BUY BACK OF SHARES (/categories/faqs/banking-general/243-buy-back-of-shares)
COMPLAINCE PROCEDURE FOR BUY BACK OF SHARES (/categories/faqs/banking-general/244-complaince-procedure-for-
buy-back-of-shares)
NOMINATION (/categories/faqs/banking-general/245-nomination-)
WHAT IS BANKING OMBUDSMAN SCHEME? (/categories/faqs/banking-general/246-what-is-banking-ombudsman-scheme)
WHEN WAS BANKING OMBUDSMAN INTRODUCED? (/categories/faqs/banking-general/247-when-was-banking-
ombudsman-introduced)
WHAT IS THE EXTENT AND APPLICATION OF THE BANKING OMBUDSMAN SCHEME? (/categories/faqs/banking-
general/248-what-is-the-extent-and-application-of-the-banking-ombudsman-scheme)
WHAT IS THE OBJECT OF THE BANKING OMBUDSMAN SCHEME? (/categories/faqs/banking-general/249-what-is-the-object-
of-the-banking-ombudsman-scheme)
WHAT ARE THE TYPES OF COMPLAINTS THAT CAN BE PREFERRED WITH BANKING OMBUDSMANT?
(/categories/faqs/banking-general/250-what-are-the-types-of-complaints-that-can-be-preferred-with-banking-
ombudsmant)

Developed by Raghwendra (Munna)

You might also like