A garnishee order is a legal process that allows a creditor to seek payment from a third party, such as an employer or a bank, who holds money or property belonging to the debtor. The creditor must obtain a court order to issue a garnishee order, which directs the third party to pay the creditor directly from the debtor's funds or property held in their possession.
The purpose of a garnishee order is to ensure that the creditor is able to recover the debt owed to them, even if the debtor is unable or unwilling to pay. It allows the creditor to pursue payment from a source other than the debtor, which may be more likely to have the financial resources to pay the debt.
Garnishee orders are commonly used in cases where the debtor has a steady income or holds significant assets, such as a bank account or investment account, that can be used to pay the debt. For example, if an individual has a judgment against them for a debt and is employed, their employer may be served with a garnishee order directing them to deduct a certain amount from the debtor's wages each pay period and send it to the creditor. Similarly, if the debtor has a bank account or investment account, the creditor may seek a garnishee order directing the financial institution to transfer the funds to the creditor.
It's important to note that a garnishee order is not the same as a garnishment, which is a similar process but applies only to wages or salary. Garnishee orders can be issued for any type of debt, including credit card debt, medical bills, or a judgment against the debtor in a lawsuit.
If you have been served with a garnishee order, it's important to understand your rights and obligations. You should seek legal advice if you are unsure about how to respond to the order, as failing to comply with a garnishee order can result in legal consequences. If you are the debtor and believe that a garnishee order has been issued improperly, you may have the right to challenge it in court.
In summary, a garnishee order is a legal process that allows a creditor to seek payment from a third party, such as an employer or bank, who holds money or property belonging to the debtor. It is a way for the creditor to recover a debt when the debtor is unable or unwilling to pay, and can be used for any type of debt. If you are involved in a garnishee order, it's important to understand your rights and obligations and seek legal advice if necessary.
Garnishment
The payment made by the garnishee into the court pursuant to the notice shall be treated as a valid discharge to him as against the judgment debtor. Thus, even though the application by the judgment creditor is brought by way of motion ex-parte for order Nisi, the judgment debtor is expected to be heard in the proceedings that would lead to the making of the order absolute. For example, in most United States states, the offending third party, i. According to R 11, where property is under attachment by virtue of the provisions of O 38 and a decree is subsequently passed in favor of the plaintiff, it shall not be necessary upon an application for execution of such decree to apply for attachment of the property. The appellant disputed his liability with regard to amount due to judgment debtor. If your employer receives a garnishee order they must take an amount of money from your wage and pay it to the other party. Order 21 Rule 46 F The object of this rule is to discharge the garnishee from his liability to his own creditor, judgment debtor and any other person ordered to appear under R 4 D for the amount paid or levied.
What is a Garnishee?
Can my bank account be garnished without notice? The order nisi is served on the judgment debtor and Garnishee 14days before the adjourned date for hearing. Now, we have got a complete detailed explanation and answer for everyone, who is interested! However, one option which can take debtors by surprise is a Garnishee Order, also known as a Third Party Debt Order — largely because by the time a debtor is aware that an order has been made, their funds have already been frozen! Garnishment is not, however, an attachment. Mantri Prasada Agnihotrudu and others, the petitioner filed suit for recovery. However, right of set off is available to bank before applying the order. The Garnishee order is an order issued by the Court to garnishee Bank whereas the IT attachment is the attachment on assessee's credit balance in the bank by Income tax department. The primary object of a garnishee order is to make the debt due by the debtor of the judgment debtor available to the decree holder in execution without driving him to the suit.
What is a Garnishee Order and When Should I Obtain One?
A garnishee order which enables a judgment-creditor to obtain satisfaction of his claim in a summary proceeding is a matter of procedure, similar in scope as in the case of a judgment on admission under Order 12 Rule 6 of the Civil Procedure Code or the summary procedure in suits to recover debts or liquidated demands as prescribed in Chapter XIII-A of the Original Side Rules. The further proceedings are in execution of that decree and against the garnishee. As a result, the Judgment Creditor can still use a Garnishee Proceedings to enforce the judgment. It is also the duty of the court that while exercising the discretionary power, the power is not misused and the innocent is not harassed. Also, government entities, for example, the Internal Revenue Service IRS , can recover the money without initiating garnishment proceedings. Transfer of entire land has also been made by the salt department to TIDCO in pursuance of the order dated 6-1-1999 by the government of India.
