Garnishee Order

Code of Civil Procedure, 1908 — Order XXI Rule 46

A court order directing a third party (the "garnishee") who owes money to the judgment debtor to pay that money directly to the decree holder instead. Under Order XXI Rule 46 CPC, a bank where the judgment debtor holds a deposit can be served a garnishee order and required to pay the balance to the creditor.

After obtaining a Recovery Certificate from DRT, the bank applies for a garnishee order against the borrower's accounts maintained at other banks.

In practice, a garnishee order is how a decree-holder reaches money the judgment debtor cannot hide, by intercepting it in the hands of someone who owes it to the debtor. Under Order XXI Rule 46 of the CPC, the court directs that third party, the garnishee, to pay the debtor's money directly to the creditor instead. The most common target is a bank where the debtor maintains a deposit: after securing a Recovery Certificate, the creditor identifies such accounts and applies to attach the balances. The leverage is real because it does not depend on the debtor's cooperation, but it requires accurate intelligence, the creditor must name the right garnishee and the right account, and the debt owed to the judgment debtor must be ascertainable and presently payable. A garnishee wrongly served, or served over a contingent or non-existent debt, can resist the order. For the debtor, a garnishee notice often signals that asset-tracing has succeeded. Well-advised creditors verify the account and balance before applying.