Civil Procedure Code - Garnishee, Garnishee Order and Garnishee Proceedings (R 46A to 46I)

Let us understand this by an example.

Recently Delhi High Court passed Garnishee order against 55 entities (Individuals, Companies) to not pay the money they owe to Ranbaxy-Fortis owner and instead that money to be deposited in Court.

Here is news clip.

Here are the facts of the case:

Ranbaxy-Forits promoters owes money to Japani Company Daaichi.

Decree was passed in favor of Daaichi.

Daaichi didn't get money.

Judgment Debtor is not giving money

So court had asked the people who owes money to judgment debtor not to pay such money. So these third party people are garnishee.

To summarize:

We can infer what garnishee mean and what garnishee order mean

Now once the Garnishees are order to pay money, garnishee may deny any debt, he may say the debt belong to third person so on and so forth. Then new set of proceeding start in a court. Such proceedings called as Garnishee proceedings.

First notice is issued to Garnishee for payment of money. He/She has to file a reply.

If no reply is filed, Court issue order for payment of debt to court instead of judgment debtor. Such order will become decree against garnishee.

Garnishee may deny the liability or debt. Then court has to verify whether garnishee really don't owe to judgment debtor.

And then proceedings continue.

These proceedings can be summarized as below:

Bit history about this. These provisions were not in place before 1976 amendments. By this provisions Decree holder or judgment creditor's interests are protected.

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