Docsity
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Docsity AI
Docsity AI
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search for your university

Find the specific documents for your university's exams

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

Garnishee Order - Banking - Lecture Slides, Slides of Banking and Finance

Birla Institute of Technology and ScienceBanking and Finance

This lecture is from Banking. Key important points are: Garnishee Order, Features of Garnishee Order, Attachment Order, Income Tax Authority, Judgement Debtor, Garnishee-Banker to Judgement Debtor, Credit Balance, Case of Partnership

Typology: Slides

2012/2013

Uploaded on 01/31/2013

farooq
farooq 🇮🇳

4.3

(94)

203 documents

1 / 14

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Garnishee Order
•IF A DEBTOR FAILS TO PAY DEBT TO HIS
CREDITOR,THE CREDITOR MAY APPLY TO
THE COURT FOR ISSUING A GARNISHEE
ORDER ON THE BANKER OF HIS DEBTOR.
•THIS IS ISSUED UNDER ORDER 21,RULE 46
OF THE CODE OF CIVIL PROCEDURE,1908.
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe

Partial preview of the text

Download Garnishee Order - Banking - Lecture Slides and more Slides Banking and Finance in PDF only on Docsity!

Garnishee Order

  • IF A DEBTOR FAILS TO PAY DEBT TO HIS CREDITOR,THE CREDITOR MAY APPLY TO THE COURT FOR ISSUING A GARNISHEE ORDER ON THE BANKER OF HIS DEBTOR.
  • THIS IS ISSUED UNDER ORDER 21,RULE 46 OF THE CODE OF CIVIL PROCEDURE,1908.

GARNISHEE ORDER (Contd)

  • OBLIGATION OF A BANKER TO HONOUR HIS CUSTOMER’S CHEQUES IS EXTINGUISHED ON RECEIPT OF A GARNISHEE ORDER.
  • SUCH ORDER ATTACHES THE DEBT NOT SECURED BY A NEGOTIABLE INSTRUMENT BY PROHIBITING THE CREDITOR FROM RECOVERING THE DEBT AND DEBTOR FROM MAKING PAYMENT.
  • THUS A/C OF A CUSTOMER BECOMES SUSPENDED.

• IF THE A/C IS OVERDRAWN BANKER

OWES NO MONEY TO THE CUSTOMER

HENCE NO EFFECT OF THE ORDER.

• LIMIT AVAILABLE IN O/D OR C/C A/C

CANNOT BE ATTACHED (CANARA

BANK VRS PF COMMISSIONER-

KARNATAKA HIGH COURT)

• BANKER HAS RIGHT TO SET OFF ANY

DEBT BEFORE ATTACHMENT IF IT IS

DUE

• ORDER IS NOT APPLICABLE TO

CHQ/DD/BILLS UNDER COLLECTION

AT THE TIME OF ORDER-BUT ONCE IT

IS COLLECTED AND CREDITED TO

THE A/C THE ORDER IS APPLICABLE.

• THE SALE PROCEEDS OF THE

CUSTOMERS’ SECURITIES TILL NOT

CREDITED ARE NOT ATTACHABLE.

• CHQ PASSED FOR PAYMENT BUT NOT

PAID IS TO BE STOPPED.

• AMOUNT TRANSFERRED FROM THE

A/C TO ANOTHER A/C IS A MERE BOOK

TRANFER TILL THE OTHER A/C

HOLDER IS INTIMATED BY THE BANK

AND THEREFORE IT IS ATTACHABLE.

• CHQ RECEIVED IN CLEARING AND

PAID BEFORE RETURNING TIME IS

VALID IF THE ORDER IS RECEIVED

AFTER RETURNING TIME.

• MONEY HELD ABROAD BY THE

JUDGEMENT DEBTOR IS NOT

AFFECTED

• SECURITY HELD IN SAFE CUSTODY IS

NOT AFFECTED

• IN CASE OF JOINT A/C---SUCH A/C

CANNNOT BE ATTACHED IF ONLY ONE

IS JUDGEMENT DEBTOR.

• IN CASE OF PARTNERSHIP A/C---IF

THE FIRM IS JUDGEMENT DEBTOR

BOTH THE FIRM AS WELL AS THEIR

PERSONAL A/CS CAN BE ATTACHED

AS THEY ARE JOINTLY AND

SEVERALLY LIABLE.

• IF A PARTNER IS JUDGEMENT

DEBTOR---ONLY HIS PERSONAL A/C

CAN BE ATTACHED AND NOT THAT OF

FIRM OR PERSONAL A/C OF OTHER

PARTNERS.

• TRUST A/C---A TRUSTEE HOLDS THE

FUND FOR SOMEONE ELSE.COURT

SHOULD BE INFORMED IF THE A/C IS

AS SUCH.

INCOME TAX (CONTD)

• BALANCE IN JOINT A/C IS ALSO

ATTACHABLE EVEN IF ONE OF THEM

IS INVOLVED.THE SHARE TO BE

PRESUMED 50 50 UNLESS

OTHERWISE IS PROVED.

• A BANKER IS DISCHARGED ONCE THE

PAYMENT IS MADE.

• NON-COMPLIANCE WILL MAKE THE

BANK DEEMED ASSESSEE.

• JUDGEMENT DEBTOR-WHOSE MONEY

IS FROZEN

• JUDGEMENT CREDITOR-ON WHOSE

REQUEST ORDER IS ISSUED

• GARNISHEE-BANKER TO JUDGEMENT

DEBTOR