company law
This query is : Resolved
03 April 2010
what is GARNISHEE ABSOLUTE used in relation with a creditor under registration of charges?
04 April 2010
A garnishee is a debtor''s debtor. In a garnishee proceeding, three parties are involved: a judgement debtor, a judgement creditor, and a garnishee.
A judgement creditor is one who has obtained a decree against another. Judgment debtor is the person against whom the decree is granted and a garnishee is a person who is presumed to be indebted to the judgment debtor.
Illustration
A owes B Rs 2,000/. A refuses to repay the amount. B sues A and obtains a decree in his favour. Here B judgement creditor and A is the judgement debtor. B comes to know that A has some money in a bank account and would like to have his decree satisfied by attaching the funds in the hands of A's bank. For this purpose he approaches a court and obtains a Garnishee order attaching funds at the bank standing to the credit of A. The bank being a debtor of its customer, in this eg, A, is the garnishee
Garnishee order is received in two stages i.e. Order Nisi and Order Absolute
In garnishee nisi, the garnishee is enabled to show cause why the amount in his hands (really belonging to the judgement debtor) should not be attached. It may be noted that a notice is sufficient to freeze the amount in the hands of the garnishee. However it can be vacated in a court of law.
When the garnishee order is confirmed it is called garnishee absolute
A judgement creditor is one who has obtained a decree against another. Judgment debtor is the person against whom the decree is granted and a garnishee is a person who is presumed to be indebted to the judgment debtor.
Illustration
A owes B Rs 2,000/. A refuses to repay the amount. B sues A and obtains a decree in his favour. Here B judgement creditor and A is the judgement debtor. B comes to know that A has some money in a bank account and would like to have his decree satisfied by attaching the funds in the hands of A's bank. For this purpose he approaches a court and obtains a Garnishee order attaching funds at the bank standing to the credit of A. The bank being a debtor of its customer, in this eg, A, is the garnishee
Garnishee order is received in two stages i.e. Order Nisi and Order Absolute
In garnishee nisi, the garnishee is enabled to show cause why the amount in his hands (really belonging to the judgement debtor) should not be attached. It may be noted that a notice is sufficient to freeze the amount in the hands of the garnishee. However it can be vacated in a court of law.
When the garnishee order is confirmed it is called garnishee absolute
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Banking Related Issue
- Traces submitting correction statement error
- Difff in ais receipts and gst turnover
- ASMT-10 received from A O
- IT returns for fresh job holders
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
