Definition
A court order in execution of a decree that attaches a debt owed by a third party (the garnishee) to the judgment debtor — directing the third party to pay the debt to the decree-holder rather than to the judgment debtor.
A garnishee order is issued in two stages: (a) nisi order — a show cause notice to the garnishee (the third party who owes money to the judgment debtor) asking why the debt should not be attached; and (b) absolute order — if the garnishee fails to show cause, the court makes the order absolute, directing the garnishee to pay the debt to the decree-holder. The garnishee may contest by showing: the debt is not owed; the debt is already attached; there are competing claims; or there are other legal reasons not to pay. The procedure converts a debt owed by the garnishee to the judgment debtor into a payment to the decree-holder.
Statutory Definition
Order XXI Rule 46, Code of Civil Procedure, 1908: 'Where a decree is for the payment of money, the Court may, on the application of the decree-holder, order that payment to be made into court of any debt due or accruing due to the judgment-debtor from the garnishee.' Rule 46-A to 46-I: detailed procedure for attachment of debts — show cause notice (nisi), absolute order, payment into court.
Etymology & Origin
From Old French 'garnir' (to warn, to garnish, to prepare) — a garnishee is one who is warned or notified to hold money belonging to another. The 'garnishee order' warns the third party not to pay the judgment debtor but to pay the decree-holder instead.
Full Legal Analysis
Garnishee Order: Intercepting Money on Its Way to the Judgment Debtor
A garnishee order intercepts money at the source. Instead of waiting for the judgment debtor to receive money from a third party and then seizing it, the garnishee order reaches into the third party’s hands and diverts the payment directly to the decree-holder. It is one of the most effective execution mechanisms — particularly where the judgment debtor has money in a bank account or outstanding invoices from customers.
The Two-Stage Process
(a) Garnishee order nisi: The court issues an order to the garnishee (typically a bank, a debtor of the judgment debtor, or an employer) requiring them to appear on a specified date and show cause why the debt they owe to the judgment debtor should not be attached. The nisi order also directs the garnishee not to pay the judgment debtor in the meantime. (b) Garnishee order absolute: If the garnishee fails to appear, fails to show sufficient cause, or acknowledges the debt, the court makes the order absolute — the garnishee is directed to pay the debt (up to the decretal amount) into court. The payment is then disbursed to the decree-holder.
Banks as Common Garnishees
The most common garnishee is a bank holding the judgment debtor's accounts. A garnishee order on a bank: (a) prevents the bank from paying money to the account holder (judgment debtor); (b) requires the bank to disclose the balance in the account; and (c) directs the bank to pay the balance (up to the decree amount) to the court. Banks must comply immediately on receiving the nisi order — failure constitutes contempt. The garnishee order absolute is then served and the bank pays into court.
“A garnishee order reaches into the pocket of the judgment debtor’s creditors and diverts their payment to the decree-holder. It is the most direct form of execution — instead of chasing the judgment debtor’s assets, the court intercepts money before it reaches them.”
This Term in Indian Statutes
Code of Civil Procedure, 1908, 1908
"Where a decree is for the payment of money, the Court may, on the application of the decree-holder, order that payment to be made into court of any debt due or accruing due to the judgment-debtor from the garnishee."
Garnishee order: attachment of debt owed to judgment debtor by third party (garnishee) — nisi order then absolute order
