In case a debtor fails to pay the money due to is creditor, the latter may apply to the court to issue a
garnishee order, on the debtor‘s banker. As a result of this order the debtor‘s account with the bank is frozen and the bank cannot make any payment out of the account. The creditor, on whose request such an order is issued is called the judgement creditor, the debtor, whose account is frozen is called the judgement debtor and the banker who has the customer‘s account is called the Garnishee.
Garnishee Order is issued by the Court is two parts :
01. Rule/Order Nishi.
(a) Asks the banker to freeze the debtor‘s account.
(b) asks the banker to explain why the funds in the account, so freezed should not be used for payment of judgement creditor.
On receipt of such an order the bank should immediately inform the customer so that he may make the necessary arrangements for payments of the debts due by him.
02. Order Absolute:
This order directs the banker to pay either the whole or a part of the funds lying in the account against
which ―Order Nishi‖ has been issued to the judgement creditor.