Glossary

What is attachment of property?

Attachment is the court's way of freezing a debtor's assets. It can be ordered before judgment, to stop a buyer from disposing of property to defeat the claim, and after a decree, as the first step to selling the property and paying the creditor.

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Short answer

Attachment of property is a court order prohibiting the owner from transferring, charging or dealing with specified property, and making any such dealing void against claims enforceable under the attachment. Before judgment, Order XXXVIII Rule 5 CPC allows attachment where the defendant is about to dispose of or remove property to obstruct execution of a future decree. After a decree, Order XXI provides for attachment of movable property (Rule 43), debts and shares (Rule 46), salary (Rule 48) and immovable property (Rule 54), followed by sale. Section 60 lists property exempt from attachment.

How attachment works in India

Before judgment, the supplier applies with an affidavit showing specific facts, such as the buyer listing its factory for sale, closing accounts or shifting stock, and the court may direct the buyer to furnish security or attach the property. Courts grant this sparingly, so evidence matters. In execution, the decree holder identifies the property; movables are seized or ordered not to be transferred, bank balances are attached through garnishee orders, and immovable property is attached by a prohibitory order proclaimed at the property and communicated to the Sub-Registrar. If the debtor still does not pay, the property is sold by court auction and the proceeds applied to the decree.

AssetRuleTypical speed
Bank balanceOrder XXI Rules 46 to 46I (garnishee)Weeks
Stock, vehicles, machineryOrder XXI Rule 43Weeks to months
Receivables from customersOrder XXI Rule 46Weeks
Land and buildingOrder XXI Rule 54, then sale under Rules 64 to 94Months to years

Why it matters for getting paid

Attachment is the pressure point. A buyer whose factory, stock or account is attached cannot run normally, and attached property cannot be quietly sold to a relative. Attachment before judgment is also the recognised "urgent interim relief" that lets a supplier skip pre-institution mediation when the buyer is dissipating assets. See garnishee order, decree and execution and the Commercial Courts Act.

How FundRaksha uses it

FundRaksha's advocates gather asset information from the start: MCA charge filings, property mentioned in the buyer's correspondence, vehicles and stock seen at delivery, and bank details. Where a buyer shows signs of winding down, they seek attachment before judgment; after an award or decree, they attach the quickest assets first. Fee: 30% of what is recovered, nothing upfront. FundRaksha has handled ₹50 Cr+ of invoices across India.

Worked example (hypothetical)

A Kanpur leather supplier is owed ₹14,00,000 by a tannery that has stopped operations and advertised its machinery for sale. The supplier files a commercial suit with an application under Order XXXVIII Rule 5, citing the advertisement and a bounced cheque, and seeks urgent attachment, which also excuses pre-institution mediation. The court directs the tannery to furnish security of ₹14,00,000 within two weeks or face attachment of the machinery. The tannery fails to furnish security; the machinery is attached. Facing an auction, the owner arranges finance and pays ₹14,00,000 plus costs within two months.

Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.

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  • A review of your invoices, purchase orders, delivery proof and the buyer’s replies
  • An honest assessment of recovery chances and the right route: reminders, legal notice, MSME Samadhaan, Section 138 or a civil suit
  • A realistic timeline and the exact cost: nothing upfront, a success fee only on recovery
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Keep these ready
  • The unpaid invoice(s) and payment terms
  • Purchase order, delivery challan, e-way bill or proof of service
  • Messages, emails or letters about the payment
  • For a bounced cheque: the cheque and the bank return memo

No recovery, no fee. Court fees, if any, are borne by the client and told upfront.

FAQ

Questions, answered

No. Before judgment the court needs evidence that the defendant is about to dispose of or remove property to obstruct a future decree. Non-payment alone is not enough.

This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.