A garnishee order is an order in execution under Order XXI Rules 46 to 46I of the CPC by which the court attaches a debt owed by a third party (the garnishee) to the judgment debtor and directs the garnishee to pay it into court or to the decree holder. The commonest garnishee is the judgment debtor's bank, whose credit balance is a debt owed to its customer. The garnishee may dispute liability, in which case the court decides the question summarily.
How a garnishee order works in India
- Decree holder applies in the execution petition identifying the garnishee (bank branch and, if known, account number) and the amount.
- Court issues a prohibitory order (Rule 46) to the garnishee not to pay the debt to the judgment debtor, and a notice (Rule 46A) to show cause why it should not pay the decree holder.
- The bank freezes the balance up to the attached sum and reports to the court.
- If the garnishee does not dispute, the court orders payment to the decree holder (Rule 46B); if it disputes, the court tries the issue summarily (Rule 46C).
- Payment under the order discharges the garnishee's liability to the judgment debtor (Rule 46F).
Why it matters for getting paid
For an operating business, a frozen current account stops salaries, supplier payments and GST remittances. Buyers who have ignored notices, suits and even the decree usually pay within days of a garnishee attachment. Suppliers should therefore record the buyer's bank details from every cheque and receipt; they are the key to execution. Read the entries on decree and execution and attachment of property.
How FundRaksha uses it
FundRaksha's advocates file the garnishee application with the execution petition, using bank details collected from the buyer's cheques, NEFT receipts and e-way bills during the case, and name the buyer's known customers as additional garnishees where receivables are substantial. This is often the step that converts a paper award into one of the 700+ paid outcomes. Fee: 30% on recovery.
Worked example (hypothetical)
A Faridabad fasteners manufacturer holds an MSEFC award for ₹5,00,000 principal and ₹1,06,700 interest (12 months at 19.5% with monthly rests, assuming a 6.5% bank rate). The buyer neither deposits 75% nor pays. The manufacturer files execution in Gurugram, where the buyer banks, with a garnishee application naming the buyer's bank and account from a bounced cheque. The court issues a prohibitory order; the bank freezes ₹6,06,700 plus post-award interest. The buyer's director appears within a week and pays ₹6,20,000 (including costs) to lift the attachment.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.