§ Who is who

The decree-holder, who has a decree against the judgment-debtor and applies for execution.

The judgment-debtor, who owes the decree, and who is himself a creditor of a third person.

The garnishee, that third person, who owes a debt to the judgment-debtor. He is a stranger to the decree, and the whole point of the procedure is to reach his debt without requiring a fresh suit.

The idea. Instead of the garnishee paying the judgment-debtor, who would then have to be pursued, the court redirects the payment into court for the decree-holder's benefit.

§ Rule 46: the starting point

In the case of a debt not secured by a negotiable instrument, attachment is made by a written order prohibiting the creditor, that is the judgment-debtor, from recovering the debt and the debtor, that is the garnishee, from making payment thereof until the further order of the court.

But the prohibitory order only freezes. It stops the debt being paid away; it does not compel the garnishee to pay anyone, and it gives the decree-holder nothing until the court acts further.

That is the gap Rules 46A to 46I fill.

§ Order XXI Rule 46A (in substance)

(1) The Court may, in the case of a debt other than a debt secured by a mortgage or a charge, which has been attached under Rule 46, upon the application of the attaching creditor, issue notice to the garnishee liable to pay such debt, calling upon him either to pay into Court the debt due from him to the judgment-debtor, or so much of it as may be sufficient to satisfy the decree and the costs of execution, or to appear and show cause why he should not do so.

(2) An application under sub-rule (1) shall be made on affidavit verifying the facts alleged and stating that in the belief of the deponent the garnishee is indebted to the judgment-debtor.

(3) Where the garnishee pays into Court the amount due from him, or so much as is sufficient to satisfy the decree and the costs, the Court may direct that the amount be paid to the decree-holder towards satisfaction of the decree and the costs of execution.

He pays into Court

R. 46A(3)

The Court may direct the amount to be paid to the decree-holder towards satisfaction of the decree and the costs of execution

He neither pays nor shows cause

R. 46B

The Court may order him to comply with the terms of the notice, and on such order EXECUTION MAY ISSUE AS THOUGH SUCH ORDER WERE A DECREE AGAINST HIM

He disputes liability

R. 46C

The Court may order that any issue or question necessary to determine liability be TRIED AS IF IT WERE AN ISSUE IN A SUIT, and pass such order as it deems fit on the determination

§ The proviso to Rule 46C

Where the debt in respect of which the application under Rule 46A is made is for a sum beyond the pecuniary jurisdiction of the executing court, that court shall send the execution case to the Court of the District Judge to which it is subordinate.

The District Judge, or the court to which he transfers it, then deals with the case as if it had been originally instituted in that court.

Why. Trying the garnishee's liability is in substance trying a claim on a debt, and a court cannot decide a claim beyond its pecuniary limits merely because it arises in execution.

Rule 46D

Where it is suggested by the garnishee that the debt BELONGS TO SOME THIRD PERSON, or that a third person has a LIEN OR CHARGE on or other interest in it, the Court may order that person to appear and state and prove the nature and particulars of his claim

Rule 46E

After hearing that person, or where he does not appear when ordered, the Court may make such order as is provided above, or such other order upon such terms with respect to his lien, charge or interest as it deems fit and proper

Rule 46F

Payment made by the garnishee on notice under Rule 46A, or under any such order, shall be a VALID DISCHARGE to him as against the judgment-debtor and any other person ordered to appear, ALTHOUGH THE DECREE OR THE ORDER MAY AFTERWARDS BE SET ASIDE OR REVERSED

Rule 46G

The costs of any application under Rule 46A and of any proceeding arising from or incidental to it are in the DISCRETION OF THE COURT

Rule 46H

An order made under Rule 46B, 46C or 46E shall be APPEALABLE AS A DECREE

Rule 46I

Rules 46A to 46H apply, so far as may be, in relation to NEGOTIABLE INSTRUMENTS attached under Rule 51, as they apply in relation to debts

§ Why Rule 46F matters most to the garnishee

The garnishee is a stranger to the decree. He is asked to pay a debt he owes to one person into a court that is enforcing somebody else's decree.

Without protection he would face a double liability, if the decree were later reversed and the judgment-debtor then sued him for the same debt.

Rule 46F removes that risk. Payment under the notice or the order is a valid discharge against the judgment-debtor, although the decree or the order in the garnishee proceedings may afterwards be set aside or reversed.

The consequence. A garnishee who pays as directed is safe; the adjustment between the decree-holder and the judgment-debtor, if the decree falls, is made by restitution under Section 144.