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Legal Aspects of Banking :: GARNISHEE ORDER



1. Garnishee order is issued under which of the following------------

a)   Civil Procedure code 
b)   Criminal Procedure code
c)   Indian Contract Act.
d)   Banking regulation Act.
a


2. A Garnishee order is issued by -------------

a) The RBI to scheduled bank for stopping payment in an account.  
b) The competent court for attaching funds due to a judgement debtor by a third party for payment to the judgement creditor. 
c) The Income Tax Recovery Officer attaching funds in the account maintained by the bank. 
d) The district Magistrate requiring the bank to remit to his office a certain sum of money to the debit of particular account. 

b


3. In the process of issuing a Garnishee order court first issues------------

a) Order Nisi
b) Order primary
c) Order attachment
d) Order absolute

a


4. Who is a garnishee in case of a bank account, where a garnishee order is served?

a)   Judgement debtor
b)   Judgement creditor
c)   Judgement debtor’s debtor
d)   Cash credit customer
c


5. Your branch has received a garnishee order for the account of Mr. ‘X’. What is the first action you are required to take?

 a)   After paying the amount to the court, the customer be informed.
 b)   After paying the amount to Judgement creditor, the customer be informed.
 c)   Stop operations and inform customer
 d)   None of the above
c


6. If the garnishee order is received on a firm’s account, what would be the position of individual account of partners being maintained with same bank branch?

a)   The order will be applicable
b)   The order will not be applicable
c)   It will be applicable through special order of court
d)   None of the above
a



7.       Which of the following conditions are to be fulfilled for a garnishee order to be applicable?
(a)     the debt should be due or accruing due
(b)     Money should belong to the customer in his own right
(c)     the amount in the account should be a credit balance  
(d)     all of these                                                                 

d


8.       The garnishee mentioned in a garnishee order served by court under CPC, 1908 is:
(a)     The customer having an account with the Bank
(b)     The bank on which the order was served
(c)     The court which issued the order                                                          

b

9.       Mr. Sinha enjoys an overdraft limit of Rs.20,000/-.  The bank has received Garnishee order for Rs.5,000/- when the debit balance in the account is Rs.10,000/-.
(a)     Bank is bound to comply with the garnishee order as there is an arrangement to overdraw
(b)     Bank is bound to comply with the order as even after paying the garnishee order the balance will be within limit.
(c)     Bank is not bound to comply with the order as the bank owes no money to the customer
(d)     None of the above                                                               
         

c


10.        Garnishee order applies to
(a)     Cheque sent for collection but proceeds not received till time of receipt of order
(b)     Sale proceeds of shares lodged with the bank proceeds of which have not been received till the time of receipt of order
(c)     Money deposited by the customer after the time of receipt of order
(d)     None of the above                                            
d

11.    Garnishee Order is issued under Provisions of
(a)     Civil Procedure Code 1908, Order 21, Rule 46
(b)     Criminal Procedure Code      
(c)     Income Tax                                                                 
a


12.       The garnishee mentioned in a garnishee order served by a court under C.P.C.1908 is ___
          a)      The customer having an account with the Bank
          b)      The bank on which the order was served  
          c)      The court which issued the order
          d)      None of the above                                                                ]
b


13.       Mr. Ram enjoys an overdraft limit of Rs. 20000/-. The bank has received Garnishee order for Rs. 5000/- when the debit balance in the account is Rs. 10000/-
          a)      Bank is bound to comply with the garnishee order as there is an arrangement to overdraw
          b)      Bank is bound to comply with the order as even after paying the garnishee order the balance will be within limit
          c)      Bank is not bound to comply with the order as the bank owes no money to the customer
          d)      None of the above     

c


14.When a ‘Garnishee Nisi’ is served, the Banker should:
a) Pay the balances to the judgment Debtor.
b) Pay the amount as the Branch Manager feels it right.
c) Stop operations in the judgment debtor’s a/c upto amount mentioned in the garnishee order & allow the operations for balance amount.
d) None of these.

c

15. When Court issues Garnishee Order, the Bank is known as:
a) Garnishee                         b) Judgment Debtor
c) Judgment Creditor            d) None of these

a


16.Which of the following account is not attachable by service of garnishee order?
a) Balance in Current account                b) Balance in SB account
c) Balance in SB account held RD        
d) Balance in FOR maturing one year later.  
e) Balance representing cheque sent in clearing, not yet cleared..

e

17.   A   Garnishee   order   does   not extend to the following:
a)   Term Deposits maturing after 2 years
b)   Credit balance in CC accounts
c)   Current Account
d)   None of the above.

d









18. Which of the following is Garnishee under a Garnishee Order? .
a) Judgement Creditor
b) Judgement Debtor
c) Bank
d) None of these






c



19.A garnishee order has been received in the name of Mr. X who is associated with the following accounts maintained with your branch. In which of these accounts the order would be applicable:
A:      account in the name of his minor wife under his guardianship
B:      overdraft account having un-availed limit of Rs.35000
C:      account of a trust where he is the sole trustee
D:      none of the above
         

d
20.
Garnishee order can be issued by a
a. creditor
b. debtor
c. Bank
d. none
d
21.
In garnishee order, the bank is a-
a. Paying Banker
b. Garnishee
c. Judgement Debtor
d. Judgement Creditor
b
22.
The Garnishee Order is applicable when the relationship between the two is-
a. Bailor- Bailee
b. Trustee-Beneficiary
c. Principal-Agent
d. Debtor-Creditor
d





Legal Aspects of Banking :: GARNISHEE ORDER Reviewed by Manohar Veera on 8:57:00 PM Rating: 5

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