Vinayak maintains an account with the bank. A court attachment order for ₹ 10,000 on the account is received. State the action that will be taken in the following situations : (ii) Vinayak has tendered ₹ 5,000 for purcha
CS Professional · Banking - Law and Practice · PYQS · June 2018
Vinayak maintains an account with the bank. A court attachment order for ₹ 10,000 on the account is received. State the action that will be taken in the following situations : (ii) Vinayak has tendered ₹ 5,000 for purchase of a draft.
Answer & Explanation:
Only debts 'owing and accruing due' to the judgement debtor at the hands of the Bank are attached by a Garnishee order. The amount tendered for purchase of a draft is entrusted for a specific purpose, and therefore, cannot be considered a debt; hence it is not attachable.
Topics: Banking Law and Practice
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