Order 21 Rule 46-I : Application to negotiable..
The Code Of Civil Procedure 1908
Order 21 :
Rule 46-I :
1.[Application to negotiable instruments :
The provisions of rule 46A to 46H (both inclusive) shall, so far as may be, apply in relation to negotiable instruments attached under rule 51 as they apply in relation to debts.]
State Amendment :
High Court Amendments-Rules 46-A to 46-1-[Andhra Pradesh] :
Same as those of Madras-(5-1-1961).
[Bombay].-In Order XXI, for the existing rules 46-A to 46-I, substitute the following rules:
"Rule 46-A. Payment of debt or amount under negotiable instrument or delivery of movable property in Court, etc. in the hands of garnishee.-(1) Upon the application of the decree-holder, the Court may in the case of,
(1) any debt (other than a debt secured by a mortgage or a charge or a negotiable instrument) of which the Civil Courts are not precluded from adjudicating upon by any law for the time being in force and which has been attached under rule 46 of this Order; or
(2) any movable property not in possession of the judgment-debtor which has been attached under rule 46 of this Order; or
(3) any negotiable instrument which has been attached under rule 51 of this Order;or
(4) any movable property of the nature referred to in (1) to (3) above in the custody of any public officer other than officer of any Court, which has been attached under rule 52 of the Order, issue notice to any person liable to pay to the judgment-debtor such debt or the amount due under such negotiable instrument or liable to deliver such movable property or to account or it to the judgment-debtor (hereafter referred to as "the garnishee") calling upon him within the period specified in the notice either to pay into Court the said debt or amount payable under the said negotiable instrument or deliver into Court the said movable property, as the case may be, or so much thereof as may be sufficient to satisfy the decree ororder and the cost of execution or to appear before the Court and show cause why he should not be ordered to do so.
The notice shall be served on the garnishee and, if the Court so directs on the judgment-debtor also. The notice shall be served eight clear days before the returnable date thereof:
Provided that, subject to the proviso to rule 46-C, if by any law for the time being in force, the jurisdiction to adjudicate upon the debt or claim relating to the negotiable instrument or movable property in respect of which the application aforesaid is made is conferred on a Civil Court other than the execution Court, the Court shall send the execution case to the District Court to which the said Court is subordinate and thereupon the District Court shall transfer the case to the competent Court and on such transfer the Court to which the case is transferred will deal with it in the same manner as if it had been originally instituted in that Court.
Explanation.-When the District Court itself is the competent Court it may deal with the case in the same manner as if it had been originally instituted in that Court.
(2) Such application 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 or that the property belongs to the judgment-debtor.
Rule 46-B. Order against garnishee.-Where the garnishee does not within the time specified in the notice or within such time as the Court may allow to pay into Court the said debt or the amount payable under the said negotiable instrument or does not deliver into Court the said property or so much of the debt or amount or property as is sufficient to satisfy the decree or order and the cost of the execution or does not appear and show cause in answer to the notice, the Court may order the garnishee to comply with the terms of such notice or pass such other order as it may deem fit.
Rule 46-C. Determination of disputed questions.-If the garnishee disputes his liability, the Court instead of making such order may order that any issue or question necessary for determining his liability be tried as though it were an issue in a suit; and upon the determination of such issue shall pass such order upon the notice as it may think fit:
Provided that if the amount of the debt or the amount payable under the negotiable instrument or the value of the property in respect of which the application aforesaid is made exceeds the pecuniary jurisdiction of the Court, the Court shall send the execution case to the District Court to which the said Court is subordinate and thereupon the District Court or any other competent Court to which it may be transferred by the District Court will deal with it in the same manner as if it had been originally instituted in that Court.
Rule 46-D. Discharge of garnishee.-If the garnishee appears in answer to the garnishee notice shows cause to the satisfaction of the Court, the notice shall be dismissed and upon such dismissal the attachment ordered under rule 46, 51 or 52 of this Order shall stand raised and the prohibitory order, if any, shall stand discharged.
Rule 46-E. Adjudication of claims by third party.-Whenever in the course of proceedings against the garnishee it is alleged or appears to the Court to be probable that some person other than the judgment-debtor is or claims to be entitled to the debt attached or the amount payable under the negotiable instrument or the property attached or claims to have a charge or lien upon or interest in such debt or amount or property the Court may order such third person to appear before it and state the nature of his claim with particulars thereof, and, if necessary, prove the same.
Rule 46-F. Claim of third person to be tried as in a suit.-After hearing such third person and any other person who may subsequently be ordered to appear, or in case of such third person or other person not appearing when ordered, the Court may pass such order as is provided under rule 46-B, 46-C or 46-D or such other order or orders upon such terms, if any, with respect to the lien or charge or interest if any of such third or other person as it may deem fit and proper including an order that any question or issue necessary fordetermining the validity of the claim of the third or other person be tried as though it were an issue in a suit.
Rule 46-G. Execution of order under rules 46-B, 46-C and 46-F.-(a) An order made by the Court under rule 46-B, 46-C or 46-F against the garnishee shall be executable as if it were a decree of the Court in favour of the decree-holder.
(b) When money or negotiable instrument or property is received in Court as a result of an order under rule 46-B, 46-C or 46-F above, the money shall not be paid and further steps in execution in respect of the negotiable instrument or property shall not be taken till the time for filing an appeal against the said order is over and where an appeal is filed, till further orders of the Appellate Court.
Rule 46-H. Discharge of garnishee's liability.-Any payment or delivery made by a garnishee in compliance with a garnishee notice or order made against him under rule 46-B, 46-C or 46-F of this Order or any money or property realised in execution of an order under these Rules shall be a valid discharge of the garnishee's liability to the judgment-debtor and to any other person or persons ordered to appear under rule 46-E or 46-F of this order for the amount paid or levied or property delivered or property realised in execution, although the decree in execution of which the application under rule 46-A was made, or the order passed in the proceedings on such application may be set aside or reversed.
Rule 46-I. Garnishee proceeding against a firm.-Where a debt due by a firm to the judgment-debtor has been attached it may be proceeded against under rules 46-A to 46-H of this Order in the same manner as in the case of an ordinary garnishee, and provisions of Order XXX of this Code shall, so far as applicable apply to such proceedings although one or more partners of such firm may be resident outside the jurisdiction of the Court:
Provided that any person having the control or management of the partnership business or any partner of the firm who is within the jurisdiction of the Court is served with garnishee notice. An appearance by any partner pursuant to such notice shall be sufficient appearance by the firm.
Rule 46-J. Costs.-The costs of any application made under rule 46-A of this order and of any proceedings arising therefrom or incidental thereto shall be in the discretion of the Court.
Rule 46-K. Appeal against order made under rules 46-B, 46-C, 46-F and 46-G.-Any order made under rule 46-B, 46-C, 46-F or 46-G of this Order shall be appealable as a decree."-(1-10-1983 and 20-4-1989).
[Calcutta] :
Add the following after rule 46:
"Rule 46-A. The Court may in case of a debt other than a debt, secured by a mortgage or a charge or by a negotiable instrument, which has been attached under rule 46 or 51 of this Order, 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 thereof as may be sufficient to satisfy the decree and costs of execution, or to appear and show cause why he should not do so:
Provided that if the debt in respect of which the application aforesaid is made is in respect of a sum of money beyond the pecuniary jurisdiction of the Court, the Court shall send the execution case to the Court of the District Judge to which the said Court is subordinate, and thereupon the Court of the District Judge or any other competent Court to which it may be transferred by the District Judge will deal with it in the same manner as if the case has been originally instituted in that Court.
Such application 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.
Rule 46-B. Where the garnishee does not forthwith pay into Court the amount due from him to the judgment-debtor or so much thereof as is sufficient to satisfy the r ecree and the costs of execution or does not appear and show cause in answer to the notice, the Court mayorder the garnishee to comply with the terms of such notice, and on such order execution may issue as though such order were a decree against him.
Rule 46-C. Where the garnishee disputes liability, the Court may order that any issue or question necessary for the determination of liability shall be tried as if it were an issue in a suit, and upon the determination of such issue shall make such order or orders upon the parties as may seem just.
Rule 46-D. Where it is suggested or appears to be probable that the debt belongs to some third person or that any third person has a lien or charge on, or other interest in, such debt, the Court may order such third person to appear and state the nature and particulars of his claim (if. any) to such debt and prove the same.
Rule 46-E. After hearing such third person and any person or persons who may subsequently be ordered to appear, or where such third or other person or persons do not appear when so ordered, the Court may make such order as is hereinbefore provided, or such other order or orders upon such terms, if any, with respect to the lien, charge or interest, if any, of such third or other persons as may seem fit and proper.
Rule 46-F. Payment made by the garnishee on a notice under rule 46-A or under any such order as aforesaid shall be valid discharge to him as against the judgment-debtor and any other person ordered to appear as aforesaid, for the amount paid or levied although such judgment may be set aside or reversed.
Rule 46-G. The costs of any application made under rule 46-A and of any proceeding arising therefrom or incidental thereto, shall be in the discretion of the Court.
Rule 46-H. An order made under rule 46-B or 46-C or 46-E shall be appealable as a decree." Rules 46-A to 46-H.
[Gauhati].-Same as those of Calcutta.
[Gujarat] :
Same as those of Bombay except that in rule 46-H the figures and letter "46-B" are omitted.-(17-8-1961).
[Karnataka] :
Same as those of Madras-(R.O.C. No. 2526/1959, dated 9-2-1967).
Rules 46-A to 46-I-[Kerala] :
After rule 46, the following rules shall be inserted, namely:
"Rule 46-A. Procedure when debt or any movable property not in possession ofjudgment-debtor.-The Court may, in the case of any debt due to the judgment-debtor (other than debt secured by a mortgage or a charge or by negotiable instrument), or any movable property in which he has an interest, but not in his possession, which has been attached under rule 46 of this Order, upon the application of the attaching creditor, issue notice to any person liable to pay such debt or deliver an account for such movable property (such person to be hereinafter called the'garnishee') calling upon him either to pay or deliver into Court the debt due from or the property deliverable by him to such judgment-debtor, or so much thereof as may be sufficient to satisfy the decree and costs of execution, or to appear and show cause why he should not do so. Such application shall be supported by an affidavit verifying the fact alleging and stating that in the belief of the deponent the garnishee is indebted to the judgment-debtor:
Provided that if the debt or property in respect of which the application aforesaid is made is of value beyond the pecuniary jurisdiction of the Court, the execution case shall be sent to the District Court to which the said Court is subordinate and thereupon the District Court shall deal with it in the same manner as if the case had been originally instituted in that Court.
Rule 46-B. Procedure when garnishee does not forthwith pay the amount.-Where the garnishee does not forthwith or within such time as the Court may allow, pay or deliver into Court the amount due from him or the property deliverable by him to the judgment-debtor or so much thereof as is sufficient to satisfy the decree and the costs of execution, or does not appear and show cause in answer to the notice, the Court may order the garnishee to comply with the terms of such notice, and on such order being made, execution may issue as though such order were a decree against him.
Rule 46-C. Procedure where garnishee disputes his liability.-Where the garnishee disputes his liability the Court may order that any issue or question necessary for the determination of the liability shall be tried as if it were an issue in a suit and upon determination of such issue shall make such order as may seem just:
Provided that where the garnishee admits his liability but disputes its extent and the decree-holder does not seek to recover from the garnishee any sum in excess of what he admits is due from him the Court shall not be bound to decide the dispute and may direct the garnishee to pay such sum or so much thereof as is sufficient to satisfy the decree and the costs of the execution proceedings.
Rule 46-D. Procedure when debt or property belongs to a third person.-Where in any proceeding under these rules it is alleged or appears to the Court to be probable that the debt or property attached or sought to be attached belongs to some third person or that any third person has a lien or charge upon or an interest in it, the Court, may order such third person to appear and state the nature and particulars of his claim, if any, to such debt or property and prove the same.
Rule 46-E. Order to be made on hearing such persons.-After hearing such third person and any other person who may subsequently be ordered to appear, or in the case of such third or other person not appearing when ordered, the Court may pass such order as is hereinbefore provided or make such other order as it thinks fit, upon such terms, in all cases with respect to the lien, charge or interest, if any, of such third or other persons as may seem fit and proper.
Rule 46-F. Payment or delivery under order to be a valid discharge.-Payment or delivery made by the garnishee on a notice under rule 46-A or under any such order as aforesaid shall be a valid discharge to him as against the judgment-debtor, and any other person ordered to appear as aforesaid, for the amount paid, delivered or realised although such order or the judgment may be set aside or reversed.
Rule 46-G. Procedure re: debt owing from a firm.-Debts owing from a firm carrying on business within the jurisdiction of the Court may be proceeded against under rules 46-A to 46-E of this Order, although one or more members of such firm may be resident outside the jurisdiction :
Provided that if any person having the control or management of the partnership business or any member of the firm within the jurisdiction is served with the garnishee notice, an appearance by any member pursuant to such notice shall be sufficient appearance by the firm.
Rule 46-H. Costs to be in the discretion of the Court.-The cost of any application made under rule 46-A and of any proceeding arising therefrom or incidental thereto or any order made thereon shall be in the discretion of the Court.
Rule 46-I. Orders appealable.-An order made under rule 46-B, 46-C or 46-E, shall have the same force as a decree and shall be appealable as such."-(9-6-1959).
[Madras] :
Add the following rules:
"Rule 46-A. The Court may in the case of any debt due to the judgment-debtor (other than a debt secured by a mortgage or a charge or a debt recoverable only in a Revenue Court, or a debt on a negotiable instrument the amount of which exceeds the pecuniary jurisdiction of the Court) which has been attached under Order 21, rule 46, and in the case of a negotiable instrument which has been attached under Order 21, rule 51, upon the application of the decree-holder, issue notice to the person liable to pay such debt (hereinafter called the garnishee) calling upon him to appear before the Court and show cause why he should not pay the debt due from him to such judgment-debtor or so much thereof as may be sufficient to satisfy the decree and costs of execution.
Rule 46-B. If the garnishee does not appear or show cause in answer to the notice issued under rule 46-A, or if he does not dispute his liability or its extent, the Court may direct the garnishee within such time as it may allow to pay into Court the debt or the amount dueunder the negotiable instrument as the case may be or so much thereof as may be sufficient to satisfy the decree and the costs of the execution proceedings.
Rule 46-C. If the garnishee disputes his liability or, its extent, the Court may decide the dispute and thereafter direct the garnishee within such time as it may allow to pay into Court such sum as it has found to be due from him or so much thereof as may be sufficient to satisfy the decree and the costs of the execution proceedings:Provided that where the garnishee admits his liability but disputes its extent and the decree-holder does not seek to recover from the garnishee any sum in excess of what he admits is due from him, the Court shall not be bound to decide the dispute and may direct the garnishee to pay such sum or so much thereof as is sufficient to satisfy the decree and the costs of the execution proceedings.
Rule 46-D. If the garnishee alleges that the debt belongs to some third person or that a third person has a lien, or charge or other interest, upon or in it, the Court may order such third person to be served with notice to appear and state the nature and particulars of his claim.
Rule 46-E. After hearing the garnishee or such third person and any other person who may subsequently be ordered to appear, or in the case of such third or other person not appearing as ordered, the Court may pass such order as is provided for in the foregoing rules or such other order as it shall think fit, upon such terms in all cases with respect to the lien, charge or interest, if any, of such third person or other person as shall seem just and reasonable.
Rule 46-F. Any payment made by the garnishee in pursuance of or in execution of an order under these rules shall be a valid discharge to him as against the judgment-debtor or any other person ordered to appear as aforesaid, for the amount paid, or realized although such order or judgment may be set aside, or reversed.
Rule 46-G. If at any stage of the proceedings under rules 46-A to 46-F the Court considers that the matter is too complicated to be dealt with under the above said provisions, it may drop the proceedings leaving the other rights and remedies of the parties unaffected.
Rule 46-H. The costs of any application made under the foregoing rules and of any proceedings arising from or incidental to such application, shall be in the discretion of the Court.
Rule 46-I. An order passed by the Court determining the liability of a garnishee or directing payment by him under rules 46-B, 46-C and 46-E shall be executed as if it were a decree and shall be appealable as such."-(10-8-1955).
[Orissa] :
Same as those of Patna.
[Patna] :
See rules 63-A to 63-H added by the Patna High Court.
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1. Section 46A to 46 I inserted by Act 104 of 1976, section 72 (w.e.f 1-2-1977).
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