46-I. Application to negotiable instruments.- The provisions of rules 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.
HIGH COURT AMENDMENTS
BOMBAY.- In Order XXI, of the Civil Procedure Code, 1908 for the existing Rules 46-A to 46-I substitute the following Rules:
“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 for 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 or order 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 clays 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 has 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.
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 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.
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 pass such order upon the notice as it may think fit:
Provided that if the amount of the debt or the amount payable under 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.
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 Rules 46, 51 or 52 of this Order shall stand raised and the prohibitory order, if any, shall stand discharged.
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.
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 Rules 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 itmay deem fit and proper including an order that any question or issue necessary for determining the validity of the claim of third or other person be tried as though it were an issue in a suit.
46-G. Exectution of order under Rules 46-B, 46-C and 46-F.- (a) An order made by the Court under Rules 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.
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-B 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.
46-I. Garnishee proceeding against a firm.- Where a debt due by a firm to the judgment-debtor has been attached it may he 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.
46-J. Costs.- The costs of any application made under Rule 46-A of this Order and of any proceedings arising there from or incidental thereto shall be in the discretion of the Court.
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).
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