Banking · Garnishee Order
A Civil Court issues a Garnishee Order (GO) attaching the debt of Mr. Punit (Judgment Debtor) due from Apex Bank. Punit has the following accounts at the time the GO is served: Testbook + 31. Savings Account A: Balance of Rs. 10,00,000/- held in the sole name of Mr. Punit. 2. Savings Account B: Balance of Rs. 5,00,000/- held jointly as 'Punit OR Mrs. Punit'. 3. Loan Account L: A Personal Loan of Rs. 8,00,000/- in Punit's sole name, with the last installment being 15 days overdue (not yet NPA). What is the maximum amount the bank is legally obliged to freeze immediately, and what can the bank claim as set-off before paying the court?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Freezing Amount: Rs. 5,00,000/-; Bank Claim: Rs. 8,00,000/-.
- 2Freezing Amount: Rs. 10,00,000/-; Bank Claim: Nil, as the debt in Loan Account L has not been recalled or fallen fully due, overriding the immediate right of set-off.✓
- 3Freezing Amount: Rs. 10,00,000/-; Bank Claim: Rs. 8,00,000/- under Banker's Lien.
- 4Freezing Amount: Rs. 15,00,000/-; Bank Claim: Nil, as the loan is not yet NPA.
Correct answer
Freezing Amount: Rs. 10,00,000/-; Bank Claim: Nil, as the debt in Loan Account L has not been recalled or fallen fully due, overriding the immediate right of set-off.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Garnishee Order MCQs →Want more practice questions on Garnishee Order?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Garnishee Order