Banking · Garnishee and Attachment Orders

Evaluate the following statements regarding Garnishee Orders and Attachment Orders. Statement 1: A Garnishee Order served on a bank attaches only the debt 'Due or Accruing Due,' which includes the balance in a savings account but excludes a fixed deposit that has not yet reached maturity. Statement 2: An Attachment Order issued by the Income Tax Authorities under Section 226 of the Income Tax Act 1961 has a wider scope than a judicial Garnishee Order as it can also attach money that may become due to the assessee in the future. Statement 3: If a bank receives a Garnishee Order for a customer who has a joint account with his spouse, the bank must immediately freeze the joint account even if the order is only in the name of the husband. Statement 4: The service of a Garnishee Order Nisi terminates the banker-customer relationship, and the bank no longer has any obligation to honor cheques presented after the service of the order. Statement 5: A bank can exercise its right of set-off for a debt that has not yet become due at the time a Garnishee Order is served, effectively prioritizing its future claims over the court's current attachment. Statement 6: If the bank accidentally pays a cheque after being served with a Garnishee Order, it cannot debit the customer's account for that amount and must bear the loss itself. Which of the following evaluations is correct?