Banking · Garnishee Order
Mr. Anand maintains a joint savings account with his wife, Mrs. Priya, with the operating instruction 'Either or Survivor.' The bank receives a Garnishee Order from a court in the name of 'Mr. Anand' for a debt of 50,000 rupees. The balance in the joint account is 80,000 rupees. Mr. Anand also has a separate individual account with a balance of 20,000 rupees. How should the bank apply the Garnishee Order across these accounts?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank should attach the entire 20,000 rupees from the individual account and 30,000 rupees from the joint account to satisfy the 50,000 rupee order.
- 2The bank should only attach the 20,000 rupees from the individual account and cannot attach any money from the joint account because the debt is in a single name.✓
- 3The bank must attach the entire 50,000 rupees from the joint account because 'Either or Survivor' implies that each holder has full rights over the entire balance.
- 4The bank should freeze both accounts completely until the court provides a clarification on which funds belong exclusively to Mr. Anand.
Correct answer
The bank should only attach the 20,000 rupees from the individual account and cannot attach any money from the joint account because the debt is in a single name.
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