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Monday, February 7, 2022

whether the money lies in the hands of third party of defendant can be attached before judgement under Or.38 rule 5 CPC - in J.Balakrishna vs. United Bank of India1. In Para 8 it is stated as under: “The money in the hands of third party also cannot be attached as a garnishee (debtor’s debtor) unless a decree is passed in the suit. Such money can only be attached in execution proceedings and not in pendency of the suit. Therefore, this Court holds that both the orders in the I.As., are totally illegal and uncalled for. This Court is of the considered view that the learned Judge has not followed the simple legal principles. Hence, both the orders passed in the IAs., are set aside”. 5. This contention is also difficult to accept in view of Order XXXVIII C.P.C. where certain interim measures to safeguard the interest of the plaintiff in a suit, before passing judgment are stated. Relevant for the present purpose is Order XXXVIII Rules 5 and 6 C.P.C. There is no prohibition as such under Order XXXVIII C.P.C, taking recourse to attachment of money lying with a third party who is otherwise known as a garnishee, in the process of securing interest of the plaintiff, before judgment. 6. For this purpose, the plaintiff is required to make out the reasons as stated in Order XXXVIII Rule 5 C.P.C. Further, Order 38, Rule 11-A of CPC specifically provides for application of provisions of execution of decree at this stage. Therefore, in the light of such provisions provided for, it is rather difficult to agree with the view in J.Balakrishna case (referred supra) of learned Judge of this Court. I respectfully differ with such view. There is absolutely no bar or prohibition for a party, who stands as the plaintiff to realise Order XXXVIII Rule 5 C.P.C for attaching money in the hands of garnishee.


AP HIGH COURT ; AMARAVATHI

THE HON’BLE SRI JUSTICE M.VENKATA RAMANA

CIVIL REVISION PETITION No.1469 of 2021

KARNATI MALYADRI
Versus
CHITIPROLU SRINIVASA RAO

ORDER:-

 Heard Sri Ramakoteswara Rao, learned counsel for the

petitioner.

2. The petitioner is the defendant. Aggrieved by the orders of

attachment of money lying with garnishee namely the Singareni

Collieries Company Ltd., Hyderabad said to be belonging to the

respondent, in the event of the petitioner failing to furnish

security for the suit amount.

3. Learned counsel for the petitioner raised several

objections. The first objection is failure of the respondent to

make garnishee a party to the suit. A garnishee is undoubtedly

a third party to the suit proceedings. When the suit is in respect

of claim in between the plaintiff and the defendant, there cannot

be any impleadment of third party as such. The accidental

position of the garnishee in a transaction relating to the parties

to the suit cannot give garnishee a status of being a party to the

suit.

4. Another objection raised by the learned counsel for the

petitioner is that in terms of Order XXXVIII Rule 5 of the Code of

Civil Procedure Code, 1908 (hereinafter referred as “C.P.C”), the

trial Court has no jurisdiction to attach the money lying with

the garnishee and unnecessarily the parties should go on with

the execution proceedings where in terms of Order XXI Rule 46

C.P.C, such course can be taken. In support of his contention,

learned counsel for the petitioner relied on the decision reported 

2

in J.Balakrishna vs. United Bank of India1. In Para 8 it is

stated as under:

“The money in the hands of third party also cannot be attached as

a garnishee (debtor’s debtor) unless a decree is passed in the suit.

Such money can only be attached in execution proceedings and

not in pendency of the suit. Therefore, this Court holds that both

the orders in the I.As., are totally illegal and uncalled for. This

Court is of the considered view that the learned Judge has not

followed the simple legal principles. Hence, both the orders passed

in the IAs., are set aside”.

5. This contention is also difficult to accept in view of Order

XXXVIII C.P.C. where certain interim measures to safeguard the

interest of the plaintiff in a suit, before passing judgment are

stated. Relevant for the present purpose is Order XXXVIII Rules

5 and 6 C.P.C. There is no prohibition as such under Order

XXXVIII C.P.C, taking recourse to attachment of money lying

with a third party who is otherwise known as a garnishee, in the

process of securing interest of the plaintiff, before judgment.

6. For this purpose, the plaintiff is required to make out the

reasons as stated in Order XXXVIII Rule 5 C.P.C. Further, Order

38, Rule 11-A of CPC specifically provides for application of

provisions of execution of decree at this stage. Therefore, in the

light of such provisions provided for, it is rather difficult to agree

with the view in J.Balakrishna case (referred supra) of learned

Judge of this Court. I respectfully differ with such view. There is

absolutely no bar or prohibition for a party, who stands as the

plaintiff to realise Order XXXVIII Rule 5 C.P.C for attaching

money in the hands of garnishee. It is further to be noted that


1

 1999 (4) ALD 22 

3

Order XXXVIII C.P.C itself provides raising or removal of such

attachment provided the defendants make out certain cogent

different reasons. Therefore, viewed from such perspective it

cannot be stated as a universal rule that there cannot be

attachment before judgment, when there is property either in

the shape of cash or movables, in the hands of a garnishee.

7. It is not necessary for the plaintiff to wait for a decree and

to take recourse under Order XXI Rule 46 C.P.C in the course of

execution proceedings. If such course is adopted, it would be

sometimes, denying of rightful relief for which a party is entitled

and he cannot be made to bear uncertainty till disposal of the

suit. If such course is adopted in certain instances there is

possibility of making the plaintiff misuse of the same in

determination of the plaint denying an opportunity of getting

security for the claim, set forth against the defendant. Therefore,

the contention of learned counsel for the petitioner basing on

the above ruling cannot be treated as absolute proposition of

law.

8. Another objection raised by the learned counsel for the

petitioner is with reference to territorial jurisdiction of the trial

Court to entertain the suit on the ground that the defendant is a

resident of Guntur. This objection can be raised by the

petitioner before the trial Court.

9. One more circumstance to consider in this matter is that

the petitioner did not as such raise any objection in I.A.No.301

of 2021 in the suit before the trial Court on the same lines

which are sought to be raised now. Therefore, the very approach 

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of the petitioner apparently is improper. He can as such raise all

objections which are available to him in terms of law by

appearing in the trial Court by means of his counter.

10. In the above circumstances, finding that there is no

justification to entertain this Civil Revision Petition, in exercise

of extra ordinary jurisdiction under Article 227 of the

Constitution of India, the civil revision petition has to be

dismissed at the stage of admission.

11. In the result, the Civil Revision Petition is dismissed.

However petitioner is permitted to raise all such objections

which are open to him and permissible in law in opposing such

claim of the respondent before the trial Court and the trial Court

is directed to dispose of I.A.No.301 of 2021 in O.S.No.194 of

2021 within four (04) weeks from the date of receipt of a copy of

this order. Learned counsel is also permitted to place web copy

of this order for consideration of the trial Court which shall be

taken note of. No costs.

 All pending petitions, if any, shall stand closed.

 _________________________________

 JUSTICE M.VENKATA RAMANA


Date : 28.12.2021

KA 

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THE HON’BLE SRI JUSTICE M.VENKATA RAMANA

CIVIL REVISION PETITION No.1469 of 2021

Date : 28.12.2021

KA