ATTACHMENT OF DEBIT BALANCE
RAJINDER KUMAR GARG
(Querist) 11 February 2009
This query is : Resolved
CAN A COURT CAN ORDER FOR ATTACHMENT OF DEBIT BALANCE OF A PARTY? SUPPOSE IF A PARTY IS AVAILING THE CASH CREDIT LIMIT FROM A BANK AND THE PARTY HAS NOT UTILISED ITS FULL LIMIT AND THE DECREE HOLDER HAD OBTAINED AN ORDER FROM A COURT FOR THE ATTACHMENT OF THAT ACCOUNT.
WHETHER THIS ORDER IS LEGALLY VALID.
sanjeev murthy desai
(Expert) 11 February 2009
Yes court can order for debit balance of the party. Yes it is valid
ARVIND JAIN
(Expert) 12 February 2009
CREDIT BALANCE CAN BE ATTACHED.DEBIT BALANCE WILL BE ONLY WHEN CR LIMIT IS USED BY THE PARTY. NO ONE ELSE CAN DO THIS.
R.S.Rajesh
(Expert) 12 February 2009
The cash credit facility sanctioned by the bank is only atype of laon facility/ financial assistance to the borrower to make use of the same for a specific purpose, which is repayable to the bank together with interest costs/expenses. That is to say, it is a loan allowed by the bank on certain specific terms and conditions. It is not a deposit account which is payable to the borrower. The garnishee order is applicable to the person who owes any debt to the borrower/ judgement debtor, but has no application to the loan facility granted by the borrower by the bank and this has to be apprasied to the court expressing the bank's inability to comply with the order.
A. A. JOSE
(Expert) 18 February 2009
I endorse view of Mr.Rajesh.
