HC Expounds: Fixed Deposits not exempted from attachment in execution of Decree of a Civil Court under Sec- 60 CPC, Read Judgment

The Orissa High Court dismissed a writ petition seeking repatriation of the amount along with compensation which was issued as a garnishee order to his banker under Section 45 G of the Employees’ State Insurance Act, 1948 and observed that Section 45 G(iv) obviated the necessity of the bank from obtaining instructions to encash prematurely the fixed deposits, for payment in compliance of the garnishee order.

Brief Facts:

The petitioner filed a writ petition for repatriation of the amount along with compensation which was issued as a garnishee order to his banker under Section 45 G of the Employees’ State Insurance Act, 1948 and the bank holding three fixed deposits of the petitioner caused premature encashment of the same and paid the aggregate to the corporation.

Contentions of the Applicant:

The learned counsel appearing on behalf of the petitioner argued that there was no reference to the petitioner, being the depositor in the garnishee order and premature encashment could not have been done without the authorization of the petitioner. It was further argued that Section 45 G does not mention fixed deposits to be prematurely encashed and paid out to the recovery officer and how the bank acted prevented the petitioner from challenging the garnish order.

Contentions of the Respondent:

The learned counsel appearing for the bank relied on Section 45 G(3)(iv),(ix) and (x) to argue that it acted in accordance with the law after being served with the garnishee order.

Observations of the Court:

The court observed that Section 45-G (2) does not mention fixed deposit and it is not exempted from attachment in execution of the decree of a civil court under Section 60 of the Code of Civil Procedure, 1908. The court however further stated that 45 G(3)(iv) provides that in complying with a garnishee order, it shall not be necessary for, any deposit receipt to be produced to the person served for any entry, endorsement or like being made before payment is made and this mandate obviated the necessity of the bank from obtaining instructions to encash prematurely the fixed deposits, for payment in compliance of the garnishee order.

The decision of the Court:

The court dismissed the writ petition as there was no reference to the petitioner in the compliance made by the bank.

Case Title: M/s. Satyasai Engineering College vs. BM, SBI, Mayurbhanj and ors.

Coram: Hon’ble Mr. Justice Arindam Sinha

Case No.: W.P.(C) No.28035 of 2022

Advocate for the Applicant: Mr. S. Mishra

Advocate for the Respondent: Mr. M. Tripathy

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