Order 38

Attachment of debts by garnishee

1. The Court may, on the ex parte application of any person who has obtained a judgment or order for the recovery or payment of money, either before or after any oral examination of the debtor liable under such judgment or order, and upon affidavit by himself or his Solicitor, stating that the judgment has been recovered, or the order made, and that it is still unsatisfied, and to what amount, and that any other person is indebted to such debtor and is within the jurisdiction, order that all debts owing or accruing from such third person (hereinafter called the garnishee) to such debtor shall be attached to answer the judgment or order; and by the same or any subsequent order it may be ordered that the garnishee shall appear before the Court to show cause why he should not pay to the person who has obtained such judgment or order the debt due from him to such debtor, or so much thereof as may be sufficient to satisfy the judgment or order.

In this rule "any other person" shall include a firm, any member of which is resident within the jurisdiction, and a garnishee order may be made against any firm in the name of the firm; and any appearance by any member then within the jurisdiction pursuant to any order made under this rule shall be a sufficient appearance by the firm.

2. Service of such order upon the garnishee, or notice thereof given to him in such manner as the Court shall direct, shall bind such debts in his hands.

3. If the garnishee does not forthwith pay into Court the amount due from him to the debtor liable under a judgment or order, or an amount equal to the judgment or order, and does not dispute the debt due or claimed to be due from him to such debtor, or if he does not appear, then the Judge may order execution to issue, and it may issue accordingly, without any previous notice, to levy the amount due from such garnishee, or so much thereof as may be sufficient to satisfy the judgment or order, together with the costs of the garnishee proceedings.

4. If the garnishee disputes his liability, the Judge, instead of making an order that execution shall issue, may order that any issue or question necessary for determining his liability be tried or determined in any manner in which any issue or questions in an action may be tried or determined.

5. Whenever in proceedings to obtain an attachment of debts it is suggested by the garnishee that the debt sought to be attached belongs to some third person, or that any third person has a lien or charge upon it, the Judge may order such third person to appear and state the nature and particulars of his claim upon such debt.

6. After hearing any third person under such order as in Rule 5 mentioned, and any other person whom by the same or any subsequent order the Court may order to appear, or in case of such third person not appearing when ordered, the Judge may order execution to issue to levy the amount due from such garnishee, or so much thereof as may be sufficient to satisfy the judgment or order, together with costs of the garnishee proceedings, and of any issue or question to be tried or determined according to the preceding Rules of this Order, and may bar the claim of such third person, or make such other order as the Judge shall think fit, upon such terms, in all cases, with respect to the lien or charge (if any) of such third person, and to costs, as he shall think just.

7. Payment made by or execution levied upon the garnishee under any such proceeding as aforesaid shall be a valid discharge to him as against the debtor liable under a judgment or order to the amount paid or levied, although such proceeding may be set aside or the judgment or order reversed.

8. The County Registrar shall keep a debt attachment book; and in such book entries shall be made of the attachment and proceedings thereon, with names, dates, and statements of the amount recovered, and otherwise; and copies of any entries made therein may be taken by any person upon application to the County Registrar.

9. The costs of any application for an attachment of debts, and of any proceedings arising from or incidental to such application, shall be in the discretion of the Judge, and as regards the costs of the judgment creditor shall, unless otherwise directed, be retained out of the money recovered by him under the garnishee order in priority to the amount of the judgment debt.

10. If the sum attached is shown to be due in respect of salary or wages and the Judge is satisfied that its attachment, in whole or in part, will not leave a sufficient amount to the judgment debtor to maintain himself and those dependent upon him, the order may be set aside, or may be varied so as to apply only to the balance of such wages or salary after deduction of an amount sufficient in the opinion of the Judge for the maintenance of the debtor and his dependants.

11. After a sum has been attached in the hands of a garnishee the debtor may, if he has good and sufficient cause for so doing, apply to the Court to discharge the garnishee order, and the Judge may vary or discharge the said order if he shall consider that such cause has been shown.