Question

Assertion–Reason Type Assertion (A): Garnishee Order applies only to existing balances.

Reason (R): Future deposits do not create a debtor-creditor relationship.

• A. Both A and R true, R explains A
• B. Both A and R true, R does not explain A
• C. A true, R false
• D. A false, R true

Answer 1

Answer:

A. Both A and R true, R explains A

Assertion (A): Garnishee Order applies only to existing balances. ✔ True — A garnishee order attaches only the amount standing to the credit of the judgment debtor at the time the order is served on the bank. Reason (R): Future deposits do not create a debtor–creditor relationship. ✔ True — At the time of receipt of the order, future deposits are uncertain and not yet due or payable by the bank to the customer, so no present debtor–creditor relationship exists for those amounts.