Question

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 funds standing to the credit of the judgment debtor at the time the order is received by the bank. Reason (R): Future deposits do not create a debtor–creditor relationship. ✔ True — Until money is actually deposited, the bank does not owe any amount to the customer. Hence, no present debtor–creditor relationship exists regarding future deposits. Link between A and R: The reason correctly explains why garnishee orders cannot apply to future deposits—only existing, due balances can be attached.