Question

Fixed Deposit –

• A. Is fully attachable
• B. Is partially attachable
• C. Is not attachable
• D. Is attachable after maturity only

Answer 1

Answer:

C. Is not attachable

A Fixed Deposit pledged as collateral for a loan is charged in favour of the bank. The bank has a prior right of lien and set-off over the deposit to secure its dues. Since the deposit is not freely payable to the customer, there is no amount “due” to the judgment debtor at the time of the garnishee order. Therefore, a garnishee order cannot be applied to such a Fixed Deposit. Why other options are incorrect: ❌ Fully attachable – Bank’s charge has priority ❌ Partially attachable – Applies only when there is surplus margin, not in a fully pledged FD