Question

On an account having a balance of Rs 12,000, one Garnishee Order for Rs 15,000 is received at 11 am and another for Rs 6,000 at 12:30 pm. The bank will

• A. Attach the balance on the order received first
• B. Attach the balance of Execute the order received second
• C. The bank will pay proportionately against two orders
• D. None of the above

Answer 1

Answer:

A. Attach the balance on the order received first

When multiple garnishee orders exceed the account balance, the bank distributes available funds proportionately to satisfy both claims as far as possible.