Koo wins a legal case against Bob. The court rules in Koo’s favour and orders Bob to pay him a specific amount of money. But Bob refuses to pay. Later, Koo finds out that Bob has funds sitting in an account with a reputable bank. Naturally, Koo begins to wonder whether he can go to court and ask for that money to be taken from the account to satisfy the judgment.
The law has a way to help with this. It’s called garnishment, or more formally, garnishee proceedings. It lets someone who won a court case and is owed money get that money from a third party who holds or owes money to the person who lost the case. Most of the time, this third party is a bank or any deposit-taking institution.
How Garnishment is Done
Garnishee proceedings are governed by Order 47 of the High Court Civil Procedure Rules, 2004. (C.I. 47). They apply both in the High Court and in the Circuit Court. At its core, a garnishee proceeding involves three players:
- The first is the judgment creditor. The judgment creditor is the person who won the case and is entitled to be paid. In this case, that is Koo.
- The judgment debtor is the person who lost the case and refuses or fails to pay. That is Bob.
- The garnishee is the bank or other institution that holds money on behalf of the debtor (Bob) or owes money to the debtor (Bob).
The process starts when the person who won the case (the judgment creditor) applies to the court. This application is made without telling the person who owes the money (the debtor) or the third party (the garnishee) in advance. This type of request is called an ex parte application. The reason for this is to stop the debtor from secretly moving the money before the court can act.
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The application must come with an affidavit. An affidavit is a written statement where the person promises that what they’ve said is true, usually signed in front of a legal official. In this case, the affidavit must show that there is a valid court judgment, the money hasn’t been paid, and that the garnishee (usually a bank) is in Ghana and holds or owes money to the debtor.
If the court agrees, it gives a temporary order called a Garnishee Order Nisi. This doesn’t mean the money will be paid out right away, but it has a big effect: once the order is given to the bank, the debtor’s account is frozen. No money can be taken out or moved until the court makes a final decision.
What Happens Next
After the order is delivered, both the debtor and the garnishee must be informed. They are given at least seven days’ notice before a court hearing. At the hearing, the court takes a closer look at the case.
The garnishee (usually a bank) must come to court and say whether it is holding any money for the debtor. If it is, the court then decides if there’s any legal reason why the money should not be paid to the judgment creditor. For example, the bank might say the money is being used as security for a loan or that it has a legal right to keep it. These are serious points the court must consider.
If the court agrees the money can be paid out, it makes a final decision called a Garnishee Order Absolute. This order tells the garnishee to pay the money directly to the judgment creditor instead of the debtor. Once the money is paid, the bank is no longer responsible for that amount, and the debtor now owes less, or nothing, to the creditor.
What if the Garnishee Fails to Show Up?
There are consequences for not showing up. If the garnishee doesn’t attend the hearing and doesn’t have a good reason, the court can still go ahead and make the final order. If the garnishee thinks there’s been a mistake or that it doesn’t actually have the money, it must act fast and ask the court to cancel the order. Waiting too long can cause serious problems.
Other Claims and Late Money
Sometimes, another person may come forward and say the money in the account belongs to them, not the person who lost the case. The court is allowed to listen to such claims because it’s only fair to consider the rights of others. But there’s a problem. The Garnishee Order Nisi is not made public; it doesn’t have to be announced in newspapers or anywhere else. So, someone who truly owns the money might not know about the case until it’s already too late to speak up.
What if the Judgment Debtor’s Account Receives Money After the Temporary Order is Granted but Before the Hearing?
There is also a question about timing. When the bank tells the court how much money is in the account, should it give the balance on the day of the hearing or on the day it received the order? The better answer is the day it got the order. The account is frozen from the moment the order is given. Any money added after that is not included unless the court specifically says so.
Conclusion
In practical terms, garnishee proceedings help make court judgments meaningful. A person may win a case and still remain unpaid for months or even years. Garnishment gives the law teeth. It ensures that judgments are not just written on paper but are enforced in the real world.
So if you ever find yourself with a court order in your favour but no money in your hands, do not give up. The law allows you to take steps to enforce the judgment through garnishee proceedings. It is a powerful but quiet tool. And sometimes, it is the only thing standing between you and the justice you were promised.
Alhassan Aboagye on behalf of OSD and Partners. [email protected]
