Chapter 3 – Banker’s Special Relationship

  • A person competent to enter into a contract may authorise another person to open and operate an account on his behalf.
  • Mandatee – Authorised Person
Power Of Attorney (POA)
  • Document executed by one person (Donor or Principal) in favour of another person (Donee or Agent) to act on behalf of Donor.


  1. General or Universal
  2. Special or Limited
Garnishee Order
  • Order of court obtained by a judgement creditor attaching the fund belong to judgement debtor in the hand of his debtors, including bank

Bank- Dos & Don’ts under Garnishee Order

  • Payment of Cheques
    • After receive garnishee order, refuse cash payment and in case of clearing, the cheques must be returned
  • Right to set-off
    • Bank has a prior right to set-off
    • When lien is marked on fixed deposit receipts, it cannot be attached by a garnishee order
  • Unclear effects and Subsequent credit in a/c
    • Credits received to subsequent to garnishee order are not attachable because debts due or accruing at the time of receipt of order are only attachable
  • Joint Account
    • When a garnishee order is in a single name and customer account is joint:-
      • “either or survivor” – Not Attached
      • “former or survivor” – Attached
    • Trust Account
      • Garnishee order against trustee is not attached in trust account
    • Partnership Account
      • Personal account of partner can be attached for the firm’s debt, but the firm’s account can’t attached for individual debt of partners
    • Liquidator
      • In liquidator garnishee order attached
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