De Silva v Badden (C.C. 277-1931.)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a creditor may attach moneys held by a third party for the defendant, and that the third party stands in the shoes of the defendant. The position is the same as if the moneys were in the defendant's own possession. An agreement between the defendant and another creditor to hold funds pending litigation does not prevent attachment by a prior attaching creditor.
Outcome
Application granted; third party garnishee ordered to pay decretal amount and costs into court
Facts
On 11 September 1931, S. D'Souza commenced action against F. T. J. Badden in the Resident Magistrate's Court and obtained a writ of attachment before judgment on the same day. The attachment was served on Mr. Hogan, who held certain moneys belonging to Badden. On 14 September 1931, following no exeat regno proceedings, Badden signed an authority directing Hogan to use funds in his possession to pay off in full the claim in D'Souza v Badden. On 29 September 1931, Mr. Kaplan obtained a prohibitory order in Supreme Court Civil Case No. 277 of 1931, also served on Hogan. D'Souza then applied for an order directing Hogan to pay the balance of the decretal amount and costs due under the Resident Magistrate's decree.
Issues
- Whether a creditor may attach moneys held by a third party where those moneys are held to pay specific claims against the defendant.
- Whether the position of a third party holding moneys for a defendant is the same as if the moneys were in the hands of the defendant himself.
Orders
- Mr. Hogan to pay into Court, to the credit of the plaintiff in R.M. Civil Case No. 3793 of 1931, the balance of the decretal amount together with costs due to the plaintiff.
- Notice of application for payment out to be given to the plaintiff in Supreme Court Civil Case No. 277 of 1931.
- No order as to costs.
Rules and key headnotes
Full judgment
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