Garnishee recovery cannot attach a sanctioned overdraft limit; only actual dealer funds held by the bank are recoverable.

For garnishee-style recovery under section 14 of the Karnataka Sales Tax Act, only money actually due to the dealer or held on the dealer's account can be attached. A sanctioned overdraft or credit facility is merely a contractual limit for advancing funds; it does not create money owed by the bank to the dealer, and where the account is in debit with no credit balance, there is nothing attachable for tax recovery. The bank is therefore not required to remit the sanctioned credit limit to the tax department.

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Issues: Whether, for the purposes of section 14 of the Karnataka Sales Tax Act, 1957, an overdraft or credit facility sanctioned by a bank can be treated as money belonging to the defaulting dealer and thereby made available for recovery of tax arrears.

Analysis: Section 14 fastens liability only on a person from whom money is due or may become due to the dealer, or who holds money for or on account of the dealer. An overdraft facility is a contractual arrangement by which the bank agrees to advance funds up to a sanctioned limit; it does not mean that the bank holds the dealer's money or owes an existing sum to the dealer merely because the facility has been sanctioned. Where the account remains in debit and there is no credit balance, there is no money of the dealer in the hands of the bank that can be attached for tax recovery.

Conclusion: An overdraft or credit facility cannot be treated as money due to the dealer for recovery under section 14, and the bank is not liable to remit such sanctioned credit limit to the tax department.

Ratio Decidendi: For garnishee-style recovery provisions, only money actually due to or held on account of the dealer is attachable, and a mere sanctioned overdraft limit does not constitute such money.

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