Garnishee directions cannot compel payment of unproven dues; the High Court set aside the Revenue's demand.

A garnishee-type direction cannot compel a person to pay the Revenue an amount not shown to be due and payable to the alleged debtor. The High Court found no material establishing that the petitioner owed the stated sum to the third party, and the settlement indicated only a much smaller contingent amount payable upon invoice issuance. The direction requiring payment of the entire amount was therefore unsustainable and was set aside, while the Revenue was left free to take lawful steps to protect its interests.

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Issues: Whether the order directing the petitioner to pay a specified sum to the Revenue in respect of dues allegedly payable to the third party was sustainable when the petitioner had not admitted any such liability and the amount was not shown to be due and payable.

Analysis: The impugned order proceeded on the assumption that the petitioner owed the third party the stated amount, but there was no material showing that such sum was actually due and payable. The Court treated the order as having the character of a garnishee direction and held that the Revenue could not compel payment of monies which were not established to be payable by the petitioner to the third party. The settlement between the petitioner and the third party showed that only a much smaller amount was payable, and even that was contingent upon issuance of an invoice.

Conclusion: The direction requiring payment of the entire stated amount was unsustainable and was set aside. The petition was allowed, while the Revenue was left free to take lawful steps to protect its interests.

Ratio Decidendi: A garnishee-type direction cannot compel a person to pay to the Revenue an amount that is not shown to be due and payable to the debtor.

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