Garnishee recovery and pending appeal: no immediate refund, but bank account restraint cannot continue after appropriation.

Where recovery has been effected by garnishee order and a statutory appeal remains pending, immediate refund of the appropriated amount need not be directed because entitlement to refund cannot be finally determined until the appeal is decided; the recovered sum should abide by the appeal outcome. Once the garnishee order has been worked out by appropriation, continued restraint on the bank account is unwarranted, and the account should be allowed to operate. The writ was disposed of with directions for early disposal of the pending appeal, without ordering immediate refund, while protecting account operations.

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Issues: (i) whether refund of the amount appropriated pursuant to the garnishee order could be directed while the appeal against the assessment order remained pending; (ii) whether the petitioner's bank account could continue to be restricted after the garnishee order had been worked out by appropriation.

Issue (i): whether refund of the amount appropriated pursuant to the garnishee order could be directed while the appeal against the assessment order remained pending.

Analysis: The amount recovered from the bank account was linked to the pending appeal against the order confirming the tax demand and penalty. In view of the pendency of that appeal, the petitioner's entitlement to refund of the penalty amount could not be determined at that stage. The amount recovered was directed to remain subject to the outcome of the appeal.

Conclusion: Refund was not ordered at this stage, and the appropriated amount was held to abide by the result of the appeal.

Issue (ii): whether the petitioner's bank account could continue to be restricted after the garnishee order had been worked out by appropriation.

Analysis: Once the garnishee order had resulted in appropriation of the amount, the order had served its purpose. Continued restraint on operation of the relevant bank account was therefore unwarranted.

Conclusion: The respondent and the bank were directed not to prevent operation of the relevant bank account.

Final Conclusion: The writ petition was disposed of with directions for early disposal of the pending appeal, without ordering immediate refund, while safeguarding the petitioner's ability to operate the bank account.

Ratio Decidendi: Where the recovery made under a garnishee order is connected with a pending statutory appeal, immediate refund need not be ordered, and once the garnishee order has been worked out, the bank account should not remain restrained.

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