High Court Protects Business Operations Against Full Garnishee Freeze

A Government contractor challenged a GST demand of ₹75.40 lakh while the Department had issued garnishee notices restraining operation of his bank accounts. 

The contractor argued that the freeze prevented payment of employees, contractors and statutory liabilities. 

The High Court balanced both interests: the garnishee notices were set aside, receivables were directed to be credited into one designated HDFC account, and the ₹75.40 lakh demand was to be ring-fenced in that account.