CPC Rule 48 Order 21

To Date: 07-02-2020
Sri. J. Srinivas Garu

Dy. General Manager
Recovery Department
Respected Sir,
Ref: Letter dated: 25-12-2019 from your good offices.

**********
Salary
Money that is received under Employer-Employee relationship is called as
Salary .
The salary consists of following parts.
Basic Salary: As the name suggests, this forms the very basis of salary. This is
the core of salary, and many other components may be calculated based on this
amount. It usually depends on one’s grade within the company’s salary
structure. It is a fixed part of one’s compensation structure. The basic salary
differs according to the type of the industry. For instance, employees in the
information technology industry get more take-home salary while employees in
the manufacturing companies get more fringe benefits. Within a company,
Basic Salary generally depends on his/her or his/her designation. Any increment
in the salary is expressed as percentage of Basic salary.
Allowance: It is the amount received by an individual paid by his/her employer

in addition to salary to meet some service requirements such as Dearness
Allowance(DA), House Rent Allowance (HRA), Leave Travel Assistance(LTA) ,
Lunch Allowance, Conveyance Allowance , Children’s Education Allowance,
City compensatory Allowance etc. Allowance can be fully taxable, partly or
non taxable.
Perquisite: Is any benefit or amenity granted or provided free of cost or at

concessional rate such as Rent free unfurnished house, Rent free furnished
house, Motor car facility, Reimbursement of Gas, Electricity & Water, Club
facility, Domestic Servant Facility, Interest Subsidy on Loan , Reimbursement
of medical bills, Reimbursement of Hospital bills, Reimbursement of telephone
bills, Benefits derived by employee stock option, and so on.
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How are perquisites taxed?
Since these are non-cash components, they cannot be taxed directly. So the
income tax laws attach a certain value to each of these components and charges
a tax on them. The calculation of this value varies from category to category.
Nevertheless, the thumb rule across all categories is that only those benefits that
you use for personal purpose will be considered as perquisites.
Deductions: Two type of deduction are made from salary
 Compulsory deduction such as Provident Fund, Income tax, Professional

Tax (where applicable).
 Optional deduction such as recovery for advance or loan if taken,
voluntary contribution to P.F etc
Allowance is defined as a fixed quantity of money or other substance given

regularly in addition to salary for meeting specific requirements of the
employees.
Some allowances are taxable, some are partially taxable and some are tax
free. There are various Kinds of Allowances that one can get under the Head
Salary. Some popular Allowances are
 House Rent Allowance or HRA : The allowance is for expenses related

to rented accommodation. Salaried individuals who live in a rented
house/apartment can claim House Rent Allowance or HRA to lower taxes.
This can be partially or completely exempt from taxes. Our article HRA
Exemption, Calculation, Tax and Income Tax Return explains how HRA
is calculated in salary in detail.
 Conveyance allowance is given to employees to meet travel expenses
from residence to work. The conveyance allowance for up to Rs.9,600 per
annum is exempt from tax.
Leave Travel Allowance: Salaried employees can avail exemption for a trip

within India under Leave Travel Allowance. The exemption is only for shortest
distance on a trip. This allowance can only be claimed for a trip taken with your
spouse, children and parents, but not with other.
2
Rule 48 Order XXI of Code of Civil Procedure 1908 deals with the
"Attachment of salary or allowances of servant of the Government or railway
company or local authority"
(1) Where the property to be attached is the salary or allowances of a [servant of

the Government] or of a servant if a railway company or local authority [or
of a servant corporation engaged in any trade or industry which is
established by a Central Government, Provincial or State Act, or a
Government company as defined in section 617 of the Companies Act, 1956
(1 of 1956) the Court, whether the judgment-debtor or the disbursing officer
is or is not within the local limits of the Court's jurisdiction, may order that
the amount shall, subject to the provisions of section 60, be withheld from
such salary or allowances either in one payment or by monthly installments
as the Court may direct; and, upon notice of the order to such officer as the
appropriate Government may by notification in the Official Gazette appoint
in this behalf,-
(a) where such salary or allowances are to be disbursed within the local
limits to which this Code for the time being extends, the officer or other
person whose duty it is to disburse the same shall withhold and remit to the
Court the amount due under the order, or the monthly installments, as the
case may be;
(b) where such salary or allowances are to the disbursed beyond the said
limits, the officer or other person within those limits whose duty it is to
instruct the disbursing authority regarding the amount of the salary or
allowances to be disbursed shall remit to the Court the amount due under the
order, or the monthly installments, as the case may be, and shall direct the
disbursing authority to reduce the aggregate of the amounts from time to
3
time, to be disbursed by the aggregate of the amounts from time to time
remitted to the Court.
(2) Where the attachable proportions of such salary or allowances is already

being withheld and remitted to a Court in pursuance of a previous and
unsatisfied order of attachment, the officer appointed by the appropriate
Government in this behalf shall forthwith return the subsequent order to the
Court issuing it with a full statement of all the particulars of the existing
attachment.
(2) Every order made under this rule, unless it is returned in accordance with the
provisions of sub-rule (2) shall, without further notice or other process, bind
the appropriate Government or the railway company or local authority or
corporation or Government company, as the case may be, while the
judgment-debtor is within the local limits to which this Code for the time
being extends and while he is beyond those limits, if he is in receipt of any
salary or allowances payable out of the Consolidated Fund of India or the
Consolidated Fund of the State or the funds of a railway company or local
authority or corporation or Government company in India; and the
appropriate Government or the railway company or local authority or
corporation a Government company, as the case may be, shall be liable for
any sum paid in contravention of this ruler.
Explanation-In this rule, "appropriate Government" means-
(i) As respects any person in the service of the Central Government, or any
servant of a railway administration or of a cantonment authority or of the
port authority of a major port, or any servant of a corporation engaged in
any trade or industry which is established by a Central Act, or any servant
of a Government company in which any part of the share capital is held
4
by the Central Government or by more than one State Governments or
partly by the Central Government and partly by one or more State
Government and the Central Government;
(ii) as respects any other servant of the Government, or a servant of any
other local or other authority, or any servant of a corporation engaged in
any trade or industry which is established by a Provincial or State Act, or
a servant of any other Government company, the State Government.
Rule 48A Order XXI of Code of Civil Procedure 1908 "Attachment of

salary or allowances of private employees"
(1) Where the property to be attached is the salary or allowances of an employee

other than an employee to whom rule 48 applies, the Court, where the
disbursing officer of the employee is within the local limits of the Court's
jurisdiction, may order that the amount shall, subject to the provisions of
section 60, be withheld from such salary or allowances either in one payment
or by monthly installments as the Court may direct; and upon notice of the
order to such disbursing officer, such disbursing officer shall remit to the
Court the amount due under the order, or the monthly installments, as the
case may be.
(2) Where the attachable portion of such salary or allowances is already being
withheld or remitted to the Court in pursuance of a previous and unsatisfied
order of attachment, the disbursing officer shall forthwith return the
subsequent order to the Court issuing it with of all the particulars of the
existing attachment.
(3) Every order mode under this rule, unless it is returned in accordance with the
provisions of sub-rule (2), shall, without further notice or other process, bind
the employer while the judgment-debtors is within the local limits to which
this Code for the time being extents and while he is beyond those limits, if he
is in receipt of salary or allowances payable out of the funds of an employer
5
in any part of India; and the employer shall be liable for any sum paid in
contravention of this rule.
Choice of Decree Holder in a joint decree it is the opinion of the Court that the
Decree holder has a right to proceed against any of the Judgment debtors
including guarantor in the first instance in view of Sec.128 of Contract Act and
that liability of surety is coextensive with that of principal debtor unless it is
otherwise provided by contract. In case the decree is a joint decree it does not
place any on the right of the Decree holder to go on against any of the judgment
debtors of his choice for recovery of amount due [MG Brothers Finance Ltd –
Vs – J.Badrinath 2007(1) ALD 451] Attachment of Salary is only once for a
decree In Shaik Noorjahan – Vs – M. Rajeswari 2010(4) ALT 787 , it was
held that when any part of attachment portion of salary of Judgment Debtor was
under attachment in execution of decree for a period of (24) months it is
exempted from further attachment in execution of same decree even if there is a
gap of (12) months after completion of (24) months of attachment, in view of
Proviso to Clause (i) of Sec.60(1) of CPC.
Exemption from Attachment The proviso to Section 60 CPC gives the items
which are exempted from Attachment. The following are the exemptions. In
case of employees – Arrears of Salary .
In [M.Prabhudas – Vs – Usirikayala Venkata Ramana 2011(4) ALT 399],

it was held that it hardly makes any difference in the context of extending the
benefit under Section 60(1)(i) whether it is salary from month to month or it is
the amount accumulated as arrears of salary, the prohibition contained in the
proviso to that section would operate without any modification. -Gratuity, etc.,
exempt till they reach the J.Dr.
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In [Gudapati Hanumaiah – Vs – Y. Lakshminarasamma2009(3) ALD 330],
the Hon'ble High Court of AP was pleased to held that the exemption from
attachment of death benefits payable to deceased employee in the form of
gratuity, provident fund, insurance and other compulsory deposits are exempted
from attachment until they are actually received by the legal representatives of
the deceased employee.
In [Bandi China Ramalinga Reddy – vs – Nalluri Srinivasulu 2006(2) ALD

734], it was held that so long as pension, gratuity etc., not received by
beneficiary only they are exempted from attachment in view of Sec.60(1)(g) of
CPC. When once they reach hands of employee, the exemption would cease to
operate.
HRA & DA – not exempted:- The Division Bench of our Hon'ble High Court
held in K.Venkateshwarlu – Vs – D. Ranga Reddy 7 2002 Supp. ALD 686
DB, that House Rent Allowance and Dearness Allowance which are not
exempted by the State of Andhra Pradesh, would not form part of “salary” and
therefore liable for attachment subject to the restrictions contained in clause (i)
of Section 60 CPC.
Insurance amount – exempted In Pulugu Karunakar Reddy – Vs – Shreya

Financiers and Hire Purchase 2007(2) ALT 212, it was held that amounts
payable under insurance policy on the life of the decreased are exempt from
attachment under Sec.60(1)(kb) of CPC for any amounts due by insured.
In Bomminayana Nirmala – Vs – Rachapathu Krishna Murthy2010(4)

ALT 260 , it was held that, if a suit is filed against the successors of policy
holder, the policy amount is exempted. The fact that attachment before
judgment became final does not change the situation or the order of the Court
7
attaching LIC amount operates as Res Judicata. Encashment of surrender leave
– not exempted
In Balasa Rama Rao – Vs – General Manager, District Cooperative

Central Bank Ltd., Srikakulam 1995(3) ALD 1045, it was held that – so far
as encashment of leave is concerned, since no specific exemption is provided
under the proviso to Sec.60 CPC, the same can be a subject matter of
attachment. Exemption can be claimed at the time of sale also.
In my view, after due verification the above Judgments and provisions of Civil
Procedure Code, 1908, the salary attachment to be given on the gross salary
after deducting statutory deductions only.
The opinion rendered accordingly.
K Gangadhara Rami Reddy

Sr. Manger-1- Administration – Legal

CPC Rule 48 Order 21

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CPC Rule 48 Order 21

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To Date: 07-02-2020

Sri. J. Srinivas Garu

Ref: Letter dated: 25-12-2019 from your good offices.

The salary consists of following parts.

Allowance: It is the amount received by an individual paid by his/her employer

Perquisite: Is any benefit or amenity granted or provided free of cost or at

Deductions: Two type of deduction are made from salary

 Compulsory deduction such as Provident Fund, Income tax, Professional

Allowance is defined as a fixed quantity of money or other substance given

 House Rent Allowance or HRA : The allowance is for expenses related

Leave Travel Allowance: Salaried employees can avail exemption for a trip

(1) Where the property to be attached is the salary or allowances of a [servant of

(2) Where the attachable proportions of such salary or allowances is already

Explanation-In this rule, "appropriate Government" means-

Rule 48A Order XXI of Code of Civil Procedure 1908 "Attachment of

(1) Where the property to be attached is the salary or allowances of an employee

In [M.Prabhudas – Vs – Usirikayala Venkata Ramana 2011(4) ALT 399],

In [Bandi China Ramalinga Reddy – vs – Nalluri Srinivasulu 2006(2) ALD

Insurance amount – exempted In Pulugu Karunakar Reddy – Vs – Shreya

In Bomminayana Nirmala – Vs – Rachapathu Krishna Murthy2010(4)

In Balasa Rama Rao – Vs – General Manager, District Cooperative

The opinion rendered accordingly.

K Gangadhara Rami Reddy

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