Lex situs
| Literal meaning | The law of the place where a thing is situated |
|---|---|
| Pronunciation | lex SIT-us |
The law of the place where a debt or property is situated. In State Bank of India v. Ghamandi Ram, the Court said that questions of attachment or garnishment (involuntary assignment) of a debt are governed by the lex situs of the debt. The judgment does not define the term itself.
A bank in Bhawalpur owed a surplus to a firm. The debt was situated in Pakistan, where the bank had garnishable assets. So the Pakistan Ordinance decided who was entitled, and the debt vested in the Custodian there.
Keep two questions apart. Assignability is governed by the proper law of the debt. Attachment or garnishment is governed by the lex situs of the debt.
If an involuntary assignment follows a voluntary one, the lex situs decides whether the voluntary assignee's rights are postponed or defeated.
Lex situs is said as “lex SIT-us”. Its literal meaning is “The law of the place where a thing is situated”. It is filed here as a general legal term.
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