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1. (2) Recovery of Arrears

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 (2) Recovery of Arrears
Halsbury's Laws of Malaysia - Distress (Volume 10(2))

Halsbury's Laws of Malaysia - Distress > 280 – Distress > (5) Recovery of Amounts Due under
the Street, Drainage and Building Act 1974
(2) Recovery of Arrears

[280.172] Proceedings in default of payment

If any sum recoverable1 from the owners of premises2 remains unpaid by the person or persons liable at the
expiration of the period for payment, a notice must be served3 upon the person or any one of the persons, if more
than one, liable to pay the same, calling on him to pay the same together with a fee of such amount as may be
prescribed for the cost of the notice, within fifteen days of the service of such notice4. If the sum or any part thereof
remains unpaid at the expiration of fifteen days or such other extended period as the local authority5 may allow, it is
deemed to be in arrears6. All costs of any proceedings for the recovery of arrears may be recovered as if they
formed part of such arrears7.

The charge attaches and the powers and remedies conferred become exercisable from the date of completion of
the work, and may be exercised against the premises or against any movable property or crops for the time being
found thereon, notwithstanding any change or changes in the ownership or occupation of the premises subsequent
to the said date8.
1

As to sums recoverable from the owners of premises see [280.171].

2 As to the meaning of ‘premises’ see [280.066] note 3.

3 Ifno person liable to pay the same can be found, such notice must be deemed to have been duly served by the posting thereof
at the office of the local authority and by fixing a copy thereof on some conspicuous part of the premises in respect of which
such expenses or costs have been incurred: Street, Drainage and Building Act 1974 (Act 133) s 104(5).

4 Street, Drainage and Building Act 1974 s 104(4).

5 For the meaning of ‘local authority’ see [280.066] note 6.

6 Street, Drainage and Building Act 1974 s 104(6).

7 Street, Drainage and Building Act 1974 s 110.

8 Street, Drainage and Building Act 1974 s 104(7).

[280.173] Recovery of expenses and costs by instalments

When any local authority1 has incurred expenses and costs in or about the execution of any work, which are
payable by or recoverable from the owner2 or owners of premises3, the local authority may either recover such
expenses and costs or, if it thinks fit, take an engagement or engagements from such owner or owners for the
payment of such instalments as will be sufficient to defray the whole amount of such expenses and costs with
interest thereon at a rate not exceeding 6 per centum per annum, within a period not exceeding ten years4. Upon
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(2) Recovery of Arrears

default in payment of any instalment or interest upon the date appointed for payment thereof by any such
engagement, the whole of the balance then outstanding of such amount, together with any interest in arrears, will
immediately become due and payable and, notwithstanding any change in the ownership or occupation of the
premises since the date of the engagement, may be recovered by the same means and in like manner as for the
recovery of arrears in respect of expenses and costs payable by owners5.
1

For the meaning of ‘local authority’ see [280.066] note 6.

2 For the meaning of ‘owner’ see [280.066] note 7.

3 As to the meaning of ‘premises’ see [280.066] note 3.

4 Street, Drainage and Building Act 1974 (Act 133) s 105(1).

5 Street, Drainage and Building Act 1974 s 105(2). As to the manner of recovering arrears see [280.172] note 6.

[280.174] Proceedings for recovery of arrears

In addition to other statutory remedies1, for the recovery of arrears, a local authority2 may exercise, either
successively or concurrently, either or both of the following powers:
(1) issue a warrant of attachment and seize by virtue thereof any movable property and crops of any person
liable to pay the arrears and may also seize any movable property or any crops to whomsoever belonging
which are found on the premises3 in respect of which the arrears are due and may, after service of the
prescribed notice, sell the same by public auction in the prescribed manner4;
(2) by notice of sale to be served5 or published in the prescribed manner, declare its intention of selling, at the
expiration of three months from the date of such notice of sale, the premises in respect of which the arrears
are due and, if, at the expiration of such period, such arrears have not been paid or satisfied, sell by public
auction, in lots or otherwise, the whole of such premises or such portion thereof or such interest therein as
it deems sufficient for recovery of such arrears and costs6.

It is, however provided that the local authority must not exercise the power in head (2) above to sell the premises in
respect of which the arrears are due, or any portion thereof or interest therein, where there is or are upon the
premises and liable to be seized and sold under head (1) above movable property or crops belonging to the owner
of a value estimated by the local authority to be sufficient to realise the sum required to satisfy the arrears and
costs7.
1

See [280.172] and [280.173].

2 For the meaning of ‘local authority’ see [280.066] note 6.

3 As to the meaning of ‘premises’ see [280.066] note 3.

4 Street,
Drainage and Building Act 1974 (Act 133) s 106(1)(a). In England, it has been held that a debtor cannot halt the distraint
process for the recovery of non-domestic and drainage rates by tendering payment while seizure of goods is in progress: Wilson
v South Kesteven DC [2000] 4 All ER 577, CA (Eng) . As to the power to stop the sale of goods seized see [280.179].

5 As to the mode of service of the notice see the Street, Drainage and Building Act 1974 s 120. A notice required or authorised
by this Act to be served on the owner or occupier of the premises is deemed to be properly addressed if addressed by the
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(2) Recovery of Arrears

description ‘owner’ or ‘occupier’ of such premises without further name or description: s 120(2).

6 Street, Drainage and Building Act 1974 s 106(1)(b).

7 Street, Drainage and Building Act 1974 s 106(1) proviso.

[280.175] Payment to constitute rent

Any tenant or subtenant or occupier1, who, in order to avoid the seizure or sale of his property for non-payment of
arrears payable by the owner2 of the premises3 to the local authority4, pays such arrears and costs may thereafter,
in the absence of any written agreement to the contrary, deduct the amount so paid by him from the rent due or to
become due by him to his immediate landlord on account of the premises or such part thereof as is held or
occupied by him, and may retain possession until such amount has been fully reimbursed to him whether by
deduction from the rent or otherwise5. Any tenant or subtenant who has reimbursed, whether by allowing a
deduction from his rent or otherwise, any subtenant or occupier holding or occupying under him the amount so paid
by such subtenant or occupier has a similar right to deduct the amount from the rent due or to become due to his
immediate landlord and to retain possession until similarly reimbursed6.

The receipt of any duly authorised public officer for any amount so paid by any such tenant, subtenant or occupier
is deemed an acquittance in full for the like amount of rent7.
1

For the meaning of ‘occupier’ see [280.066] note 5.

2 For the meaning of ‘owner’ see [280.066] note 7.

3 As to the meaning of ‘premises’ see [280.066] note 3.

4 For the meaning of ‘local authority’ see [280.066] note 6.

5 Street, Drainage and Building Act 1974 (Act 133) s 106(2). See generally [280.066].

6 See note 5 above.

7 Street, Drainage and Building Act 1974 s 106(3).

End of Document