Professional Documents
Culture Documents
• Introduction:
> Usually, the enforcement of a judgment/order is made after summary judgment or
judgment after trial.
• Limitation Period
(1) Under s.6(3) LA 1953, a judgment cannot be enforced after 12 years from the
date which judgment becomes enforceable i.e. it is enforceable:
(i) when the judgment/order has been entered (i.e. date of entry); or
(ii) when the pronouncement of the judgment/order has been made after
the trial.
(2) In Daud v Ibrahim [1961] 27 MLJ 43, the court refused to allow P to enforce an
order of magistrate to have D transfer a piece of land to P after 12 years from
the date of the order as it was statute-barred under s.6(3) LA 1953.
> Judgment interest: cannot be recovered after 6 years from the date the interest
became due.
> Execution after 6 years but before 12 years:
(1) If a writ of execution is issued after 6 years but before 12 years, then P must
apply for leave of court enforce it: 0.46 r.2(l)(a).
(2) In Tio Chee Hing v Chung Khiaw Bank [1981] 1 MLJ 227, the court said that where 6
years have elapsed, 0.46 r.2 requires leave of court to be obtained to issue a writ of
execution. The court has the discretion to grant leave if it is satisfied with the grounds
given by the applicant. In this case, the reason for the delay was that there were
negotiations for settlement by arrangment. Leave of court was granted.
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(3) In Affin Bank Bhd v Wan Abdul Rahman bin Wan Ibrahim [2003] 2 AMR 1, the Court
of Appeal held
it is trite that under 0.46 r.2 the court has discretion to grant leave. 0.46 r.3 states that an
application must be supported by an affidavit stating when the case falls within r.2(l)(a),
the reasons for the delay in enforcing the judgment or order. Thus, the applicant must give
sufficient reason which varies from case to case. For example, in Tio Chee Hing (supra)
the Federal Court agreed with the trial judge that negotiations for settlement by
arrangement was sufficient reason for the delay and hence leave would be granted.
> Generally, no execution can be made against the government: s.33(4) Government
Proceedings Act 1956.
> Also, garnishee proceedings do not apply to the government: s.35 GPA 1956.
> The reason for these rules is that the government usually pays and the payment is only
delayed.
Discovery in Aid of Execution
> Discovery in aid of execution means examination of the judgment debtor.
> Two methods that may be used for the examination of the judgment debtor are under:
(a) Order 48 ROC; or
(b) S.4 Debtors Act 1957.
(5) If there is any dispute, the judgment debtor may refer it to the court to determine
it: rl(3).
(6) The examination of a judgment debtor touching the debts due to him is intended to be
a cross-examination of the strictest character, and the debtor under such examination
is bound to answer all questions relevant to the subject-matter and cannot insist on the
examination being confined to the simple question 'whether any and what debts are
due to him': Republic of Costa Rica v Strousberg (1880-81) 16 Ch D 8, CA
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(7) If the judgment debtor is a corporation, the judgment creditor may apply ex parte by
summons for an order that an officer of that corporation attend before the registrar and
be orally examined
Under s.4 DA 1957:
(1) The judgment debtor on examination may be ordered to pay one lump sum or by
installments.
(2) Failure to comply may lead to committal proceedings and imprisonment.
1. A writ of seizure and sale is one of the writs of execution. The other writs of
execution are writ of possession and writ of delivery.
2. It is applicable for both movable and immovable property.
3. A writ of seizure and sale is in Form 84 for moveable property or Form 85 for
immoveable property. O.45 r.12.
Application for leave to issue a writ a seizure and sale (or other writs of execution)
may be made by ex parte notice of application in Form 88 supported by an affidavit:
r.3(l).
When the court grants leave, the judgment creditor must apply for the writ of
seizure and sale (or other writs of execution) to be issued within 1 year failing
which a fresh application for leave has to be mace r.2(3).
The writ of seizure and sale is issued by an officer of the registry who signs, dates
and seals it: r.4(l).
0.46 r.4(3) & (4) provide that before it is issued, a praecipe in Form 89 must be
signed by the applicant or his solicitors and filed with:
(a) the judgment/order on which the writ of seizure and sale is to be issued;
(b) the order granting leave to issue the writ of seizure and sale where leave is
required; and
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(c) where applicable, the written permission of the controller of foreign
exchange where the person enforcing the judgment/order is outside the
jurisdiction: r.4.
The writ of seizure and sale is valid for 12 months from the date of issue unless
extended by the court for a period of 12 months on each application for extension: r.6.
(1) The seizure of movable property is subject to s.3(l) Debtors Act 1957 which prohibits the
attachment or seizure and sale by way of execution on the following items:
(a) wearing apparel, cooking utensils, beds of judgment debtor, his wife and children,
and tools and implements of his trade to the value of RM200 in all;
(b) judgment debtor's tools of trade including livestock or agricultural products in order to
earn his livelihood;
(c) houses and other buildings in a farm;
(d) books of account;
(e) any pension, gratuity or allowance granted by the government or other public body;
and
(f) wages or salary of judgment debtor below RM200.
(2) The court can only authorise the execution of wages/salary above RM200 of a
federal/state officer after the consent has been obtained in writing by the Minister of
Finance or the Chief Minister of a state.
(3) After seizure has been made of the movable property, any dealings by the judgment
debtor with the property seized will be void: 0.47 r.4.
(4) The sheriff will then sell the seized property to pay the judgment creditor.
(ii) A copy of the prohibitory order must be served on the judgment debtor and
registered at the Registry of Titles or Land Office.
(iii) Once the prohibitory order is registered, it shall be deemed to have seized the
immovable property or the registered interest.
(iv) The prohibitory order is valid for 6 months from the date of the registration unless
renewed by an order of the court and registered at the Registry of Titles or Land
Office before the expiration of the prohibitory order.
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In Ban Hin Lee Credit Sdn Bhd v Utama Computer Centre Sdn Bhd [1991] 2
MLJ 327, the court said that its discretion to renew a prohibitory order ought to
be exercised with caution because a prohibitory order is a form of a caveat
which interferes with the rights of the registered owner of the land. The court
must be satisfied with the reasons for renewing the prohibitory order.
In this case, the judgment creditor applied for several renewals after the expiry
of the prohibitory order. The renewal orders made by the senior assistant
registrar were held to be ultra vires under 0.47 r.6(g). Also, the applicant did not
give good reasons in the affidavit. As such the prohibitory orders were void and
would vitiate the order for sale.
(i) The sale of land can only be made after 14 days after the registration of the
prohibitory order.
(ii) The conditions of sale may be drawn up by the sheriff or by the solicitors and
must be approved by the judge.
(iii) The judgment debtor may apply by notice of application to a judge to postpone the
sale on the ground that he can raise the judgment sum. The court may postpone
the sale for such period and terms as are just.
(iv) The judgment creditor may also apply for a receiver to be appointed to receive the
rents and profits until the sale or in lieu of the sale.
(v) Any person whose interests are affected may apply to the court to set aside the
order for sale on the grounds of a material irregularity or fraud in publishing or
conducting the sale.
(1) The court may appoint a sheriff to execute a writ of seizure and sale: s. 12 CJA 1964.
(ii) The writ of seizure and sale may be executed between 9 am and 4 pm unless
the sheriff otherwise orders.
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(iii) Where any movable property is seized by the sheriff, a notice of seizure in Form
91 must be given to the execution debtor. If the movable property is removed, he
must give an inventory of the property so removed to the execution debtor.
(iv) The sheriff executing an order to arrest must indorse thereon the day, hour
and minute of the arrest.
(v) The sheriff must sell all property seized (subject to these rules) by public auction
between 9am and 4 pm and a notice of the intended sale in Form 92 must be
posted on the Notice Board of the Registry 7 days before the sale.
(1) The judgment debtor may apply to the court to stay the execution of the writ of seizure
and sale.
(2) The court may stay the execution either absolutely or for such period and conditions as
the court thinks fit if it is satisfied that:
(a) there are special circumstances; or
the applicant is unable from any cause to pay the money.
liability of the insurers under an insurance policy- is a debt that can be garnished?
in Cheong Heng Loong Goldsmiths (KL) Sdn Bhd v Chan Kim Swi (Capital
Insurance Bhd, Garnishee) [1997] 5 MLJ 191,
It is trite law that the liability of the insurers under an insurance policy is not a debt which
could be attached.
The order for attachment could only be made if the applicant can successfully establish
that there is in law a debt due from the garnishee to the judgment debtor. In this case
there was no debt due to the insured (Dl, judgment debtor) from the garnishee (D2).
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But note the decision of Gopal Sri Ram JCA at the Court of Appeal [2004] 1 MLJ 353
which clarified this issue
It is a pre-condition that the debt must be due to the judgment debtor ie an actionable
debt at the time of the application fora garnishee order Saw Swan Keev Sim Lim Finance
(M) Bhd [1985] 1 MLJ 221, FC (a debt is a sum payable in respect of a liquidated money
demand recoverable oy action.
In Kedah Kelang Papan Sdn Bhd v Hansol Sdn Bhd (Teknibina Advisory Services Sdn
Bhd, Garnishee) [1988] 1 MLJ 434 (the following propositions where laid down by Lim
Beng Choon J (as his Lordship then was) (at 437):
(1) no garnishee order can be made unless some person, at the time when the order is
made, is indebted to the judgment debtor. If there be a debt in presenti, of course an
order can be made to attach the debt;
(2) if there is no a debt payable in presenti, but there is a debt in existence, debitum in
presenti, but payable in the future, such an order can still be made with regard to the
debt whether legal or equitable;
(3) the words ‘or accruing’ are intended to apply to those cases in which there are debita
in praesenti, solvenda in futuro (debts owed at present time payable in the future).
On the facts of the above case, a question arose as to whetherthe sum of money
already earned by the judgment debtor in respect of works carried out under a contract
of construction and which sum was retained by the garnishee as retention money for the
purpose of compensating the latter for defect in the works carried out by the judgment
debtor could be garnished. It was held that the retention money is the judgment debtor’s
own hard-earned money that has been retained and not money which has yet to
beearned. As such, the retention money must constitute a debt due from the garnishee to the
judgment debtor although it is payable in futuro.
See also Keen Builders Sdn Bhd v Utara Dua (M) Sdn Bhd (Samuda (M) Sdn Bhd,
Garnishee) [1998] 2 CLJ Supp 256,
Procedure:
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. .• Application for show cause order, is made by ex-parte notice of application
supported by an affidavit in Form 98 stating:
• the judgmenVorder to be enforced and the amount unpaid;
• to the best of the garnishor’s belief that the garnishee is within
jurisdiction and is indebted to the judgment debtor; and
• the sources of that information and belief: r.2
• Service; The order to show cause (order nisi) must be served on:
• An order absolute in Form 99 shall be made if the garnishee does not attend or
does not dispute the debt due: r.4(l).
Where the garnishee disputes liability, the court may:
• summarily determine the issues; or
• try that issue only: r.5.
• Any dispute must be referred to the judge as held in Syarikat Seng Lian Trading v Roxy
(M) Sdn-Bhd [1978] 1 MLJ 221. Here, the garnishee, when served with a show cause
order, denied owing any money to the judgment debtor. The senior assistant registrar tried
the issue summarily and found the garnishee liable. On appeal by the garnishee, the
Federal Court held that the senior assistant registrar had no jurisdiction to try the matter
summarily and should have referred it to the judge for trial.
Whether a garnishee order prevails when a Mareva injunction is in existence:
In Labtec Sdn Bhd v Resilent Construction Sdn Bhd (Syarikat Telekom Malaysia Bhd, 3 rd
Party, Perangsang Aluminum Sdn Bhd, Intervener) [1992] 2 MLJ 853 (Lim Beng Choon
J)),
a judgment creditor (JC) obtained a garnishee order absolute against the garnishee. At the
material time, there was in a Mareva injunction restraining the judgment debtor (JD) from
disposing of or dealing with any moneys due and/or owing to the judgment debtor from the
garnishee. The garnishee appealed on the ground that the grant of the garnishee order
absolute was in violation of the Mareva injunction.
The High Court held that the Mareva injunction merely restrained the JD from disposing of or
dealing with any moneys received and/or due and owing to the defendant from the garnishee.
It did not prevent the JC from resorting to 0.49 r.l of the Rules to garnish the amount of the
debts due to the JD from the garnishee. By 0.49 r.2 of the Rules there can be no dispute that
upon the issue and service of the order to show cause on the garnishee, the attachment of the
property of the JD has been effected and the garnishee is asked to appear only to show cause
as to why he should not release the debt to the JC.
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A defendant may set aside a garnishee order absolute:
In Cedar Trading Sdn Bhd v Dong Ah Construction [1999] 5 MLJ 73, the court held that
although 0.49 RHC does not provide for an application to vary or set aside a garnishee order
made absolute, it was not improper for D to apply to set aside the garnishee order in the instant
case as it was not served with the show cause notice. At the hearing before the senior
assistant registrar, D was not represented and it had no opportunity to dispute the garnishee
proceedings. Under 0.92 r.4 RHC, the court can hear D’s application under its inherent powers
and make any order as may be necessary to prevent injustice or an abuse of the process of
the court. The garnishee order was, therefore, set aside.
Right to set-off debt:
• In Saw Swan Kee v Sim Lim Finance (M) Bhd [1985] 1 MLJ 221, the Federal Court said
that the garnishee cannot set-off any debt owing to him from a judgment creditor but can
setoff any debt against the judgment debtor.
• This was followed in Keen Builders (supra).
• The court may then try the issue summarily or order that the issue be tried before the
registrar. r.6(2).
• In Behn Mayer etc v Agropharm etc [1988] 2 MLJ 636 (HC), George J said that an
intervener cannot set aside an order absolute.
• Tay Way Boon & Ors v Omar Marican Holdings Sdn Bhd & Ors [1991] 1 MLJ 122
• Although, garnishee proceedings does not apply against the government, s.35
Government Proceedings Act 1956 provides that the money payable by the
government to another can be attached only with the consent of the Finance
Minister or the Chief Minister of a State.
• The judgment creditor may apply by ex-parte summons supported by an affidavit
and the order must be served on the government.
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• Note that in Shukeriah bt Abas v Ketua Setiausaha Perbendaharaan Kementerian
Kewangan Malaysia & 2 Ors [2000] AMR 3936, the High Court held that there is no
specific provision in s.35 Government Proceedings Act 1956, requiring the prior
written consent of the Government before garnishee proceedings may be
instituted against it. Hence, there was practically nothing to prevent P from having
filed the garnishment proceedings before obtaining the consent of the Government
to do so. P could have applied for such consent subsequently, via the normal
channels of communication, or by way of a subpoena against the Minister of
Finance, and produce the written consent in the course of the proceedings. [P's
suit dismissed with costs.]
I
However, the bank may in its discretion retain a sum to the amount ordered by the court
to be paid into court.
• Thus, the judgment creditor may take garnishee proceedings for the judgment
debtor to pay by installments through the deduction of his salary by the garnishee (his
employer).
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S.51 EPF Act 1991:
• Money in the EPF cannot be attached,
• If the judgment debtor withdraws the EPF and puts the money in the bank, then the
money can be attached by way of garnishee proceedings.
• Procedure: 0.50
• As for garnishee proceedings, the procedure consists of 2 stages:
• 1st stage: show cause order; and
• 2nd stage: hearing of further consideration.
On the date appointed for the hearing of further consideration, the court shall, unless it
appears that there is sufficient cause to the contrary, make the order absolute with or
without modifications: r.6(l).
Factors to be considered
In Roberts Petroleum Ltd v Bernard Kenny Ltd (in liq) [1982] 1 All ER 685, Lord Brandon of
the Court of Appeal considered and summarised the principles applicable at this stage, namely:
• The question whether a changing order should be made absolute is one for the
discretion of the court.
• The burden of showing cause why a charging order nisi should not be made absolute
is on the judgment debtor.
• For the purpose of the exercise of the court's discretion, there is in general at any
rate, no material difference between the making absolute of a charging order nisi on
one hand and a garnishee order nisi on the other hand.
• In exercising its discretion, the court has both the right and the duty to take into
account all the circumstances of any particular case, whether such circumstances
arose before or after the making of the order nisi.
• The court should so exercise its discretion as to do equity, so far as possible to all the
various parties involved, that is to say, the judgment debtor and all other unsecured
creditors.
• Appointment of a receiver:
The registrar has the power to make an order for the appointment of a receiver and to
grant an injunction: 0.51 r.2.
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• Application:
An application to appoint a receiver may be made in accordance with 0.30 r.l by ex-parte
or inter parte summons or motion: 0.51 r.3
• Usually receivers are audit firms which are expensive. Hence, if the sum of
judgment is small, the judgment creditor should consider other ways of
enforcement.
• It shall not be necessary to serve formal notice to show cause, but the Court shall
ensure that ft person alleged to be in contempt understands the nature of the offence
alleged against him and has the opportunity to be heard and the Court shall record
the proceedings.
• Where a Judge is satisfied that a contempt has been committed in the face of the
Court, the Judge may order the person in contempt to appear before him on the
same day at the time fixed by the Court for the purpose of purging his contempt.
• Where such person has purged his contempt, by tendering his unreserved apology to
the Court, and the Judge considers the contempt to be not of a serious nature, the
Judge may excuse such person and m further action shall be taken against him.
• Where such person declines or refuses to purge his contempt, then the Judge shall
proceed to sentence him.
• Before applying for an order of committal, leave of court must first be obtained: r.2(l).
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• When leave has been granted, the application for the order of committal must be made by
notice of application and the notice of application must be served at least 8 clear days
before the hearing: r.3{l) & (2).
• The hearing is usually in open court and the court may commit him to prison or
impose a fine: r.5.
• If a corporation is guilty of contempt of Court, the Court may fine the corporation or punish
an officer of the corporation who caused or wilfully permitted or contributed the contempt of
Court or fine the corporation and punish the officer: 0.52 r.5A (w.e.f. 22.9.2000).
• The court has discretion to order a stay of execution of the order of committal
for a specified period: r.6(l).
• Leave of court:
• Leave of court to apply for a writ of possession is required.
• Such leave will only be granted if it is shown that every person in actual possession
has received notice of the proceedings to enable him to apply to the court for any
relief.
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