Garnishee Proceedings
What are garnishee proceedings?
Garnishee proceedings are a legal process by which a creditor (the judgment creditor) can enforce a judgment by obtaining a court order to seize money or assets owed to the debtor (the judgment debtor) by a third party (the garnishee). This is typically used to intercept funds in bank accounts or other financial assets held by the garnishee on behalf of the debtor.
When can garnishee proceedings be initiated in Malaysia?
Garnishee proceedings can be initiated after a creditor has obtained a judgment against a debtor and the debtor has failed to satisfy the judgment debt. The creditor must apply to the court for a garnishee order, which will direct the third party (garnishee) to pay the debt owed to the creditor directly from the funds or assets they hold for the debtor.
Who can be a garnishee in garnishee proceedings?
A garnishee is typically a third party who owes money to or holds assets for the judgment debtor. Common garnishees include banks where the debtor has accounts, employers who owe wages to the debtor, or other individuals or entities that owe money to the debtor. The garnishee must be within the jurisdiction of the court.
What are the steps involved in garnishee proceedings in Malaysia?
The steps involved in garnishee proceedings generally include:
- Application for Garnishee Order: The judgment creditor applies to the court for a garnishee order nisi (temporary order).
- Service of Order Nisi: The order nisi is served on both the garnishee and the judgment debtor.
- Court Hearing: A court hearing is scheduled to determine whether the order nisi should be made absolute (final). The garnishee and judgment debtor can attend and present their case.
- Garnishee Order Absolute: If the court is satisfied, it will make the garnishee order absolute, directing the garnishee to pay the debt owed to the judgment creditor.
Can the judgment debtor or garnishee contest the garnishee order?
Yes, both the judgment debtor and the garnishee have the right to contest the garnishee order. The garnishee can argue that they do not owe any money to the debtor, or that the amount owed is less than claimed. The debtor can argue that the funds are exempt from garnishment or that the garnishee proceedings are improper. The court will consider these arguments at the hearing before deciding whether to make the garnishee order absolute.
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Disclaimer
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