After a judgment or order has been issued by the court, the parties must comply with and execute the judgment.
However, there are also those who do not comply and do nothing as the court has ordered.
For example:
Ali filed a civil suit against Borhan for failing to pay the sale and purchase payment of RM500,000 and the court ordered Borhan to pay the amount. But Borhan later did not pay.
Here, Ali can make legal action against Borhan through the suitable method of execution of judgment. It aims to enforce the RM500,000 judgment and claim his rights against Borhan.
There are several methods of execution of judgments that can be used. In this week, I will share 4 of them.
JUDGMENT DEBTOR SUMMONS
The Judgment Debtor will be summoned to the court to give evidence regarding the assets and payment of the debt.
An order may be issued for the Judgment Debtor to pay the amount of the judgment in a lump sum or instalment.
If the Judgment Debtor fails to appear in court, an arrest warrant may be issued. If after being called he still fails to comply with the order to pay, his actions can be considered an insult to the court and can be imprisoned.
WRIT OF SEIZURE AND SALE
The Judgment Creditor will seek an order from the court to confiscate the movable assets of the Judgment Debtor.
Sheriffs or bailiffs will be ordered to make seizure or confiscation at the premises of the Judgment Debtor.
Then, the assets will be sold through the auction process to settle debts that the Judgment Debtor failed to pay.
GARNISHEE
This is one of the methods if the Judgment Debtor has a bank account.
The Judgment Creditor will seek an order from the court to instruct the bank to attach the amount in the Judgment Debtor account.
A court order can also be obtained for the bank to freeze the Judgment Debtor’s account.
Next, the bank will be ordered to hand over the money available in the Judgment Debtor’s account to the Judgment Creditor to settle the judgment debt.
BANKRUPTCY
Bankruptcy is made to bankrupt the Judgment Debtor who is an individual especially if the judgment involves monetary claim.
Judgment Creditor can file for bankruptcy action if the amount of indebtedness amounted to RM100,000.
If a person has been bankrupted, there are many implications that will limit Judgment Debtor such as deactivated bank accounts, restrictions in the withdrawal of money and employment restrictions.
BANKRUPTED FOR FAILURE TO PAY THE BALANCE OF THE DEPOSIT AND SALE PRICE OF PROPERTY PURCHASE!
JULIA & ANOR V CHOO [2022] MLJU 2755 (not the real name)
Julia and her friend Anna entered into a Sale and Purchase Agreement with Choo but did not pay the remaining deposit and the remaining purchase price. Choo sued them and successfully obtained a court order to demand payment from Julia and Anna.
However, Julia and Anna failed to comply with the court order to pay and Choo filed a bankruptcy action.
Julia and Anna then filed an application to waive the bankruptcy notice because there was an issue regarding the amount of the claim.
The court rejected Julia and Anna’s application to waive the bankruptcy notice after failing to file a notice or affidavit to Choo, to object to the issue.
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