Bank Kerjasama Rakyat (M) Berhad Koperasi Serbaguna Iman Malaysia Berhad PIHAK YANG DIGARNIS 1. ) MAYBANK ISLAMIC BERHAD 2. ) CIMB BANK BERHAD 3. ) KOPERASI CO-OPBANK PERTAMA MALAYSIA BERHAD 4. ) BANK MUAMALAT MALAYSIA BERHAD 5. ) AMBANK IS

Bank Kerjasama Rakyat (M) Berhad Koperasi Serbaguna Iman Malaysia Berhad PIHAK YANG DIGARNIS 1. ) MAYBANK ISLAMIC BERHAD 2. ) CIMB BANK BERHAD 3. ) KOPERASI CO-OPBANK PERTAMA MALAYSIA BERHAD 4. ) BANK MUAMALAT MALAYSIA BERHAD 5. ) AMBANK IS

The Court dismissed the JC's application for a Retransfer Order: the inherent jurisdiction under O.92 r.4 cannot be used to grant a remedy where statutory remedies (eg stay pending appeal) were available and not sought; a Retransfer Order exceeds the scope of garnishee jurisdiction and the omnibus clause; there was insufficient evidence of equitable fraud to lift the corporate veil; therefore the requested relief was refused and costs awarded.

Citation
WA-37G-12-02/2020 (Mahkamah Tinggi)
Parties
Judgment Creditor / Plaintiff: Bank Kerjasama Rakyat (M) Berhad; Judgment Debtor / Defendant: Koperasi Serbaguna Iman Malaysia Berhad; 1st Garnishee: Maybank Islamic Berhad; 5th Garnishee: Ambank Islamic Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
17 August 2021
Case Number
WA-37G-12-02/2020 (Mahkamah Tinggi)
Procedural Posture
Garnishee Proceedings (application for Execution) / Judgment on Application for Execution (post Order Nisi/order Absolute Appeals)
Outcome
Judgment Creditor's application dismissed
Legal Topics
Garnishee Order, Order Nisi and Order Absolute, Inherent Powers O.92 R.4 ROC 2012, Stay Pending Appeal, Equitable Fraud, Lifting Corporate Veil, Omnibus Reliefs and Scope, Costs
Source Language
Malay/English
Civil Procedure Enforcement of Judgment Banking Law Garnishee Order Order Nisi and Order Absolute Inherent Powers O.92 R.4 ROC 2012 Stay Pending Appeal Equitable Fraud +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 14 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Bank Kerjasama Rakyat (M) Berhad

Judgment Creditor / Plaintiff

Koperasi Serbaguna Iman Malaysia Berhad

Judgment Debtor / Defendant

Maybank Islamic Berhad

1st Garnishee

Ambank Islamic Berhad

5th Garnishee

Procedural Posture

Garnishee Proceedings (application for Execution) / Judgment on Application for Execution (post Order Nisi/order Absolute Appeals)

Legal Issues

  1. 1 Whether funds transferred out after Order Nisi but before Order Absolute can be garnished under O.92 r.4 ROC 2012
  2. 2 Whether Court can exercise inherent powers to order retransfers of funds (Retransfer Order)
  3. 3 Whether alleged transfers amount to equitable fraud enabling lifting of corporate veil

Ratio Decidendi

The Court dismissed the JC's application for a Retransfer Order: the inherent jurisdiction under O.92 r.4 cannot be used to grant a remedy where statutory remedies (eg stay pending appeal) were available and not sought; a Retransfer Order exceeds the scope of garnishee jurisdiction and the omnibus clause; there was insufficient evidence of equitable fraud to lift the corporate veil; therefore the requested relief was refused and costs awarded.

Court Disposition

Judgment Creditor's application dismissed

Orders

  • The Judgment Creditor's application for a Retransfer Order is dismissed.
  • Costs of RM5000.00 for each of Enclosure 31 and Enclosure 32 to be paid by the Judgment Debtor to the Judgment Creditor.