AFFIN BANK BERHAD Energypeak FZE

AFFIN BANK BERHAD Energypeak FZE

The Court of Appeal held the GOTSC only attaches debts existing as at the date of service; there is no continuing obligation on the garnishee to attach subsequent credits. The transactions relied upon by the High Court were internal reversals of dishonoured cheques (no funds actually received) and/or reduced by overdraft mechanics, therefore no additional debt was owing by the bank. High Court decision set aside; Garnishee Order Absolute entered for RM11.81; no costs.

Citation
W-04(IM)(NCC)-350-07/2022 (Mahkamah Rayuan)
Parties
Appellant (garnishee): Affin Bank Berhad; Respondent (judgment Creditor): Energypeak FZE; Judgment Debtor: Infinity Global Palm Oil Sdn Bhd
Court
IM
Jurisdiction
Malaysia
Judgment Date
19 June 2023
Case Number
W-04(IM)(NCC)-350-07/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (garnishee Proceedings) / Court of Appeal Judgment
Outcome
Appeal allowed; High Court order set aside; Garnishee Order Absolute entered for RM11.81; no order as to costs.
Legal Topics
Garnishee Order, Garnishee Order to Show Cause, Attachment of Debts, Third Party Debt Order, Interpretation of Procedural Rules
Source Language
Malay/English
Civil Procedure Banking Law Execution of Judgments Garnishee Order Garnishee Order to Show Cause Attachment of Debts Third Party Debt Order Interpretation of Procedural Rules

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Parties

Affin Bank Berhad

Appellant (garnishee)

Energypeak FZE

Respondent (judgment Creditor)

Infinity Global Palm Oil Sdn Bhd

Judgment Debtor

Procedural Posture

Civil Appeal (garnishee Proceedings) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a Garnishee Order to Show Cause (GOTSC) attaches only debts existing at the date of service or also subsequent sums credited thereafter
  2. 2 Whether a garnishee (bank) has an ongoing obligation to continuously attach monies credited into a judgment debtor's account after service of a GOTSC up to entry of Garnishee Order Absolute
  3. 3 Whether the specific account transactions relied upon by the High Court were actual credits available to the judgment debtor or internal reversals/overdraft corrections

Ratio Decidendi

The Court of Appeal held the GOTSC only attaches debts existing as at the date of service; there is no continuing obligation on the garnishee to attach subsequent credits. The transactions relied upon by the High Court were internal reversals of dishonoured cheques (no funds actually received) and/or reduced by overdraft mechanics, therefore no additional debt was owing by the bank. High Court decision set aside; Garnishee Order Absolute entered for RM11.81; no costs.

Court Disposition

Appeal allowed; High Court order set aside; Garnishee Order Absolute entered for RM11.81; no order as to costs.

Orders

  • Appeal allowed and High Court order set aside
  • Garnishee Order Absolute entered for RM11.81 payable to the judgment creditor