BA-22NCC-151-12/2022 (SAHC) (Mahkamah Tinggi)

BA-22NCC-151-12/2022 (SAHC) (Mahkamah Tinggi)

Because the Plaintiff/Judgment Creditor had presented a bankruptcy petition against the Defendant/Judgment Debtor prior to initiating garnishee proceedings, section 50(1) of the Insolvency Act 1967 bars retention of the benefit of execution, and therefore the Order to Show Cause was set aside.

Citation
BA-22NCC-151-12/2022 (SAHC) (Mahkamah Tinggi)
Parties
Plaintiff / Judgment Creditor: Heo Joon Siong; Defendant / Judgment Debtor: Dato' Sri Ngu Tieng Ung; Garnishee: Hong Leong Bank Berhad; Garnishee: Malayan Banking Berhad; Garnishee: Alliance Bank Malaysia Berhad
Court
SAHC
Jurisdiction
Malaysia
Judgment Date
9 August 2024
Case Number
BA-22NCC-151-12/2022 (SAHC) (Mahkamah Tinggi)
Procedural Posture
Civil Garnishee Proceedings / Interlocutory Application to Set Aside Order to Show Cause
Outcome
Application to set aside Order to Show Cause allowed; Order to Show Cause set aside.
Legal Topics
Garnishment, Bankruptcy Petition, Stay of Execution, Section 50 Insolvency Act 1967
Source Language
Malay/English
Insolvency Law Bankruptcy Civil Procedure Garnishment Bankruptcy Petition Stay of Execution Section 50 Insolvency Act 1967

Case Brief

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Parties

Heo Joon Siong

Plaintiff / Judgment Creditor

Dato' Sri Ngu Tieng Ung

Defendant / Judgment Debtor

Hong Leong Bank Berhad

Garnishee

Malayan Banking Berhad

Garnishee

Alliance Bank Malaysia Berhad

Garnishee

Procedural Posture

Civil Garnishee Proceedings / Interlocutory Application to Set Aside Order to Show Cause

Legal Issues

  1. 1 Whether an Order to Show Cause for garnishee proceedings should be set aside because a notice of presentation of a bankruptcy petition was presented prior to the garnishment
  2. 2 Effect of section 50(1) Insolvency Act 1967 on execution or attachment once notice of presentation of a bankruptcy petition is made
  3. 3 Whether ongoing or stayed bankruptcy proceedings nevertheless bar enforcement by garnishment

Ratio Decidendi

Because the Plaintiff/Judgment Creditor had presented a bankruptcy petition against the Defendant/Judgment Debtor prior to initiating garnishee proceedings, section 50(1) of the Insolvency Act 1967 bars retention of the benefit of execution, and therefore the Order to Show Cause was set aside.

Court Disposition

Application to set aside Order to Show Cause allowed; Order to Show Cause set aside.

Orders

  • Order to Show Cause dated 24 April 2024 set aside
  • Plaintiff/Judgment Creditor to pay costs of RM1,500 to Defendant/Judgment Debtor, subject to allocatur