KOPERASI SERBAGUNA IMAN MALAYSIA BERHAD 1. ) BANK KERJASAMA RAKYAT (M) BERHAD 2. ) MAYBANK ISLAMIC BERHAD 3. ) AMBANK ISLAMIC BERHAD

KOPERASI SERBAGUNA IMAN MALAYSIA BERHAD 1. ) BANK KERJASAMA RAKYAT (M) BERHAD 2. ) MAYBANK ISLAMIC BERHAD 3. ) AMBANK ISLAMIC BERHAD

The appeals were allowed and the order nisi was made absolute against the 1st and 5th garnishees because the Judgment Debtor failed to prove that the disputed bank sums were held on trust or equitably assigned to third parties or otherwise outside the Judgment Debtor's free control; the wage subsidy was a general financial assistance/reimbursement without demonstrated trust obligations and the alleged member settlements into the Ambank account were unsupported by evidence, therefore the monies belonged to the Judgment Debtor and were garnishable.

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; 2nd Garnishee: CIMB Bank Berhad; 3rd Garnishee: Koperasi Co-Opbank Pertama Malaysia Berhad; 4th Garnishee: Bank Muamalat Malaysia Berhad; 5th Garnishee: Ambank Islamic Berhad; 6th Garnishee: Ambank Malaysia Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
2 March 2021
Case Number
WA-37G-12-02/2020 (Mahkamah Tinggi)
Procedural Posture
Garnishee / Execution Proceedings Under Rules of Court 2012 / Appeal From Senior Assistant Registrar's Refusal to Make Garnishee Orders Absolute
Outcome
Appeal allowed; order nisi dated 9.6.2020 made absolute against 1st and 5th garnishees; costs awarded to Judgment Creditor.
Legal Topics
Garnishee Order, Attachment of Bank Accounts, Trust Creation and Certainties, Wage Subsidy Treatment, Priority of Wages, Order Absolute Vs Order Nisi
Source Language
Malay/English
Civil Procedure Trusts Employment Law Banking Law Cooperative Law Garnishee Order Attachment of Bank Accounts Trust Creation and Certainties +3 more

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Parties

Bank Kerjasama Rakyat (M) Berhad

Judgment Creditor / Plaintiff

Koperasi Serbaguna Iman Malaysia Berhad

Judgment Debtor / Defendant

Maybank Islamic Berhad

1st Garnishee

CIMB Bank Berhad

2nd Garnishee

Koperasi Co-Opbank Pertama Malaysia Berhad

3rd Garnishee

Bank Muamalat Malaysia Berhad

4th Garnishee

Ambank Islamic Berhad

5th Garnishee

Ambank Malaysia Berhad

6th Garnishee

Procedural Posture

Garnishee / Execution Proceedings Under Rules of Court 2012 / Appeal From Senior Assistant Registrar's Refusal to Make Garnishee Orders Absolute

Legal Issues

  1. 1 Whether sums held in bank accounts constitute 'any debt due or accruing due' and are garnishable
  2. 2 Whether government wage subsidy monies were held on trust for employees and thus not attachable
  3. 3 Whether monies credited into Ambank account were held for third parties (members/cooperative creditors) or belonged to judgment debtor

Ratio Decidendi

The appeals were allowed and the order nisi was made absolute against the 1st and 5th garnishees because the Judgment Debtor failed to prove that the disputed bank sums were held on trust or equitably assigned to third parties or otherwise outside the Judgment Debtor's free control; the wage subsidy was a general financial assistance/reimbursement without demonstrated trust obligations and the alleged member settlements into the Ambank account were unsupported by evidence, therefore the monies belonged to the Judgment Debtor and were garnishable.

Court Disposition

Appeal allowed; order nisi dated 9.6.2020 made absolute against 1st and 5th garnishees; costs awarded to Judgment Creditor.

Orders

  • Garnishee order to show cause dated 9.6.2020 declared an order absolute against Maybank Islamic Berhad (1st Garnishee)
  • Garnishee order to show cause dated 9.6.2020 declared an order absolute against Ambank Islamic Berhad (5th Garnishee)