LATITUDE RESOURCES SDN BHD MAJLIS AGAMA ISLAM WILAYAH PERSEKUTUAN

LATITUDE RESOURCES SDN BHD MAJLIS AGAMA ISLAM WILAYAH PERSEKUTUAN

The High Court found the Sessions Court was plainly wrong in construing the application as relating to the RM2,000,000 contract sum and in holding the application related only to the retained 50%; because the garnishee was served with the order to show cause while all performance bond funds were held and yet released RM222,093.71 thereafter, the garnishee order nisi had attached the debt and the appellant was entitled to garnish RM250,000 from the performance bond; the Sessions Court decision was set aside and the garnishee order absolute granted.

Citation
JA-12ANCC-8-06/2022 (Mahkamah Tinggi)
Parties
Appellant / Judgment Creditor: Latitude Resources Sdn. Bhd.; Respondent / Garnishee: Majlis Agama Islam Wilayah Persekutuan; 1st Judgment Debtor / Main Contractor: Prasarana Selatan Sdn. Bhd.; 2nd Judgment Debtor / Managing Director: Muhammad Narulhaizam bin Md Yusof; 3rd Judgment Debtor: Nationoil Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 August 2023
Case Number
JA-12ANCC-8-06/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court / Judgment on Appeal
Outcome
Appeal allowed; Sessions Court decision set aside; garnishee order absolute granted in favour of appellant
Legal Topics
Garnishee Order, Performance Bond, Order to Show Cause, Attachment of Debt, Consent Judgment
Source Language
Malay/English
Civil Procedure Garnishment Contract Law Construction Law Garnishee Order Performance Bond Order to Show Cause Attachment of Debt +1 more

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Parties

Latitude Resources Sdn. Bhd.

Appellant / Judgment Creditor

Majlis Agama Islam Wilayah Persekutuan

Respondent / Garnishee

Prasarana Selatan Sdn. Bhd.

1st Judgment Debtor / Main Contractor

Muhammad Narulhaizam bin Md Yusof

2nd Judgment Debtor / Managing Director

Nationoil Sdn. Bhd.

3rd Judgment Debtor

Procedural Posture

Civil Appeal From Sessions Court / Judgment on Appeal

Legal Issues

  1. 1 Whether the RM2,000,000 contract sum was the subject of the garnishment application
  2. 2 Whether the garnishment related to the whole performance bond or only the retained 50% balance
  3. 3 Whether the garnishee could release funds after service of an order to show cause

Ratio Decidendi

The High Court found the Sessions Court was plainly wrong in construing the application as relating to the RM2,000,000 contract sum and in holding the application related only to the retained 50%; because the garnishee was served with the order to show cause while all performance bond funds were held and yet released RM222,093.71 thereafter, the garnishee order nisi had attached the debt and the appellant was entitled to garnish RM250,000 from the performance bond; the Sessions Court decision was set aside and the garnishee order absolute granted.

Court Disposition

Appeal allowed; Sessions Court decision set aside; garnishee order absolute granted in favour of appellant

Orders

  • Appeal allowed with costs
  • Sessions Court judgment dated 14.6.2022 set aside