BALAKRISHNAN PILLAI A/L LETCHUMANAN v SYARIKAT USAHASAMA KAM-LDAH SDN BHD (DALAM PENERIMA DAN PENGURUS) PIHAK YANG DIGARNIS RHB BANK BERHAD
Catchwords
This is an appeal lodged by the Judgment Creditor ("JC") against the decision of the learned Senior Assistant Registrar (“SAR”) of the Kuala Lumpur High Court given on 06 June 2025, which allowed the show cause by the Judgment Debtor ("JD") and dismissed the JC’s application for the Garnishee Order to be made absolute. It involves the JC's right to garnish the Judgment Sum of RM1,575,190.95 from the JD's bank account. The Court finds that the floating charge under the Debenture has long since crystallised into a fixed charge, which means that s. 392(1)(a) of the Companies Act 2016 cannot be applied. As a result of the Debenture, the JD's assets, including the money in its bank account, are subject to a fixed charge. Thus, these assets are not part of the JD's own assets and cannot be garnished to satisfy claims by unsecured creditors. In light of the above, the Court finds that the appeal by the JC to be without merit. The appeal is therefore dismissed with costs.
Judgment
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Read on eJudgmentSource: eJudgment (wa-37g-309-10-2024)