When a debtor fails to pay after a formal letter of demand, legal proceedings may be necessary. As a trusted debt recovery law firm, we understand the importance of knowing where to file and what to expect to ensure timely and effective recovery.
- Which Court Should You File In?
The amount of your claim determines the appropriate court: –
- Magistrates’ Court – for debts up to RM100,000;
- Sessions Court – for debts above RM100,000 and up to RM1,000,000;
- High Court – for debts exceeding RM1,000,000.
Our firm handles the filing of debt recovery claims across all levels of court in Kuala Lumpur, Selangor, and throughout Malaysia, ensuring that each matter is commenced in the appropriate forum based on the value of the debt.
- Court Procedure for Debt Recovery
- a) Filing of Writ and Statement of Claim
Proceedings begin with the filing of a Writ and Statement of Claim, stating the amount due and the contractual or factual basis of the claim. Parties are bound by their pleadings, and a properly drafted Statement of Claim is crucial to the strength and success of the entire case.
- b) Service on Defendant
The Writ and Statement of Claim must be served on the Defendant. Where the Defendant is an individual, personal service is required. For companies, service is typically effected at the registered address. Upon proper service, the Defendant has 14 days to enter appearance and subsequently file a Defence.
- c) Judgment in Default
If the Defendant fails to take timely steps after being served, the Plaintiff may apply for Judgment in Default under the Rules of Court 2012. This is one of the most efficient routes to recover debt from a non-responsive debtor.
- Judgment in Default of Appearance – where the Defendant does not file a Memorandum of Appearance within 14 days of service.
- Judgment in Default of Defence – where the Defendant enters appearance but fails to file a Defence within the stipulated time.
We scrutinise every procedural timeline and take prompt action to obtain judgment where appropriate, ensuring that clients’ rights are enforced without unnecessary delay.
- d) Summary Judgment (if appropriate)
Even if a Defence is filed, if it amounts to a bare denial or is unsupported by evidence, the Plaintiff may apply for Summary Judgment. This allows the Court to decide the matter without a full trial, provided there is no triable issue. This helps to avoid prolonged litigation.
- e) Full Trial (if necessary)
Where disputes of fact arise, the matter proceeds to trial. Witnesses will be called, documents tendered, and the Court will decide based on the evidence presented.
- Judgment and Enforcement
If judgment is granted, whether in default or otherwise, various enforcement mechanisms can be employed, including: –
- Writ of Seizure and Sale
- Garnishee Proceedings
- Judgment Debtor Summons
- Bankruptcy or Winding-Up Proceedings
As an experienced debt recovery law firm, we assist clients across KL, Selangor, and throughout Malaysia in post-judgment enforcement, ensuring effective recovery of debts.
Conclusion
Knowing which court to file in and the available court procedures for debt recovery can significantly improve your chances of success. Whether you are a growing SME or a large corporation, a well-managed claim, guided by an experienced corporate lawyer in Malaysia, makes all the difference.
For structured legal assistance, explore our retainer packages, tailored to handle everything from routine legal needs to litigation support.
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