85 Questions On Garnishee Orders In Malaysia Answered By A Lawyer
While Rule & Co has published general guides on garnishee orders, the thing about general guides is they're not very helpful with specific questions.
As Garnishee Order MY is meant to be a one-stop knowledge base, we can't have that!
So went through the past 18 months of search data for our site and consolidated over 500 unique queries into what we believe is the most complete list of creditor-side questions on garnishee orders in Malaysia from the most basic to niche.
Of course, feel free to skip the reading and get in touch for a free case assessment.
Otherwise, click on the relevant area in the list below to skip to that part of the FAQ.
Basics
1. What is a garnishee order?
A garnishee order is a court order that directs a third party who owes money to your judgment debtor to pay that money to you instead. The most common third-party garnishee is the debtor's bank, because money in a bank account is a debt the bank owes its customer.
2. What are garnishee proceedings?
Garnishee proceedings are the court process used to obtain a garnishee order. They run in two stages: a garnishee order to show cause, which freezes the debt, followed by a hearing where the court decides whether to make the order absolute.
3. Who are the parties in garnishee proceedings?
There are three common parties:
The judgment creditor is the party owed money under the judgment.
The judgment debtor is the party who must pay.
The garnishee is the third party who owes money to the judgment debtor, such as a bank, a customer or a tenant.
Occasionally, there may be a third party who can be anyone that has a claim on the funds being garnished, and the garnishee can sometimes also be this third party.
4. What is the difference between a garnishee order to show cause and order absolute?
The order to show cause is the first, interim order. Once served, it binds the debt in the garnishee's hands so it cannot be paid out, and it fixes a hearing date.
The order absolute is the final order made at that hearing, requiring the garnishee to pay the creditor. The two are sometimes called the order nisi and the order absolute.
5. What law governs garnishee proceedings in Malaysia?
Garnishee proceedings are governed by Order 49 of the Rules of Court 2012. These Rules apply in the High Court, the Sessions Court and the Magistrates' Court.
6. When is a garnishee order most effective?
It works best when you know where the debtor banks or who owes the debtor money, and that account or debt is likely to hold funds when the order is served. It recovers money directly without selling assets, which can make it faster and cheaper than a writ of seizure and sale when attachable funds are available.
Bank accounts
7. Can a garnishee order be made against a bank account in Malaysia?
Yes. A credit balance in a bank account is a debt owed by the bank to its customer, so the bank can be named as garnishee. This is the most common use of garnishee proceedings.
8. Can a garnishee order be made against a company bank account?
Yes, if the company is the judgment debtor the process is the same as for an individual. The account must be in the name of the company that owes you under the judgment.
9. Can I garnish all of the debtor's bank accounts at once?
Yes, you can name more than one bank as garnishee if you have grounds to believe the debtor holds accounts with each of them.
However, there is no single order that reaches every bank in Malaysia, and you must give the court a basis for naming each bank.
10. Can a joint bank account be garnished?
Generally not where the judgment is against only one of the account holders. If the judgment is against all the joint holders, the account can be garnished.
11. Can fixed deposits, unit trusts or investment accounts be garnished?
Fixed deposits can generally be garnished, including deposits that have not matured, and a cash balance held in an investment account may be garnishable. Any valid existing security, assignment or right of set-off can limit the debt available for attachment.
Unit trust holdings and investment portfolios are usually property rather than a bank debt. The available enforcement method depends on the asset and its legal structure; where applicable, it may include a charging order.
12. Can a law firm's client account or other trust account be garnished?
Not for a debt owed by the account holder personally. Money in a client account or trust account belongs to the clients or beneficiaries, not to the firm or trustee.
If the money held on trust belongs to your judgment debtor, the position is different and needs to be assessed on the facts.
13. Can a Malaysian garnishee order reach a bank account overseas?
Generally no. Order 49 requires the garnishee to be within the court's jurisdiction, but an overseas account also raises questions about the bank entity, the branch holding the account, where the debt is located and whether payment under a Malaysian order would discharge the bank abroad.
Enforcement will usually need to proceed in the country where the account is held, through registration of the judgment or a fresh action on it, subject to that country's law.
14. How do I find out which bank the debtor uses?
While there is no public register of bank accounts, common sources include cheques or transfers the debtor has made to you, invoices showing payment details, and correspondence - see our guide to finding debtor bank accounts.
If you have no information, you can apply to examine the judgment debtor in court about their assets under a judgment debtor summons (JDS).
15. Do I need the debtor's exact account number and branch?
Generally no. Your supporting affidavit should state the name and address of the branch where you believe the account is held and the account number if you know it. The more detail you give, the easier it is for the bank to locate the funds.
16. How do I prove to the court the debtor holds a bank account?
You need to state on affidavit that, to the best of your information or belief, the bank holds money for the debtor, and give the sources of that belief.
Copies of cheques, remittance advices or payment instructions from that account are the usual evidence.
17. How quickly is the account frozen after the order is served?
A better question is how quickly you can serve the initial order!
The debt is bound from the moment the garnishee order to show cause is served on the bank, and in our experience banks usually act on service without delay.
18. Does the order freeze the whole account or only the judgment amount?
The order attaches the debt owed by the bank up to the amount specified, typically the unpaid judgment sum and costs allowed by the court. Valid existing rights of set-off or security can reduce the attachable amount.
An excess balance may remain available, but the practical restriction depends on the order's terms and the bank's implementation.
19. Does a garnishee order stop the debtor withdrawing money from the account?
Yes, as to the attached funds. Once the bank is served, it must not pay out the attached money contrary to the order. The attachment continues until the court discharges, varies or replaces it; it does not automatically expire on the hearing date.
20. What happens to money deposited after the bank is served?
A garnishee order attaches the debt owed at the time of service. Money paid into the account afterwards is generally not caught. If you expect funds to come in later, you may need a fresh application.
However, an existing debt owed at service can be attached even if it becomes payable later.
21. Does the bank charge a fee when it is served?
Some banks charge an administrative fee for processing a garnishee order. The amount and whether it applies depend on the bank and its terms with its customer.
22. Can a debt collection company freeze a debtor's bank account?
The short answer is most likely not.
A debt collection agency cannot freeze an account itself. For civil debt recovery, the judgment creditor must obtain a court order, ordinarily through a practising solicitor.
Employing someone with legal qualifications does not itself entitle an agency to conduct court proceedings for clients. The solicitor must be authorised to practise and properly instructed.
A creditor who holds a judgment can apply for a garnishee order, and before judgment, a freezing order if legal requirements are met - see our guide to a Mareva injunctions.
Other assets and garnishees
23. Can EPF (KWSP) savings be garnished?
No. The Employees Provident Fund Act 1991 protects EPF savings from attachment and execution, so a judgment creditor cannot garnish a debtor's EPF account.
24. Can ASB savings be garnished?
ASB holdings are units in a unit trust managed by ASNB within the PNB group, rather than a bank deposit. Whether the units can be reached through another enforcement method depends on the trust deed and applicable law.
Redemption proceeds or a cash balance may be garnishable if they are already a debt due or accruing due to the judgment debtor.
25. Can wages be garnished in Malaysia?
Earned wages are not automatically available for garnishment. Section 3 of the Debtors Act 1957 protects wages and salary, subject to limited court-authorised execution.
In particular, the court may authorise execution against the part of monthly wages or salary exceeding RM200, with special provisions for public officers.
Future wages that have not been earned cannot ordinarily be attached.
26. Can crypto assets be recovered through garnishee proceedings?
It depends on how the asset is held.
Crypto held in a self-custody wallet does not involve a debt owed by a third party. For assets held with an exchange, the position depends on the custody arrangement, the debtor's contractual rights, the exchange's jurisdiction and whether it owes an attachable debt.
There is no settled blanket rule that all exchange-held crypto can or cannot be garnished.
27. What assets are protected from garnishee proceedings?
Anything that is not a debt owed to the debtor and debts protected by statute generally falls outside garnishee proceedings, including:
EPF savings
money held on trust for others
joint accounts where only one holder is the debtor, and
contingent debts that may never become payable
28. Can I garnish money owed to the debtor by its customers?
Yes, if the money is due or accruing due, such as a customer with an unpaid invoice from your debtor, or a developer that owes your debtor a progress payment.
Money that depends on future work or a condition that has not happened yet is usually not attachable.
29. Can a garnishee order be used against the debtor's shares in a private company?
No. Shares are property, not a debt owed to the debtor. They are usually reached through a charging order over the shares, followed by an application for sale.
30. Can shares pledged to a bank be subject to a garnishee order?
Shares are not garnishable in any case, and shares pledged as security are also subject to the bank's prior rights. Any recovery from them would be through other enforcement methods and would rank behind the bank's security.
31. Can money held for a third party be garnished?
No. If the money held by the garnishee actually belongs to someone other than the judgment debtor, it is not a debt owed to the debtor. The third party can apply to the court to protect it, and the court may set the order aside.
32. Can a garnishee order against an individual affect their company's account?
No. A Sdn Bhd is a separate legal entity. A judgment against an individual, even a director or shareholder, does not allow you to garnish the company's accounts.
33. Can a director's personal account be garnished for a company debt?
Only if you also have a judgment against the director personally, for example under a personal guarantee. A judgment against the company alone does not reach the director's own accounts.
34. Can I garnish a sole proprietorship (enterprise)?
Yes. A sole proprietorship is not a separate legal entity, so a judgment against the business is a judgment against its owner. Accounts held in the business name and in the owner's own name can both be garnished.
35. Can garnishee proceedings be used on a deceased person's estate?
If the judgment debtor has died, enforcement has to proceed against the estate through its personal representatives. This involves additional procedural steps and is best handled with tailored legal advice.
36. Can garnishee proceedings be brought against the Government?
Two situations must be distinguished, governed by the Government Proceedings Act 1956.
If the Government is the judgment debtor, the usual route is a certificate for satisfaction under section 33, rather than ordinary attachment of Government funds.
If the Government is a garnishee that owes money to your judgment debtor, section 35 requires the prescribed written consent of the Minister of Finance or the relevant State Menteri Besar or Chief Minister before an attachment order can be made.
Before applying
37. Do I need a judgment before I can start garnishee proceedings?
Yes. Order 49 is only available to a party who has obtained a judgment or order for the payment of money. If you need to stop a debtor moving funds before judgment, the usual remedy is a Mareva injunction.
38. Can a consent judgment be enforced through garnishee proceedings?
Yes. A consent judgment is a judgment of the court like any other and can be enforced by garnishee proceedings once it is due and unpaid.
39. Do I need to send a letter of demand first?
The Rules of Court do not require a letter of demand before a garnishee application. The application is made ex parte so that the debtor is not warned and cannot move the money first.
40. Can a tribunal award, small claims judgment or CIPAA decision be enforced by garnishee?
A small claims judgment is a Magistrates' Court judgment and can be enforced by garnishee proceedings.
An unpaid award of the Tribunal for Consumer Claims is treated as an order of a Magistrates' Court for enforcement and can support garnishee proceedings, while other tribunal awards depend on their own governing statutes and may need registration or another enforcement step first.
A CIPAA adjudication decision must first be registered as a High Court judgment under section 28 of the Construction Industry Payment and Adjudication Act 2012.
41. Which court do I file garnishee proceedings in?
Normally, you file in the court that gave the judgment, whether that is the High Court, the Sessions Court or the Magistrates' Court. For a judgment registered or transferred for enforcement, follow the procedure of the court in which it is enforceable.
42. Must the application be filed under the same suit number as the judgment?
Yes. Garnishee proceedings are a step in enforcing an existing judgment, so the application is filed within the same suit. A judgment registered or transferred for enforcement may require the relevant registration or enforcement case number.
43. Can a judgment in a foreign currency be enforced through garnishee proceedings?
Yes. The application is not limited to judgments in Ringgit, but the amount will normally need to be converted into ringgit for enforcement.
44. Can garnishee proceedings be used in Sabah, Sarawak or Labuan?
Yes, the Rules of Court 2012 apply in the High Court in Sabah and Sarawak, which also covers Labuan.
If your judgment is from a court in Peninsular Malaysia and the garnishee is in East Malaysia, or the other way round, extra steps may be needed before enforcement.
45. Can licensed moneylenders use garnishee proceedings?
Yes. A licensed moneylender who has obtained judgment against a borrower can enforce it by garnishee proceedings like any other judgment creditor.
The process
46. What are the steps in garnishee proceedings?
Generally speaking:
File an ex parte notice of application with a supporting affidavit in the suit where you obtained judgment.
The court grants a garnishee order to show cause and fixes a hearing date.
Serve the order on the garnishee, then on the judgment debtor.
At the hearing, the court decides whether to make the order absolute.
Serve the order absolute on the garnishee, which then pays you.
47. What documents are needed for a garnishee application?
You need a notice of application, a supporting affidavit and a draft garnishee order to show cause. The affidavit should:
identify the judgment
state the amount still unpaid
give the debtor's name and last known address, and
explain why you believe the garnishee owes the debtor money
48. What standard of proof does the court require?
At the first stage, the court needs an affidavit stating your information or belief that the garnishee owes the debtor money, with the sources of that belief.
You do not have to prove the debt conclusively, but the belief must have a genuine basis. Whether to make the order absolute is a matter for the court's discretion at the hearing.
49. Is a garnishee application made ex parte?
Yes. The first application is made without notice to the debtor or the garnishee, so the funds can be frozen before anyone has a chance to move them.
50. How is the garnishee order to show cause served on a bank?
The order to show cause must be served personally on the bank in accordance with the Rules of Court and any court directions. Valid service on a corporate bank depends on the applicable service rules and the person or address served, not simply the bank's administrative preference.
Serve the bank before the debtor and at least seven days before the hearing.
51. Does the order also need to be served on the debtor?
Yes, unless the court otherwise directs. The judgment debtor must be served with the order to show cause at least seven days before the hearing so they have the opportunity to appear.
The garnishee must also be served at least seven days before the hearing. Order 49 specifically requires personal service on the garnishee; it does not impose the same express personal-service requirement on the debtor.
52. Can garnishee papers be served by email?
The Rules require personal service of the order to show cause on the garnishee. Email alone is not usually enough unless the court has allowed another mode of service or the garnishee's solicitors agree to accept service.
53. Can a garnishee application be filed online?
Yes. Filing in Malaysian courts is done through the courts' e-filing system, which covers garnishee applications.
54. Is the show cause stage a hearing?
Yes. On the date fixed, the court hears from the creditor and from the garnishee or debtor if they attend. The court then makes the order absolute, discharges it, or gives directions if the debt is disputed.
55. What happens after the court grants the order to show cause?
You extract the sealed order and serve it on the garnishee and the debtor within the time required. From service, the garnishee must hold the attached money until the hearing.
56. What should a bank do when it is served with a garnishee order?
The bank must preserve the attached debt up to the amount ordered, subject to any valid rights it raises with the court.
If it owes nothing or disputes the debt, it must comply with the order's affidavit, attendance and other directions and raise the issue through the court process.
Informally notifying the creditor's solicitors does not by itself satisfy those obligations.
57. What if the debt owed changes between filing and the hearing?
The order attaches debts due or accruing due at service, including an existing debt payable later. It does not ordinarily attach a separate debt arising only afterwards.
If the judgment debtor pays part of the judgment in the meantime, tell the court so the order absolute reflects the amount still unpaid.
58. How do I serve the garnishee order absolute on the bank?
Once the order absolute is sealed, serve a copy on the bank, usually with a covering letter stating the amount to be paid and the payment details for your solicitors' client account.
59. When does the creditor receive the money?
The garnishee pays after it is served with the order absolute. Payment by the garnishee discharges it from the debt to the debtor, up to the amount paid.
60. How do I check the status of a garnishee case?
You can check through the court's e-filing system using the case number, or through your solicitors.
61. Can more than one garnishee be named in one application?
You can name more than one garnishee, such as several banks. Practice varies on whether to proceed in one application or separate ones, and on whether a separate order is drafted for each garnishee.
In our case, when multiple garnishees are identified, we generally file one application for each. Garnishees tend to have different circumstances or objections, and separate filings, in our experience, help prevent procedural issues with the courts.
62. Can a garnishee order to show cause be amended?
Yes, the court can allow an amendment, for example to correct the garnishee's name or the amount. Apply promptly and follow any directions for fresh service and notice.
An amendment does not automatically attach additional funds retrospectively or bind a new garnishee from the original service date.
63. Can a garnishee application be withdrawn?
Yes, a creditor may withdraw, for instance if the debt is paid or the garnishee holds nothing.
If an order to show cause has already been served, obtain the appropriate discharge or release directions and notify the garnishee; do not assume withdrawal alone releases the attachment, and costs remain at the court's discretion.
Costs, limits and timing
64. How much does a garnishee order cost in Malaysia?
In our experience, while specific legal fees and costs always vary from case-to-case, a reasonable estimate is around the RM40,000 - RM50,000 range.
This is because a garnishee order is not something a creditor can obtain immediately after a debt goes unpaid, and for details see our guide to garnishee order costs in Malaysia.
65. Is there a minimum amount for a garnishee order?
Order 49 does not set a minimum judgment amount, but in practice, the amount should be large enough to justify the cost of the application, and our general conservative recommendation is RM100,000.
Of course, every case is different and sometimes circumstances can mean that a garnishee order is viable even with a lower debt amount, as our garnishee order minimum amount guide breaks down.
66. Is there a limit on how much can be garnished?
You can recover up to the amount still owed under the judgment, plus the costs of the garnishee proceedings. You cannot recover more than the garnishee actually owes the debtor.
67. How long does the garnishee process take?
This is something we unfortunately cannot definitely advise on as, there are too many factors that can affect how quickly the proceedings can conclude, from the court's schedule to whether or not the debtor or a third party raises objections.
68. How long does a garnishee order last?
The order to show cause binds the debt until the court decides at the hearing.
Once made absolute, the order can be enforced against the garnishee like a judgment, which itself can generally be enforced for up to 12 years under the Limitation Act 1953.
69. Can garnishee proceedings be started more than 6 years after judgment?
Yes, but once six years or more have elapsed since judgment, you must first obtain the court's leave before commencing garnishee proceedings. The court will consider whether to permit late enforcement, including the explanation for delay.
In Peninsular Malaysia, the Limitation Act 1953 separately limits recovery of arrears of judgment interest to six years from when the interest became due, while Sabah and Sarawak have their own limitation legislation.
70. Can the same garnishee application be made twice in one case?
You can make a fresh garnishee application in the same case, for example if the first one found no funds or the debtor later receives money.
Each application must have its own basis of belief that a debt is owed at that time, and each will also incur separate costs.
71. Is money recovered through a garnishee order taxable?
Tax treatment depends on the nature of the underlying sum and its previous tax treatment, though recovering a trade debt previously written off as a bad debt. deduction will generally bring the recovery into taxable income.
Problems and challenges
72. What happens if the debtor's account has no money in it?
If the bank owes no attachable debt, nothing is attached and the court will usually discharge the order. Costs are discretionary; the creditor is not automatically ordered to bear every party's costs.
You can apply again later or move to another method such as a writ of seizure and sale or judgment debtor summons.
73. What happens if the garnishee fails to comply with the order?
An order absolute can be enforced against the garnishee in the same way as a judgment. If a bank or other garnishee pays the debtor after being served with the order to show cause, it may still be liable to pay you.
74. What if the garnishee disputes that it owes the debt?
The court can decide the dispute summarily at the hearing, or order that the question be tried as an issue. It will not make the order absolute until it is satisfied the debt is owed.
75. On what grounds can a garnishee order be challenged or set aside?
Common grounds for attempting to stop a garnishee order from being made absolute include that:
no debt was owed
the money belongs to someone else
the account is joint
the judgment has been paid or stayed, or
the debtor is insolvent.
A valid right of set-off, security or assignment may also reduce or defeat the attachable debt.
Financial difficulty alone does not automatically prevent garnishment, though the court retains a discretion on whether to make the order absolute, taking account of competing rights and the applicable insolvency rules.
76. Does an appeal against a garnishee order stop it being enforced?
Not automatically. An appeal does not operate as a stay of execution, so the party appealing has to apply separately for a stay.
77. Can the court suspend garnishee proceedings?
Yes. The court can stay the proceedings, for example while an appeal against the judgment is heard or while a setting aside application is decided.
78. What if the funds are also subject to another court order or injunction?
The court must consider the terms and legal effect of each order, together with existing rights and statutory priorities. Between competing garnishee attachments, earlier service ordinarily gives priority, subject to those qualifications.
Garnishee orders and other remedies
79. Can garnishee orders and judgment debtor summons be used together?
Yes. A judgment creditor can use more than one method of enforcement, at the same time or one after another. A JDS examination can also reveal the bank accounts or debtors you need to name in a garnishee application.
80. Can garnishee proceedings and a writ of seizure and sale be used together?
Yes. A writ of seizure and sale targets the debtor's movable or immovable property, while a garnishee order targets money owed to the debtor. Running both can increase the chance of full recovery, but you cannot recover more than the judgment sum.
81. Can garnishee proceedings and a winding up petition be run at the same time?
Garnishee proceedings and winding-up proceedings can interact adversely as under the Companies Act 2016, attachment or execution put in force after presentation of a winding-up petition is void.
Section 533 of the Companies Act also restricts a creditor's ability to retain the benefit of an attachment against a liquidator; for attachment of a debt, completion requires receipt of the money. Obtaining an order absolute does not necessarily secure the proceeds against a liquidator.
82. What is the difference between an injunction and a garnishee order?
A Mareva injunction freezes the debtor's assets so they cannot be moved and can be obtained before judgment. It does not pay anything to the creditor. A garnishee order is only available after judgment and results in the money being paid to the creditor.
83. Is a garnishee order the same as a writ of distress?
No. A writ of distress is a landlord's remedy for unpaid rent under the Distress Act 1951, allowing the seizure of the tenant's goods on the premises. A garnishee order enforces any money judgment by attaching debts owed to the debtor.
84. Why choose garnishee proceedings over bankruptcy or winding up?
Garnishee proceedings pay the money to you directly. Bankruptcy and winding up are collective processes, so any recovery is shared among all creditors and usually takes longer. They can still be useful as leverage, or when there are no identifiable funds to garnish.
85. What happens to a garnishee order if the debtor goes bankrupt?
Under the Insolvency Act 1967, a creditor may lose the benefit of garnishment against the Director General of Insolvency unless the attachment was completed before the bankruptcy order and before notice of a bankruptcy petition or of an available act of bankruptcy.
If the proceeds fall into the bankrupt's estate, you will generally need to file a proof of debt to share in it.
Garnish your debtor’s bank accounts with Rule & Co.
With a decade in legal debt recovery, Rule & Co. has supported creditors through countless garnishee proceedings against debtor bank accounts. We guide you through the process from start to finish, helping you understand your options, navigate the court process, and take necessary steps towards recovering what you are owed.
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