Garnishee proceedings must be based on a specific adjudged sum; a second garnishee proceeding not arising from a judgment is invalid under the Rules of Court.

Introduction

[1] This is an appeal against the High Court's affirmation of the registrar's decision to cancel a garnishee proceeding to satisfy a judgment debt.

[2] We have on 11th April 2023 heard the appeal and thereafter unanimously dismissed it with costs of RM10,000.00 subject to the usual allocator. We now provide our grounds of decision.

Background

[3] By a consultancy agreement dated 6th February 2005 ("Agreement"), the Appellant (Judgment Creditor) agreed with the First Judgment Debtor to pay the Appellant consultancy fee amounting to 5% of the total value of invoices pertaining to the sale of fish by the Judgment Debtors to the Respondent (Garnishee).

[4] The Judgment Debtors failed to pay the Appellant in accordance with the Agreement.

[5] Hence, the Appellant on 20th December 2010 initiated an action via Penang High Court Civil Suit No. 22-413-2010 ("Suit") against the Judgment Debtors to recover the unpaid consultancy fee.

[6] The Appellant on 11th September 2015 obtained judgment against the Judgment Debtors in the Suit in sum of RM26,650,396.00 comprising of RM19,266,746.00 principal debt and RM7,383,650.55 interest ("Judgment"). The Judgment states as follows in the national language:

(a) Tuntutan Plaintif terhadap Defendan-Defendan adalah dibenarkan;

(b) Perjanjian di antara Plaintif dan Defendan Pertama bertarikh 6 Februari 2005 adalah sah dan berkuatkuasa;

(c) Defendan Pertama dan Defendan Kedua diperintahkan secara bersama dan berasingan membayar RM19,266,746.16 kepada Plaintif;

(d) Defendan Pertama dan Defendan Kedua diperintahkan membayar faedah sebanyak 4% jumlah penghakiman tersebut dari tarikh tuntutan Plaintif difailkan sehingga penghakiman dan faedah sebanyak 5% ke atas jumlah penghakiman tersebut dari tarikh penghakiman sehinnga penyelesaian penuh;dan

(e) Kos sebanyak RM30,000.00 dibayar oleh Defendan-Defendan kepada Plaintif.

[7] As the result, the Appellant on 13th October 2015 begun garnishee proceedings against the Respondent and others that include banks to enforce the Judgment for the sum of RM2,098,314.20. The learned registrar on 21st October 2015 granted the ex-parte garnishee order nisi.

[8] The Respondent disputed the garnishee proceeding by reason that there is no money due and owing by the Respondent to the Judgment Debtors.

[9] Consequently, the disputed garnishment proceeding proceeded for trial before the learned High Court Judicial Commissioner and the Appellant on 21st July 2016 obtained the garnishee order absolute for the sum of RM3,179,014.47 together with costs of RM10,000.00.

[10] The Respondent was dissatisfied and appealed to the Court of Appeal. The appeal was dismissed on 16th March 2017 with costs of RM20,000.00 and the sum of RM3,179,014.47 that was earlier paid into Court was accordingly ordered to be paid to the Appellant.

[11] The Respondent thereafter applied for leave to appeal to the Federal Court but this was dismissed on 6th January 2021.

[12] In the meanwhile, the Appellant had on 17th December 2019 begun another garnishee proceeding against the Respondent to enforce the Judgment. The learned registrar on 24th December 2019 granted the ex-parte garnishee order nisi.

[13] The Respondent hence applied to cancel the garnishee proceeding ("Application") which was allowed by the learned registrar on 20th August 2020.

[14] However, the Appellant was dissatisfied and accordingly appealed to the High Court.

In The High Court

[15] The Appellant contended in support of its appeal that the Judgment has declared the Agreement is valid and enforceable; thus, it was