JUDGMENT

David Wong Dak Wah JCA:

Introduction

[1] This is an appeal against the decision of the High Court dated 19 November 2012 in dismissing an appeal against the decision of the Senior Assistant Registrar dated 1 August 2012 in not allowing an application for a Garnishee Order Absolute by the Appellant and setting aside a Garnishee Order to show cause.

[2] On 18 June 2013 we heard the appeal and after due consideration by us, we allowed the appeal for reasons set out below.

Background Facts

[3] Summary Judgment was entered against the 2nd Respondent (who is the 1st Defendant in the High Court) for the sum of RM69,443,874.35 on 9 April 2010. The judgment debt related to a banking facility granted to the 2nd Respondent.

[4] The 2nd Respondent, 2nd and 3rd Defendants in the High Court had taken out a counterclaim against the Appellant. However this counterclaim was later withdrawn on 16 July 2010 pursuant to a settlement agreement reflected in a letter dated 15 July 2010. The settlement agreement, among other terms, provides as follows:

i. A stay of the execution of the summary judgment of RM69,443,874.35;

ii. The 2nd Respondent, 2nd and 3rd Defendant are to make installment payments to sa