Enforcement - garnishee order

A garnishee order is used to seize debts owing to the judgment debtor. For example, if Y owes you money as your judgment debtor, and in turn, Z owes him money, then the garnishee order can be delivered to Z. Z will then be ordered to pay you the amount owed up to the debt owed to you by Y.

For a business, their accounts receivable would be a good source for serving garnishee orders. An examination of judgment debtor can be used to determine who the appropriate parties are and the amounts owing.

For businesses and individuals, banks accounts also represent a major source of debts owing to judgment debtors.

Note again, garnishee orders costs money to execute.

Enforcement - writ of seizure and sale

A writ of seizure and sale is used to seize assets belonging to the debtor for later sale.

A court official (a bailiff or sheriff, for the Subordinate Courts and High Court respectively), together with the creditor or his representative will go to premises occupied by the debtor. If the premises are locked, then another appointment will have to be made. At the second appointment, the creditor can bring along a locksmith to open any locked premises.

On the premises, the creditor will point out assets which he thinks belong to the debtor. The court official will then affix official stickers to show that the assets are under control of the court, and must not be sold or otherwise disposed off.

At a later date, an auction will be held. (Note, that auction fees must be paid first by the creditor). From any auction proceeds, after deduction of expenses of the auctioneer and court official, and any legal costs, the balance is used to pay the judgment creditor. Any surplus will then belong to the debtor.

Enforcement - examination of judgment debtor

Examination of judgment debtor.

This is a procedure where the debtor has to answer questions relating to this assets eg, his bank accounts, his vehicles, etc. Questions are also asked about past transactions relating to his assets.

The questions are asked in written form and answers are done likewise. The Subordinate Courts has a standard list of questions that can be used by any creditor. This can of course be modified where necessary.

Normally, there is no actual appearance in court of the judgment debtor. However, where necessary, an application can be made to court for the personal attendance of the debtors for cross-examination.

Several years ago, 2 Mediacorp actors were fined in court for not answering the examination of judgment debtor questions in relation to a company of which they were directors.

Enforcement of Tribunal orders - general

Once you have won an order from the Tribunal for payment by the other party, you still have to worry about getting payment. Sometimes, you have to apply more pressure on the other party in order to actually get money.

Enforcement or execution refers to the steps that you take to get payment. They are -

a) examination of judgment debtor,
b) writ of seizure and sale,
c) garnishee order, and
d) winding up or bankruptcy.

(A lawyer may quibble with some of the above being classified as enforcement, but this post is intended to be a general guide only).

Later posts will elaborate on these.

Point to note however is that usually these steps will require hiring a lawyer, and therefore incurring more costs.