Prohibitory Order – law reference

Prohibitory Order – law reference

Let’s begin be defining what a prohibitory order is first, in monetary claims the judgment debtor is the person that is against the judgment or order that has been made or has been passed down. But basically it is generally known as the losing party.

The other party is known as the judgment creditor and the judgment is obtained from the payment of the money by the other party. If a situation arises where the judgment debtor has refused or has neglected to follow through on the judgment that has been made by the court. If this happens then the judgment creditor can then proceed to obtain the prohibitory order if the property of the judgment debtor involves land.

So basically the prohibitory order is an order that is obtained through the court that prohibits the judgment debtor from making any form of deals in relations to the property of their land or any interest in the land that is held by them. After obtaining the prohibitory order, the judgment creditor then is able to proceed to obtain the Order for Sale, which then they will be able to auction of that particular piece of land to recover the amount that is owed. However obtaining the prohibitory order may not be justified it that land is charged to a bank or any other financial institution for a huge loan. So you want to make certain of the details first before you take any action against the judgment debtor.

What should be done before obtaining a prohibitory order against the judgment debtor’s land property?

The first thing that you will need to do is to conduct a land property search on the judgment debtor with the Land Office or the “Penolong Pemungut Hasil Tanah”. Of course you will need to go to the office in the districts where you think that the judgment debtor has property. For you to conduct a land property search it will cost you about RM20.

If the result for the search is positive then you will then need to request for an abstract of that particular land title of the judgment debtor from the Land Office. After you have obtained the information from the abstract of the land title, you would then need to justify whether or not it is worth it to proceed with the prohibitory claim. And you can do this based on the abstract of the land title, the valuation report or even the credit checking where the land is charged by the bank or any other financial institution.

The court will then decide whether or not they will issue an ex parte a prohibitory order upon the production of the abstract of the title or other forms of sufficient evidence of the title that may include interests of the judgment debtor.

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