Akta Penghutang 1957
Applies to: Federal Act — see s 18 (Application by defendant) · Official text ↗
- Defines key terms such as 'court' (the court where the proceedings began) and 'judgment' (any decree, order or decision for payment of money) (s 2)
- Allows recovery of money by seizing movable or immovable property, with specific exemptions for essentials like clothing and tools (s 3).
- Permits the court to summon a debtor for oral examination regarding their ability to pay and to discover property (s 4).
- Allows the court to order the discharge of a debtor from prison if they are unable to pay (s 5).
- Enables the arrest of a debtor if there is probable reason to believe they will leave the State to avoid payment or examination (s 6).
- Permits the seizure of property before judgment if the defendant is absent, hiding, or removing assets to obstruct justice (s 19).
- Provides for compensation to a defendant if an arrest or attachment was made on insufficient grounds (s 23).
What this law is
The Debtors Act 1957 (Akta Penghutang 1957) is numbered Act 256 in the Laws of Malaysia. Where it applies is set out in section 18 (Application by defendant).
Its long title, as printed in the official text: An Act relating to debtors.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–2)
- Part II — Execution in respect of judgment debts (s 3)
- Part III — Arrest, examination and imprisonment of judgment debtors (ss 4–14)
- Part IV — Arrest before judgment (ss 15–18)
- Part V — Attachment of property before judgment (ss 19–22)
- Part VI — Damages for improper arrest or attachment (s 23)
- Part VII — Repeal (s 24)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Maximum term of imprisonment for default in payment after examination | six weeks | s 4(8) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Arrest or attachment applied for on insufficient grounds, or claim dismissed without sufficient ground | Compensation not exceeding one thousand ringgit | s 23(1) |
Laws cited on this page
| Act 256 | Debtors Act 1957 Akta Penghutang 1957 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 2 | Defines "court" as the court in which the original proceedings were commenced — the High Court, a Sessions Court or a Magistrates' Court — and "judgment" as including any decree, order or decision for the payment of money. |
| s 3 | Allows money judgments to be recovered by execution against property, but protects specific items like wearing apparel, cooking vessels, beds, and tools of trade up to a value of two hundred ringgit from seizure. |
| s 4 | Allows a judgment creditor to summon a debtor for oral examination about their ability to pay; if the debtor defaults on a payment order and fails to show cause, the court may commit them to civil prison for up to six weeks. |
| s 5 | Empowers the court to order the discharge of a debtor from prison if it is satisfied that the debtor is unable to pay the sum recovered against them. |
| s 6 | Allows the court to order the arrest of a debtor if there is probable reason to believe they are likely to leave the State to avoid payment or examination, and may commit them to prison until they furnish security for appearance. |
| s 7 | Permits the court to make interim orders to protect property that appears likely to be available for the discharge of the judgment debt. |
| s 8 | States that an order for payment by instalments does not prevent proceedings in execution unless the court directs otherwise. |
| s 13 | Allows the court to discharge, vary, or suspend any order made under the Act. |
| s 14 | Clarifies that imprisonment under the Act does not satisfy or extinguish the debt, nor does it deprive the creditor of the right to issue execution against the debtor's property. |
| s 19 | Allows the court to order the seizure of a defendant's property before judgment if the defendant is absent, hiding, or removing property to obstruct execution, provided the plaintiff has a good cause of action. |
| s 20 | Allows the court to release seized property and order its return if reasonable cause is shown and appropriate terms are met. |
| s 23 | Allows the court to award compensation to a defendant, not exceeding one thousand ringgit, if an arrest or attachment was applied for on insufficient grounds or the claim was dismissed without sufficient ground. |
Worked examples
Facts. Ahmad, a carpenter, owes a judgment debt. The bailiff comes to execute against his property, which includes his chisels and saw and the family's beds.
The law. Not liable to seizure in execution are the wearing apparel, cooking vessels, beds and bedding of the debtor, his wife and children and the tools of his trade, to the value of two hundred ringgit in all (s 3(1)(a)), and the tools of artisans (s 3(1)(b)).
Outcome. As an artisan's tools, the chisels and saw are protected under s 3(1)(b); the beds and bedding are protected under s 3(1)(a) up to two hundred ringgit in all.
Facts. Siti is ordered to pay a debt in instalments. She fails to pay an instalment and does not appear in court to show cause why she should not be committed to prison. The court finds she had sufficient means to pay.
The law. Section 4(8) allows the court to commit a debtor to civil prison for a term extending to six weeks if no sufficient cause is shown for default. Section 4(9) requires that the debtor had sufficient means to comply with the order.
Outcome. Siti may be committed to civil prison for up to six weeks (s 4(8)).
Facts. Ravi sues Kumar in a Magistrates' Court in Penang. Kumar is absent from the State and his place of abode cannot be discovered. Ravi provides evidence on oath that he has a good cause of action.
The law. Section 19(1) allows the court to order the seizure of the defendant's property if the defendant is absent from the State and their place of abode cannot be discovered, provided there is a good cause of action.
Outcome. The court may order Kumar's property to be seized as a pledge to answer Ravi's demand (s 19(1)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Can my wages be seized to pay a debt?
Generally, wages or salary are protected from execution (s 3(1)(f)). However, if your wages exceed two hundred ringgit a month, the court may authorize execution against the excess amount in a manner prescribed by rules of court (s 3(1)(f)).
What happens if I don't show up for my examination?
If you are duly served and do not appear, the court may order you to be arrested and brought before the court for examination, or make an order against you ex-parte (s 4(5)).
Does going to prison clear my debt?
No, imprisonment under this Act does not satisfy or extinguish any debt (s 14). It also does not deprive the creditor of the right to issue execution against your property (s 14).
Can the court release me from prison if I can't pay?
Yes, if it appears to the satisfaction of the court that you are unable to pay the sum recovered against you, the court may order your discharge upon such terms as it thinks fit (s 5(1)).
Can my house be seized if I owe rent?
While houses and buildings belonging to an agriculturalist and occupied by him are generally protected (s 3(1)(c)), this protection does not apply to judgments for the payment of rent of any such house, building, site, or land (s 3(2)).
What if I think my property was seized wrongly?
If it appears to the court that the arrest or attachment was applied for on insufficient grounds, or if your claim is dismissed without sufficient ground, the court may award you compensation not exceeding one thousand ringgit (s 23(1)).
All questions & answers → · Ask your own →
Sources
Related
Enforcing a judgmentInsolvency Act 1967Small claims (RM5,000 and below)How a civil case runs