Small claims (RM5,000 and below)

What is the small claims procedure?

The small claims procedure (prosedur tuntutan kecil) is a simplified way of suing in the Magistrates' Court (Mahkamah Majistret). It is set out in Order 93 of the Rules of Court 2012. It is designed so ordinary people can recover small sums without the cost of a lawyer.

• Limit: the amount in dispute, or the value of what is claimed, must not exceed RM5,000 (Order 93 rule 2). If you are owed more, you can give up the excess to come within the limit, or sue in the ordinary way.
• Who can claim: only an individual – not a company – and not someone who is acting as an agent or who has bought (been assigned) someone else's debt (rule 1).
• Who you can sue: any defendant, including a company or business.
• No lawyers: neither side may be represented by a lawyer at the hearing, except where the law requires a defendant to be represented by an authorised person (rule 7). You may still consult a lawyer for advice beforehand.

Typical cases: unpaid personal loans, unreturned deposits, payment for work done, damage to property, and defective goods or services (though the Consumer Claims Tribunal may be cheaper for consumer complaints up to RM50,000).

Step by step

1. Get the form. The claim is made in Form 198, available at any Magistrates' Court registry or through the judiciary's online portal. State the amount and the details of your claim. You must sign (or thumbprint) it yourself.
2. File it. File four copies at the registry and pay the fee. You can also start online by registering on the judiciary portal, then bring the reference slip to the registry counter to pay.
3. Serve it. Deliver a sealed copy of Form 198 to the defendant by hand (personal service) or by prepaid registered post to the defendant's last known address, then file an affidavit of service.
4. Defence. If the defendant disputes the claim, they file a defence (and any counterclaim) in Form 199 within 14 days after service. You can answer a counterclaim in Form 200. If a counterclaim exceeds RM5,000, the case leaves the small claims procedure and continues as an ordinary claim.
5. Hearing. The Magistrate will first try to help both sides settle. If there is no settlement, each side tells their story, brings witnesses and documents, and the Magistrate decides.
6. Judgment. The court serves the judgment on the party against whom it is made by registered post.

Fees

The judiciary's small claims guide (Sabah and Sarawak portal, 2020) lists these fees:

Fees can change – confirm at the registry. Costs awarded to the winner are capped at RM100, and no costs are allowed for advocacy (Order 93 rule 15).

If someone does not turn up

• If the defendant does not file a defence, the court may give judgment for the claimant on the hearing date (Form 201), or adjourn to let the defendant file one.
• If the defendant is absent at the hearing, judgment can be entered against them (Form 202); if the claimant is absent, the claim can be dismissed (Form 203).
• A party who was absent can apply to set the judgment aside using Form 205 within 21 days after the judgment is served (Order 93 rule 10).

Can you appeal?

The judiciary's guide states that the Magistrate's decision in a small claim is final and neither party can appeal to a higher court. If you think something went seriously wrong, get legal advice quickly.

Getting paid: enforcement

If the losing party (the judgment debtor) does not pay after the judgment is served, you can file a notice to show cause in Form 208 and serve it on them. After examining the debtor, the court may (Order 93 rule 16):

• order a writ of seizure and sale of the debtor's property;
• give the debtor time to pay, or allow payment by instalments; or
• order the debtor to be committed to prison (for wilful non-payment).

See also Enforcing a judgment.

Tips

• Send a clear letter of demand first and keep proof of sending.
• Make sure you have the defendant's correct name (and company registration number for a business) and address.
• Bring originals and copies of every document, and arrange for any witness to attend.
• Remember the limitation periods still apply – generally 6 years for debts and contract claims.

Sources

• Rules of Court 2012, Order 93 (Malaysian Bar copy)
• Judiciary of Malaysia (Sabah & Sarawak) – Small Claim guide (fees, procedure)
• Judiciary of Malaysia – Procedures in civil cases
• Low & Partners – FAQ on small claims procedure in Malaysia

Related

How a civil case runsCourts and their powersEnforcing a judgmentTribunals and alternatives to courtConsumer rights