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Court order to get Redemption Sum from bank?

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asked on Feb 23, 2017 at 18:29
by   david
edited on Feb 27, 2017 at 07:41
 
An Execution Creditor initiated and obtained a 'Court Order of Writ of Seizure and Sale', and 'Notice for Direction of Sale' of an immovable property under tender sale by an Auctioneer at Court bilik lelong. And now there is a successful bidder because of Conditions of Sale is sold subject to encumbrances. The Purchaser needs to know how much the Execution Debtor's Redemption Sum, still owe to the bank.

At present, Execution Creditor helps to get the redemption sum from the bank. Bank refuses to provide due to confidentiality of PDA. Can we apply Court Order to have it?
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answered on Mar 6, 2017 at 17:06
by   Suresh
What has the PDPA to do with this WSS action?
The Creditor have full personal details of the debtor.
Charge & Caveat with the property of the Debtor!
Then it is the bank's business. Nothing to do with PDPA 2013 or its amendments
sale by an Auctioneer at Court bilik lelong.
The court have all the records of this auction and actions. Extract from court records.
There are 2 creditors and can have 1st Charge and 2nd Charge.

WSS  can be successfully carried with returns on clean property/properties.
Sometimes the Creditor ends up with all the legal costs in their pockets.
Poor work done by the creditor and lawyers. However, the lawyers still get paid.
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answered on Mar 6, 2017 at 17:22
by   jeff005
edited Mar 6, 2017 at 17:55
by   jeff005
At start of this Question
An Execution Creditor initiated and obtained a 'Court Order of Writ of Seizure and Sale', and 'Notice for Direction of Sale' of an immovable property

(Legal Note)
WSS is to seize and sell movable property belonging to the other party (Judgment Debtor) to pay the judgment debt.

What is the above discussion all about?
A new scheme or scam from Bill Collectors?

For Immovable Property ( LAND) a PROHIBITORY ORDER is required. Not WSS.

WHAT IS A PROHIBITORY ORDER ? (for LAND  only)
In monetary claims, judgment debtor is the person against whom the judgment or order is made or given. It is generally called the losing party.
The other party is called the judgment creditor where the judgment is obtained for the payment of money by some other person.
In the event that a judgment debtor refuses or neglects to comply with the judgment made by the Court, the judgment creditor can proceed to obtain Prohibitory Order where the properties of the judgment debtor involves land.
A Prohibitory Order is an order obtained from the court prohibiting a judgment debtor from effecting any dealings in relation to his or her landed properties or interest in land held by the him or her.
After obtaining the Prohibitory Order, the judgment creditor can proceed to obtain the Order For Sale to auction the piece of land to recover the same.
Nevertheless, it may not be justified to obtain a Prohibitory Order where the land is charged to a bank or financial institution for a huge loan.

Ref.  http://www.lawyerment.com.my/library/doc/litg/cvmt/po/
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answered on Mar 6, 2017 at 17:51
by   jeff005
edited Mar 6, 2017 at 18:21
by   jeff005
@Suresh 

WSS  can be successfully carried with returns on clean property/properties.  
Wrong interpretation on the above exam question...!! 10 out of 100 marks.  

In short, a Creditor can apply a WSS on racing bicycles and motor bikes(fully paid up) of the debtor.

Note :- LAND can/is be charged to banks for loans too.
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answered on Mar 7, 2017 at 19:20
by   david
@vkpc
You have 2 different answers:
1. On the day of 02.03.2017, at Line 6, and 7, stated "Bank will settle the balance owed with the previous owner."

2. On the day of 06.03.2017, at Line 4 to Line 6, stated "Bank will remove the charge on the property after the new buyer has paid full payment "
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answered on Mar 7, 2017 at 21:28
by   jeff005
edited Mar 7, 2017 at 21:38
by   jeff005
Personal Layman's views / Interpretation

"Bank will settle the balance owed with the previous owner." 
The correct legal procedure.  If there is a "surplus" (after deducting the legal balance of the bank loan), it will go to the petitioning judgement creditor. (if any)

If there is a "short fall", it is then the bank legal perogative to recover the amount from the housing/commercial loan debtor.

"Bank will remove the charge on the property after the new buyer has paid full payment "
The bank have to remove the charge as this is a Public Auction. The successful buyer have to pay in cash of the Auction Value or via another bank loan if required.
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answered on Mar 9, 2017 at 06:02
by   david
@jeff005
If the auction is conducted by the bank, it should likely to be as what you have annotated as above.
But look at the question in the beginning, the conditions of sale is specified that there is "sold subject to encumbrance."
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answered on Mar 9, 2017 at 14:44
by   jeff005
edited Mar 9, 2017 at 15:56
by   jeff005
@ david

You appeared to be a very smart person, you can get answers from several sources, the banks, lawyers, Auctioneer, property agents. I am none of the these listed.

"Can we apply Court Order to have it?" is your question and i believe that it has been answered. If you still not satisfied with the answer, pls go consult a legal solicitor.

"Encumbrances" can come in many forms. It can be unpaid condo maintenances of 10 years, elec and water bills, a dipilated bldg, an empty land under landslide debris or even with uncompleted building construction. The encumbrances Mr. vkpc is referring to, i believe so, is related to the "discharge" and the main encumbrance is Bank caveat and charge which is the other legal "owner". External encumbrances, it can be so many..

An Execution Creditor initiated and obtained a 'Court Order of Writ of Seizure and Sale', and 'Notice for Direction of Sale' of an immovable property under tender sale by an Auctioneer at Court bilik lelong.
As far as I am concerned, personal view, the above purported court order is non-existence as it contravenes Laws of Debts Litigation  and court procedures. Pls post here the Newspaper Advertisement of this Public Action you are referring to.

As such, any further discussion of the above topic and question forwarded by you is purely Academic in nature of which, is not part of my knowledge available. I do not wish to further comment on the above topic. Get Legal Representation is my advice.

Good Luck
bYebYe
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