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The issue of debt has become a common issue all the time and is always discussed. You may be one of those who experience such a situation either as a small trader or freelance worker, or you just want to claim your debt from an acquaintance.
Small to Medium Enterprise (“SME”) is a business with sales turnover of RM50 Million or less or has 200 employees or less. However, not all SMEs are able to generate that much revenue or have many employees and are run by individuals who earn enough income to ensure that the company continues to operate.
Apart from that, there are individuals who face situations where a friend comes to us “Bro, do you have RM4-5 thousand? I am desperate and in need of money. I'll pay it back in 1 month" and other similar kinds of situations.
On the basis of friendship, you will probably give the loan without any doubt and suspicion.
Time elapsed. You haven't heard any news from your friend. Phone, whatsapp are not answered. But social media is always updated, eating at expensive places and probably getting ready to go on vacation.
You are angry and want to claim your debt. At the same time, you are in a dilemma. You are considering appointing a lawyer, but it will involve higher costs.
Therefore, this article is provided for those of you who want to know the ways on how you want to claim a debt or from a client who has not yet settled the outstanding payment.
In fact, in Malaysia, one can start a lawsuit in court to claim the amount of your debt WITHOUT having to appoint a lawyer. This procedure is called ‘Small Claims’ in Small Claims Court and this procedure also provides a cheap, medium and less time-consuming alternative.
The matters that can be claimed in the Small Claims Court include:
1. Get back the debt
2. Claims for goods involving a value not exceeding RM5,000.00
3. Wages for an unpaid service
4. Rent which does not exceed RM5000
5. Claims for damaged goods
6. Unfulfilled performance claims
If you experience any of the situations as mentioned above, you can initiate a claim in the Small Claims Court which will be explained further below.
Small Claims Court
The Small Claims Court was established to provide facilities for the public to make claims in the form of debts, services and others where the total claim is NOT MORE THAN RM5,000.00
The procedure for commencing this small claim is under REGULATION 93 OF THE RULES OF COURT 2012.
Rule 93, Rule 2, Rules of Court 2012 states
"This rule shall apply to claims where the amount in dispute or the value of the subject matter of the claim does not exceed five thousand ringgit".
How To Start a Claim In Small Claims Court?
You can start a claim by filling in FORM 198 which is Writ of Summons and Statement of Claim, and this form is free.
You can get the Form at the Magistrate's Court in your respective area, or you can refer to the Rules of Court 2012.
For example, if you reside in Johor Bahru, then you can go to the Johor Bahru Magistrate's Court at Level 23, 23A Menara Cyberport, Johor Bahru. If you live in Shah Alam, you can go to the Shah Alam Magistrate's Court.
You can read more on the process in greater detail to make a claim in Small Claims Court here.
Conclusion
By now you may have figured out how to make a claim, defend yourself in court, and how to execute a judgment through Small Claims Court procedures.
If you have a problem, and would like further advice, you can contact ASCO Law for appropriate advice. In addition, we also provide services for the preparation of all documents required for debt claims. Hope this article is useful for you!