8. Possession to be taken under bill of sale under certain circumstances only
Feedback & supportPersonal chattels included in a bill of sale made or given by way of security for the payment of money by the grantor thereof shall not be liable to be seized or taken possession of by the grantee for any other than the following causes—
personal chattels
“personal chattels” means goods, furniture and other articles capable of complete transfer by delivery, and trade machinery as hereinafter defined, and, when separately assigned or charged, fixtures and growing crops; but does not include chattel interests in real estate, nor fixtures, except trade machinery as herein after defined, when assigned together with any land or building to which they are affixed, nor growing crops when assigned together with any interest in the land on which they grow, nor shares or interests in the stocks, funds or securities of any government, or in the capital or property of incorporated or joint-stock companies, nor things in action;
if the grantor makes default in payment of the sum or sums of money thereby secured at the time therein provided for payment or in the performance of any covenant or agreement contained in the bill of sale and necessary for maintaining the security;
if the grantor becomes a bankrupt or suffers the said chattels or any of them to be distrained for rent, or municipal or town board rates or assessments or otherwise;
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Bills of Sale
if the grantor fraudulently either removes or suffers to be removed from the premises the said chattels or any of them;
if the grantor does not without reasonable excuse upon demand in writing by the grantee produce to him his last receipts for rent and municipal or town board rates and assessments;
if execution has been levied against the goods of the grantor under process of any court.
All personal chattels seized or taken possession of under or by virtue of any bill of sale shall remain on the premises where they were so seized or taken possession of, and shall not be removed or sold until after the expiration of five clear days from the day on which they were so seized or taken possession of.
bill of sale
“bill of sale” includes bills of sale, assignments, transfers, declarations of trust without transfer, inventories of goods with receipt thereto attached, or receipts for purchase money of goods, and other assurances of personal chattels, and also powers of attorney, authorities or licences to take possession of personal chattels as security for any debt, and also any agreement, whether *NOTE—All references to “West Malaysia” shall be construed as reference to “Peninsular Malaysia”– see the Interpretation (Amendment) Act 1997, subsection 5(2). intended or not to be followed by the execution of any other instrument, by which a right in equity to any personal chattels or to any charge or security thereon is conferred, but does not include the following documents— (a) assignments for the benefit of the creditors of the person making or giving the same; (b) ante-nuptial marriage settlements; (c) transfers or assignments of any ship or vessel or share thereof; (d) transfers of goods in the ordinary course of business of any trade or calling; (e) bills of sale of goods in foreign ports or at sea; (f) bills of lading, warehouse-keepers’ certificates, warrants or orders for the delivery of goods, or any other documents used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of such documents to transfer or receive goods thereby represented;
The grantor may within five days from the seizure or taking possession of any chattels on account of any of the abovementioned causes, apply to the High Court, and such Court, if satisfied that by payment of money or otherwise the said cause of seizure no longer exists, may restrain the grantee from removing or selling the said chattels and may make such other order as seems just:
Provided that if the amount, the payment of which is secured by the bill of sale, does not exceed two thousand ringgit such application may be made to the Sessions Court having jurisdiction over the place in which such chattels are situate and such Sessions
Court shall have and may exercise in respect of such application all the powers conferred upon the High Court under this subsection.