Section 51
Property taken in execution
Where any property of a debtor is taken in execution and before the sale or realization thereof, or the delivery to the execution creditor of any moneys seized or paid in order to avoid sale, notice is served on the Court that a bankruptcy order has been made against the debtor, the Court shall deliver the property or the possession thereof and any such moneys to the Director General of Insolvency, but the costs of and incidental to the execution shall be a first charge on such property or moneys, and the Director General of Insolvency may sell the property or an adequate part thereof for the purpose of satisfying the charge.
Insolvency 73
Duty as to money received on seizure or subsequently thereto
(2)
Where an order of execution has been made in respect of a judgment for a sum exceeding one hundred ringgit the
Court shall hold all moneys coming to its hands under such writ of seizure and sale for fourteen days from the receipt thereof, and if within that time notice is served on it of a bankruptcy petition having been presented against or by the debtor and a bankruptcy order is made against the debtor thereon or on any other petition of which the Court has notice, the Court shall deduct the costs of and incidental to the execution and pay the balance to the Director General of Insolvency, who shall be entitled to retain the same as against the execution creditor.
Execution levied by seizure and sale not invalid by reason of seizure being an act of bankruptcy
(3)
An execution levied by seizure and sale on property of a debtor is not invalid by reason of the seizure being an act of bankruptcy, and a person who purchases the property in good faith under a sale by the Court out of which such execution has issued shall in all cases acquire a good title to it against the
Director General of Insolvency.
(4)
Where the act of bankruptcy upon which a bankruptcy petition is founded is the seizure of any property under a judgment, and the debtor has had a bankruptcy order made against him on such petition, then the costs of the judgment creditor incurred by him in obtaining such judgment during the thirty days next preceding the taking of the property in execution shall be payable out of the assets of the bankrupt in the same manner and in the same order of priority as the costs of the petitioning creditor.
(5)
For the purposes of this section a notice served on the
Registrar or the Magistrate of a Court shall be deemed to have been served on the Court.
Act 360