- Amalin Shahida
One of the most common issues faced by commercial landlords is when a tenant fails to pay rent or refuses to vacate the premises after the tenancy has ended. While this can be frustrating, landlords should be aware that Malaysian law provides several legal remedies to recover outstanding rental and regain possession of the property. However, landlords cannot simply change the locks, disconnect utilities or remove the tenant’s belongings without first obtaining a Court order.
For recovering rental arrears, a landlord may apply for a Writ of Distress under the Distress Act 1951. This allows the Court to authorise the bailiff to seize and auction the tenant’s movable assets located in the premises to recover up to 12 months’ outstanding rent. Alternatively, the landlord may file a Writ of Summons to claim the unpaid rental and any other losses arising from the tenant’s breach of the tenancy agreement.
If the tenant refuses to leave after the tenancy has been terminated, the landlord must commence court proceedings to obtain an order for vacant possession. Under Section 7(2) of the Specific Relief Act 1950, a landlord is not allowed to evict a tenant through self-help measures without a Court order, as doing so may expose the landlord to legal liability.
Not every tenancy dispute has to proceed to a full trial. Where the tenant fails to respond to the court proceedings, the landlord may obtain a Judgment in Default. If the tenant has no genuine defence, the landlord may also apply for Summary Judgment, enabling the Court to determine the claim without a full trial, saving both time and costs.
Landlords should also note that any claim to recover unpaid rental is generally subject to a six-year limitation period under the Limitation Act 1953. Taking prompt legal action can help landlords minimise losses and recover both their outstanding rental and possession of the premises more efficiently.
General Disputes Resolution and Appellate Division
General Disputes Resolution and Appellate Division
General Disputes Resolution and Appellate Division
General Disputes Resolution and Appellate Division
This article is prepared and published by
Messrs. Ben Lee & Sharen
Advocates & Solicitors