Case Study: Recovering RM17 Million from a GLC-Linked Debtor Who Thought They Could Wait Us Out

Key Summary

• Background: Client held a RM17M judgment against a government-linked koperasi. Judgment sat unenforced for 5 years, with only 1 year left before expiry.

• Challenges:

  • Judgment close to expiry.

  • Debtor linked to government, skilled at delay tactics.

  • Failed recovery attempts by previous lawyer, collectors, and political middlemen.

• Action Plan:

  1. Saved the judgment – successfully extended enforcement period despite strong opposition.

  2. Standard enforcement – garnished RM250k, seized assets (minimal recovery).

  3. Pierced resistance – pursued officers via Judgment Debtor Summons, fought stalling tactics.

  4. Breakthrough tip – undisclosed bank accounts revealed → garnished another RM500k.

  5. Innovation – pioneered share seizure of private companies, attaching koperasi’s JV equity.

• Outcome:

  • Full RM17M settlement secured via consent order.

  • Structured repayment with post-dated cheques.

  • Achieved without political interference — purely legal strategy.

• Lessons:

  • Judgment ≠ money until enforced.

  • Persistence and creativity can outmaneuver even entrenched debtors.

  • There is always an enforcement path if you think strategically.

Client Background

In 2017, a seasoned Chinese businessman approached us with a pressing problem. He held a court judgment worth RM17 million (principal + interest) against a koperasi linked to a government entity. While the judgment was a legal win, it had turned into a deadweight — five years had passed, and enforcement had stalled completely.

His former lawyer had stopped at obtaining judgment. No enforcement steps had been taken. With only one year left before the 6-year enforcement limitation expired, the koperasi was clearly playing the clock — ignoring all attempts at resolution, confident the time would run out.

Challenge

• A judgment at risk of expiring

• A government-linked debtor skilled at evasion

• A trail of failed recovery efforts involving debt collectors and political middlemen

• A complex enforcement path few had attempted before
  

Phase 1: Saving the Judgment from Expiry

We immediately filed an application to extend the enforcement period — a discretionary relief courts don’t grant lightly.

• The koperasi's lawyers contested it aggressively, challenging technicalities and procedure.

• After weeks of hearings, we succeeded. ✅ Judgment enforcement period extended.

This was the first key victory. We had time — and we moved fast.

Phase 2: Standard Enforcement Routes

We began immediate asset enforcement:

1. Garnishee Order

   • Seized RM250,000 from their known bank accounts.

2. Writ of Seizure and Sale

   • Executed on their office premises.

   • Yield: ~RM10,000 in old furniture and used electronics.

The koperasi remained unmoved. But we weren’t done.

Phase 3: Piercing the Veil of Obstruction

We launched Judgment Debtor Summons to compel their officers to appear in court.

They dodged service. Filed interlocutory applications just to stall. Months passed. Frustrating — but we stayed the course.

Breakthrough: An Anonymous Tip

One day, an unmarked envelope arrived at our office. Inside: a typed list of previously undisclosed bank accounts belonging to the koperasi.

To this day, we don’t know who sent it — but we didn’t waste time asking.

✅ We garnished another RM500,000.

Still, they refused to settle. Until we escalated to something no one had tried before.

Phase 4: Strategic Innovation — Share Seizure

While reviewing their audited accounts, we discovered the koperasi owned shares in multiple profitable joint-venture private companies.

Seizing private company shares is extremely rare in Malaysia. No precedents. No standard procedure. Even court staff were unfamiliar.

But under the Rules of Court 2012, it was possible.

We filed for a writ of seizure on private company shares, guided the court through the legal process, and successfully attached the koperasi’s equity in multiple ventures.

This struck a nerve.

The koperasi finally realized their most valuable assets were under threat and agreed to enter into a consent order for settlement.

Outcome

After nearly four years of relentless legal pursuit:

✅ Full RM17 million settlement secured ✅ Payment structured via post-dated cheques ✅ No shortcuts, no political strings — just strategic enforcement and legal tenacity

Key Takeaways

• Judgments are not victories unless enforced.

• Persistence, timing, and creativity can break even the most complex debt recovery deadlocks.

• There are always enforcement paths — even when the debtor thinks they've closed every door. AUTHOR PROFILE

  
  

  

  
  

  Rudi Cheu is the principal of Rule & Co. Advocates & Solicitors; a Malaysian law firm focusing on practical and cost-effective solutions for debt recovery and commercial disputes. With nearly a decade of debt recovery experience under his belt; Rudi is passionate about helping businesses navigate debt recovery challenges and shares insights at www.rulecolaw.com/blog and recoverdebt.my

  
  

  He can be reached via Whatsapp: +60102028095 or via email: rudi@rulecolaw.com