ENACTMENT NO. 4 OF 2003 SYARIAH COURT CIVIL PROCEDURE (STATE OF SELANGOR) ENACTMENT 2003
PART XIX
RATEABLE DISTRIBUTION
Section 186. Proceeds of execution of sale to be distributed rateably among judgment creditors.
(1) Subject to subsection (2), where assets are realized by sale or otherwise in execution of an order or judgment and more persons than one have, prior to the realization, attached the property from which such assets have been realized in execution of orders or judgments for the payment of money against the same judgment debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realization, shall be distributed rateably among all such persons:
Provided that—
(a) where the property is sold subject to a charge, the chargee shall not be entitled to share in any surplus arising from the sale;
(b) where any property liable to be sold in execution of an order or judgment is subject to a charge, the Court may, with the consent of the chargee, order that the property be sold free from the charge, giving to the chargee the same right against the proceeds of the sale as he had against the property sold; and
(c) where any immovable property is sold in execution of an order or judgment ordering its sale for the discharge of the encumbrances thereof, the proceeds of sale shall be applied—
(i) firstly, in defraying the expenses of the sale;
(ii) secondly, in discharging the principal money due on the encumbrance;
(iii) thirdly, in discharging the principal money due on subsequent encumbrances, if any; and
(iv) fourthly, rateably among the holders of the orders or judgment for the payment of money against the judgment debtor who have, prior to the sale of that property, applied to the Court which passed the order or judgment and have not obtained satisfaction thereof.
(2) Where all or any of the assets liable to be rateably distributed under this section are paid to a person not entitled to receive the distribution, any person so entitled may sue that person for the refund of the assets.
(3) Nothing in this section shall operate to defeat or postpone any claim which under the provisions of other written law ought to be given priority.