ENACTMENT NO. 5 OF 1984 SYARIAH CIVIL PROCEDURE ENACTMENT 1984
PART XXI - RATEABLE DISTRIBUTION
Section 163. Proceeds of execution sale to be distributed rateably among judgment debtors.
(1) Where assets are realised by sale or otherwise in execution of an order or judgment and more persons that one have, prior to the realisation, attached the property from which such assest have been realised 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 the realisation, shall be distributed rateably among all such persons :
Provided as follows -
(a) where any property is sold subject to a mortgage or charge, the mortgage or incumbrancer shall not as such be entitled to share in any surplus arising from such sale ;
(b) where any property liable to be sold in execution of an order or judgment is subject to a mortgage or charge, the Court may, with the consent of the mortgagee or incumbrancer, order that the property be sold free from the mortgage or charge, giving to the mortgagee or incumbrancer the same right against the proceeds of sale as he has against the property sold ;
(c) where any immovable property is sold in execution of an order or judgment ordering its sale for the discharge of an incumbrance thereon, the proceeds of sale shall be applied-
(i) in defraying the espenses of the sale ;
(ii) in discharging the principal money due on the incumbrance ;
(iii) in discharging principal money due on subsequent incumbrance (if any) ;
(iv) ratebly among the holders of orders or judgments for the payment of money against the judgment debtor who have, prior to the sale of the said property, applied to the Court which passed the order or judgment ordering such sale for execution of such orders or judgments and have not obtained satisfaction thereof ; and
(d) where the property from which such assets have been realised has prior to the realisation been attached by the Customary Court, no holder of a decree passed by Court shall be entitled to share in the distribution of such assets unless he shall prior to realisation have given notice in writing to the Customary Court of the orders or judgments.
(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 same, any person so entitled may sue such person to compel him to refund the assets.
(3) Nothing in this section shall operate to defeat or postpone any claim which under the provisions of any written law ought to be paid in priority.