Have you encountered a situation where your debtor owing you an outstanding debt below RM5,000.00 and you are wondering how can our Malaysia law comes to assist you in such situation? Well, you may opt to look for Small Claims Court procedures to assist you in such situation because the Small Claims Court is a legal venue designed to provide a simplified and accessible for resolving minor disputes involving limited monetary claims. It aims to offer an efficient and cost-effective alternative to traditional court proceedings. For the ease of your reading, we have prepared some frequently asked questions for Small Claims Court procedures in Malaysia.

1.  Does the Small Claims Court’s decision binding on the Defendant?

Yes. This is because there will be a court order pronounced by the Magistrate because it is a proceeding in the Magistrates’ Court between an individual Plaintiff and a Defendant.

Besides that, an individual Plaintiff may even enforce the judgment or order in a Small Claims Court in the event that a judgment or order has served to the Defendant and the Defendant refused to comply with the judgment or order.

2. What is the monetary jurisdiction of Small Claims Court?

The amount of claims shall not more than RM5,000.00.

3. What is the procedure to initiate a small claim in a Small Claims Court?

Firstly, you should request a Form 198 from the Subordinate Court registry.

Secondly, you should prepare 4 copies of Form 198 by stating the amount of your claims and the particulars of your claims.

Thirdly, you should submit 4 copies of such Form 198 at the Subordinate Court registry and to serve a sealed Form 198 to the Defendant.

Fourthly, the Defendant who received your sealed Form 198 should file their Defence and Counterclaim (if any) in Form 199 within 14 days from the date of receiving your sealed Form 198.

Fifthly, both parties will be required to present evidence or witness to support their case during the hearing date.

4. Can a Small Claims Court grants costs to me?

Yes, the Court may grant a cost to you of not exceeding RM100.00 subjected to the Court’s discretion.

5. What are the limitations of Small Claims Court procedures?

Both parties are strictly prohibited to be represented by a lawyer except that the Defendant must be represented by a lawyer as required under the law such as a company. Besides that, a Small Claims Court proceedings can only be initiated by an individual Plaintiff and not a company Plaintiff.

6. A judgment or order granted by a Small Claims Court is final?

Yes. A judgment granted by a Small Claims Court is final decision and it is not appealable.

Please refer to Order 93 Rules of Court 2012 for more details.

In conclusion, the Small Claims Court procedure is a simplified and accessible legal venue designed to address minor disputes involving limited monetary claims. While the procedure focuses on efficiency and cost-effectiveness, this legal process allows individuals to seek resolution without the complexities of traditional court proceedings. From filing a claim to formal hearing and judgment, the small claims court aims to provide a straightforward and user-friendly experience.

Should you have further inquiries or require legal assistance, please do not hesitate to contact us at +6011-5657 1350 and reach us via email at lowzhigeneral@gmail.com.

Written By: Yap Jian Zhi, Nicholas

Edited By: Low Chee Hau, Melvin

Note: This article does not constitute legal advice in any case. The facts in each and every case will differ and you can contact us for complimentary legal advice.