Distress proceedings under Distress Act 1951 in Malaysia

Frequent issue in tenancy is where tenants are in rent arrears or overdue rental and reluctant to vacate the premises. Therefore, it is important that the landlord has the awareness relating to their rights and handling the situation in an effective lawful practice. For this occurrence, the landlord has to decide whether he wants to continue to let the premise to the tenant or to terminate the tenancy. If the landlord does not wish to continue with the tenancy, he may proceed with the termination of the tenancy as stipulated in the agreement. The termination starts with the issuance of termination notice to the tenant. The notice shall notify the tenant that the landlord desires to terminate the tenancy and requires the tenant to surrender the vacant possession of the demised premises within specified time stated in the tenancy agreement. If the tenant refuses to pay the rental arrears although there is a proper termination, the landlord has the right to sue the tenant. However, if the landlord decides to continue the tenancy, then the landlord may apply for the warrant of distress. Distress proceeding is one of the landlord’s remedies for non-payment of rental by tenant whereby this action allows the tenant’s goods to be seized and to be sold for payment of rental arrears.