What does the Law say about Section 65 Proceedings
Submitted by: SchoemanLaw Inc
by Celesté Snyders |SchoemanLaw Inc
Category: Litigation | Section 65 | Debt Collection
Introduction
In the Magistrates’ Court, Act 32 of 19441 Section 65 proceedings refer to the debt collection process. Section 65 proceedings are an enquiry into the financial position of the judgement debtor.
When is section 65 applicable?
The Magistrates’ Court deals with Section 65 proceedings. The proceedings will only be applicable when there was judgment granted ordering the payment of an amount of money, and the order was not complied with by the judgment debtor.
The Section 65 proceedings
When an order is granted against the judgment debtor, and the debtor does not comply with the court order, the debtor must be summoned to appear in court. This is known as Section 65A (1) notice. The court clerk issues the notice, which will be served upon the judgment debtor.
The judgment creditor must deliver the notice through registered post to the debtor. The letter must set out the judgment and the consequences of a failure to comply with the judgment.
Section 65 proceedings in an enquiry into the financial position of the judgement debtor. The judgment debtor will present oral evidence in court under oath as to their financial position. The judgment creditor will be given an opportunity to cross-examine the judgment debtor.
The court will grant an order on the matter before the court. The orders can include the following:
Issuing of a Warrant of Execution; Emolument attachment order; Garnishee order;
Should the judgment debtor fail to appear in court in terms of Section 65 notice, the court may order that the judgment debtor be arrested.
Conclusion
In essence, Section 65 proceedings are to inquire into the financial position of a judgment debtor where they have not satisfied a judgment for the payment of a sum of money granted against him or her. Every case differs from one another.
Celesté Snyders | SchoemanLaw Inc
Attorney
https://schoemanlaw.co.za/our-services/civil-litigation-and-alternative-dispute-resolution/
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