Managing Director of public corporation neglecting to satisfy decree
I won a commercial case against a public corporation and granted a decree which I took to the managing director, It has been five months now since I submitted the decree to him and he has neglected to pay. What can I do to enforce the decree against the corporation?
In 2020 the Parliament amended section 16(4) of the Government Proceedings Act [Cap.5 R.E 2019] by the Written Laws (Miscellaneous Amendments) Act, No.1 of 2020 by adding decree against public corporations, parastatal organisations and public companies to which the Government is the majority shareholders to the list of decrees against the Government. Section 16(3) of the Government Proceedings Act bars issuance of warrant of attachment or garnishee orders against the Government, hence Courts now cannot issue attachment warrants or garnishee orders against public corporations as was the case before.
Now execution of monetary decree against a public corporation is carried out in the same way as execution against a ministry or Government department. After judgment, a decree holder is issued with the decree and a certificate which he is required to take to the Permanent Secretary Treasury (PST) for payment. If the PST refuses or neglects to pay, the decree holder can lodge an application for contempt of Court against the PST. The Court will summon the PST to show cause why he should not be punished for civil contempt of Court. In proving the civil contempt of Court, the decree holder should show that he served the PST with the decree and certificate to satisfy the monetary decree but he has deliberately neglected to pay. Courts have held that the standard of proving a civil contempt of Court is beyond reasonable doubt.