Court annulls €1.6 million garnishee order

A garnishee order in the sum of €1,634,459.40 issued against a company by the VAT Department has been annulled by the Courts.

The Courts dismissed the department's claim for the payment of over €1.6 million after it found it had not served its request in accordance with the law.

The case against the VAT commissioner was filed by Medairco Ltd and Anthony Migneco.

In their application, the company and Mr Migneco said the department claimed that the sum was due in terms of an executive title which had the same effect as a judgment issued against them.

This title had been obtained when the department had issued a judicial letter against the company and Mr Migneco following previous notices requesting payment.

But Medairco and Mr Migneco said that neither the notices nor the judicial letter had been properly served upon them.

The notices for payment had been sent on August 24, 2010 to the company and Mr Migneco at an address in Marsa.

But the registered address of the company was in Birkirkara, and Mr Migneco had ceased to be a director of the company in September 2009 when he was perpetually interdicted by a judgment of the Magistrates Court at the request of the VAT Department.

In yesterday's judgment Mr Justice Lino Farrugia Sacco said that matters such as judicial service of notices and letters were a matter of public order and, as such, the law had to be observed correctly.

A notice was validly served on a company when the latter was notified at its registered address or place of business and when the notice was served on a company official or employee.

In this case, the letter had not been served upon the company at its place of business or registered address and Mr Migneco, as a result of his interdiction, could not be validly served with any notice.