Recovering Debt from a Non-Paying Client

Serving summons on a non-paying company can become difficult when the premises are closed and no one is available to accept service.

What happened?

A creditor issued summons against a company and gave it to the sheriff for service. When the sheriff arrived at the company’s trading premises and registered office, the premises were closed and no responsible employee was present.

The question

The issue was whether the sheriff could serve the summons by affixing a copy to the outer door or security gate.

The ruling

The High Court clarified that, under the Magistrates’ Court Rules, if no responsible employee is found at a company’s registered office or principal place of business, it may be lawful for the sheriff to affix the process to the main door or security gate.

Key takeaway

Proper service is critical in debt recovery. Where service is valid and there is no response, a creditor may be able to proceed toward default judgment and execution.