Legal Definitions - action for poinding

An action for poinding is a specific legal procedure in Scots law that allows a creditor to seize and sell a debtor's movable property in order to recover an unpaid debt. It is a form of enforcement, known as 'diligence,' typically initiated after a creditor has obtained a court order (a 'decree') confirming the debt. The purpose is to ensure that a creditor can get paid when a debtor has failed to meet their financial obligations voluntarily.

• Example 1: Business Debt Recovery

  Imagine "Tech Solutions Ltd." owes £15,000 to "Office Supplies Co." for a large order of computers and printers. Despite repeated demands and a court judgment confirming the debt, Tech Solutions Ltd. has not paid. Office Supplies Co. could initiate an action for poinding to have some of Tech Solutions Ltd.'s movable assets, such as their office furniture, company vehicles, or other non-essential equipment, legally seized. These items would then be sold, and the proceeds used to satisfy the £15,000 debt owed to Office Supplies Co.

• Example 2: Unpaid Rent

  Consider a situation where Ms. Evans, a tenant, has accumulated £3,000 in unpaid rent to her landlord, Mr. Davies. Mr. Davies has gone through the necessary legal steps and obtained a court order for the outstanding amount. If Ms. Evans still fails to pay, Mr. Davies could pursue an action for poinding. This would allow for the seizure and sale of some of Ms. Evans's movable possessions, such as valuable electronics or non-essential household items, to recover the overdue rent.

• Example 3: Defaulted Personal Loan

  Suppose Mr. Henderson defaulted on an unsecured personal loan of £7,000 from "Community Bank." After exhausting other collection methods, Community Bank obtained a court decree for the full amount. To recover the debt, Community Bank could initiate an action for poinding. This legal process would enable them to seize and sell some of Mr. Henderson's movable assets, such as a second car, valuable artwork, or high-end tools, to repay the outstanding loan amount.