In 1930, Terrell was appointed to be a puisne judge of the Supreme Court of Malaya. By a letter written on behalf of the Secretary of State for the Colonies, he was informed that his compulsory retirement age as judge was 62. In 1942, Malaya was invaded and occupied by Japan. As a result, the Secretary of State informed Terrell that his service was no longer required, and his appointment was terminated on 7 July 1942, 17 months before his mandatory retirement age.