Wong Weng Foo HUP HUAT CONSTRUCTION AND ENGINEERING SDN BHD (In Liquidation) PENCELAH PECCA LEATHER SDN. BHD. PIHAK TERKILAN OOI LEE WEI

Wong Weng Foo HUP HUAT CONSTRUCTION AND ENGINEERING SDN BHD (In Liquidation) PENCELAH PECCA LEATHER SDN. BHD. PIHAK TERKILAN OOI LEE WEI

The Court found the claimed remuneration of RM215,731.20 to be not fair and reasonable because the liquidator failed to discharge the burden to justify time, rates and staff necessity, much of the work was administrative or unnecessary litigation, no proper creditors' meeting had been held and the unilateral withdrawal without Court sanction or creditors' consent breached his fiduciary duties; accordingly the remuneration application was dismissed and costs awarded to the Intervener and Aggrieved Party.

Citation
RA-28PW-1-01/2024 (Mahkamah Tinggi)
Parties
Company (in Liquidation): HUP HUAT CONSTRUCTION AND ENGINEERING SDN BHD (In Liquidation); Liquidator / Applicant: WONG WENG FOO; Intervener: PECCA LEATHER SDN BHD; Aggrieved Party: OOI LEE WEI
Court
High Court
Jurisdiction
Malaysia
Judgment Date
15 May 2025
Case Number
RA-28PW-1-01/2024 (Mahkamah Tinggi)
Procedural Posture
Post Companies (winding Up) Application / Judgment on Liquidator's Remuneration Application
Outcome
Application dismissed
Legal Topics
Liquidator Remuneration, Remuneration Approval, Unilateral Withdrawal of Company Funds, Burden of Proof in Remuneration Assessment, Costs
Source Language
Malay/English
Companies Law Insolvency and Liquidation Civil Procedure Fiduciary Duties Liquidator Remuneration Remuneration Approval Unilateral Withdrawal of Company Funds Burden of Proof in Remuneration Assessment +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

HUP HUAT CONSTRUCTION AND ENGINEERING SDN BHD (In Liquidation)

Company (in Liquidation)

WONG WENG FOO

Liquidator / Applicant

PECCA LEATHER SDN BHD

Intervener

OOI LEE WEI

Aggrieved Party

Procedural Posture

Post Companies (winding Up) Application / Judgment on Liquidator's Remuneration Application

Legal Issues

  1. 1 Whether the liquidator's remuneration of RM215,731.20 is fair and reasonable for work from 23.3.2023 to 4.8.2023
  2. 2 Whether the liquidator may unilaterally withdraw funds as remuneration without court sanction or consent of creditors/contributories
  3. 3 Whether the liquidator discharged the burden to prove time spent, rates, and necessity of staff used

Ratio Decidendi

The Court found the claimed remuneration of RM215,731.20 to be not fair and reasonable because the liquidator failed to discharge the burden to justify time, rates and staff necessity, much of the work was administrative or unnecessary litigation, no proper creditors' meeting had been held and the unilateral withdrawal without Court sanction or creditors' consent breached his fiduciary duties; accordingly the remuneration application was dismissed and costs awarded to the Intervener and Aggrieved Party.

Court Disposition

Application dismissed

Orders

  • The Applicant's Application for Remuneration in Enclosure 1 is dismissed
  • Costs of RM10,000.00 to be paid to the Intervener (Pecca Leather Sdn Bhd)