1. ) KHOO SIEW KIAT 2. ) GOH HUA YANG EDDIE UNIVERSAL CABLE (M) BERHAD (IN LIQUIDATION) PENCELAH 1. ) OCBC Bank (M) Berhad 2. ) OCBC Al-Amin Bank Berhad 3. ) CIMB Bank Berhad 4. ) Malayan Banking Berhad 5. ) Maybank Islamic Berhad PIHAK TER

1. ) KHOO SIEW KIAT 2. ) GOH HUA YANG EDDIE UNIVERSAL CABLE (M) BERHAD (IN LIQUIDATION) PENCELAH 1. ) OCBC Bank (M) Berhad 2. ) OCBC Al-Amin Bank Berhad 3. ) CIMB Bank Berhad 4. ) Malayan Banking Berhad 5. ) Maybank Islamic Berhad PIHAK TER

Section 31 of the Employment Act 1955 does not apply to the sale of an unencumbered place of employment by a liquidator by private treaty or auction; whether termination and lay-off benefits under employment contracts entered into or continued by a liquidator after commencement of winding up constitute costs of the winding up under s527(1)(a) depends on factual determination by the liquidator: if the business was not continued the costs fall under s527(1)(b); if the business was continued and prior contracts held to continue (notice displaced/waived) the costs fall under s527(1)(a); if new contracts were entered, post-winding-up liabilities are s527(1)(a) while pre-winding-up liabilities...

Citation
WA-28PW-525-09/2024 (Mahkamah Tinggi)
Parties
Joint and Several Liquidator (applicant): Khoo Siew Kiat; Joint and Several Liquidator (applicant): Goh Hua Yang Eddie; Company (in Liquidation) / Subject of Proceedings: Universal Cable (M) Berhad (In Liquidation)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 July 2025
Case Number
WA-28PW-525-09/2024 (Mahkamah Tinggi)
Procedural Posture
Companies Winding Up (post Winding Up) / Decision on Issues of Law (grounds of Judgment)
Outcome
Court answers: (i) s31 EA is not applicable to sale of unencumbered place of employment by a liquidator by private treaty; (ii) second question unnecessary; (iii) whether termination/lay-off benefits are winding up costs under s527(1)(a) depends on liquidator's factual determination with three set possibilities as...
Legal Topics
Priority of Employees' Wages, Section 31 Employment Act 1955, Section 527 Companies Act 2016, Powers of Liquidator to Sell Assets, Sale of Encumbered Vs Unencumbered Property, Termination and Lay Off Benefits
Source Language
Malay/English
Companies Law Employment Law Insolvency Law Statutory Interpretation Priority of Employees' Wages Section 31 Employment Act 1955 Section 527 Companies Act 2016 Powers of Liquidator to Sell Assets +2 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 6 Authorities cited 20 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Khoo Siew Kiat

Joint and Several Liquidator (applicant)

Goh Hua Yang Eddie

Joint and Several Liquidator (applicant)

Universal Cable (M) Berhad (In Liquidation)

Company (in Liquidation) / Subject of Proceedings

Procedural Posture

Companies Winding Up (post Winding Up) / Decision on Issues of Law (grounds of Judgment)

Legal Issues

  1. 1 Whether section 31 of the Employment Act 1955 applies to a sale of an unencumbered place of employment by a liquidator by private treaty
  2. 2 Whether the maximum amount payable under section 31 is limited to four months' wages and whether termination and lay-off benefits and other listed benefits are excluded from that limit
  3. 3 Whether termination and lay-off benefits payable under employment contracts entered by a liquidator after commencement of winding up are costs and expenses of the winding up under section 527(1)(a) of the Companies Act 2016

Ratio Decidendi

Section 31 of the Employment Act 1955 does not apply to the sale of an unencumbered place of employment by a liquidator by private treaty or auction; whether termination and lay-off benefits under employment contracts entered into or continued by a liquidator after commencement of winding up constitute costs of the winding up under s527(1)(a) depends on factual determination by the liquidator: if the business was not continued the costs fall under s527(1)(b); if the business was continued and prior contracts held to continue (notice displaced/waived) the costs fall under s527(1)(a); if new contracts were entered, post-winding-up liabilities are s527(1)(a) while pre-winding-up liabilities...

Court Disposition

Court answers: (i) s31 EA is not applicable to sale of unencumbered place of employment by a liquidator by private treaty; (ii) second question unnecessary; (iii) whether termination/lay-off benefits are winding up costs under s527(1)(a) depends on liquidator's factual determination with three set possibilities as...