WONG WENG FOO & CO LONDON BISCUITS BERHAD (IN LIQUIDATION) PIHAK TERKILAN Jabatan Insolvensi Malaysia

WONG WENG FOO & CO LONDON BISCUITS BERHAD (IN LIQUIDATION) PIHAK TERKILAN Jabatan Insolvensi Malaysia

The liquidator acted within his statutory powers and commercial judgment to preserve and maximise asset value; retention of employees and payments were justified by the commercial objective of effecting a packaged sale and caused no loss; the Validation Order and relevant rules justify the remuneration and appointments; procedural non-compliance (if any) did not cause substantial injustice and were curable; applicant failed to show cause for removal; therefore PW 282 is dismissed and PW 139 is allowed to appoint Victor Saw as successor liquidator and discharge Lim San Peen.

Citation
WA-28PW-282-10/2021 (Mahkamah Tinggi)
Parties
Liquidator / Applicant (pw 139): Lim San Peen; Applicant / Creditor (pw 282): Wong Weng Foo & Co.; Company / Respondent: London Biscuits Berhad (in Liquidation)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
3 October 2022
Case Number
WA-28PW-282-10/2021 (Mahkamah Tinggi)
Procedural Posture
Companies (winding Up) Applications (removal and Appointment of Liquidator; Ancillary Declaratory Reliefs) / Hearing and Judgment on Interlocutory Summonses (pw 139 and PW 282)
Outcome
PW 282 dismissed with costs; PW 139 allowed; Victor Saw appointed as liquidator; Lim San Peen discharged
Legal Topics
Removal and Appointment of Liquidator, Liquidator's Duties and Powers, Proofs of Debt (pod) and Creditors' Rights, Validation Orders and Sanction of Remuneration, Companies (winding Up) Rules Compliance
Source Language
Malay/English
Company Law Insolvency Law Civil Procedure Removal and Appointment of Liquidator Liquidator's Duties and Powers Proofs of Debt (pod) and Creditors' Rights Validation Orders and Sanction of Remuneration Companies (winding Up) Rules Compliance

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Parties

Lim San Peen

Liquidator / Applicant (pw 139)

Wong Weng Foo & Co.

Applicant / Creditor (pw 282)

London Biscuits Berhad (in Liquidation)

Company / Respondent

Procedural Posture

Companies (winding Up) Applications (removal and Appointment of Liquidator; Ancillary Declaratory Reliefs) / Hearing and Judgment on Interlocutory Summonses (pw 139 and PW 282)

Legal Issues

  1. 1 Whether the liquidator wrongfully and unnecessarily retained employees and made unlawful payments
  2. 2 Whether acceptance of advances and payments (including RM100,000) were unlawful
  3. 3 Whether Rule 160 WUR (separate trading account) was breached

Ratio Decidendi

The liquidator acted within his statutory powers and commercial judgment to preserve and maximise asset value; retention of employees and payments were justified by the commercial objective of effecting a packaged sale and caused no loss; the Validation Order and relevant rules justify the remuneration and appointments; procedural non-compliance (if any) did not cause substantial injustice and were curable; applicant failed to show cause for removal; therefore PW 282 is dismissed and PW 139 is allowed to appoint Victor Saw as successor liquidator and discharge Lim San Peen.

Court Disposition

PW 282 dismissed with costs; PW 139 allowed; Victor Saw appointed as liquidator; Lim San Peen discharged

Orders

  • PW 282 dismissed with costs
  • PW 139 allowed