1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KANDIAH 1. ) N THANAVATHY A/P RAJAH 2. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KANDIAH 1. ) N THANAVATHY A/P RAJAH 2. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

The Court of Appeal allowed the appeal, set aside the High Court order removing the 2nd appellant as liquidator because the licence renewal was subsequently judicially validated with retrospective effect and the High Court's findings of unreasonable delay were unsupported by contemporaneous documents; additionally the High Court had failed to show that the requisite notice to creditors had been given, a fatal procedural defect. Removal was therefore unjustified and the order was set aside.

Citation
J-01(A)-408-07/2023 (Mahkamah Rayuan)
Parties
1st Appellant: Majidee Park Auto Spares & Services Sdn Bhd (Dalam Likuidasi); 2nd Appellant: Jayapalasingam a/l Kandiah (Pelikuidasi yang dilantik); 1st Respondent: N Thanavathy a/p Rajah; 2nd Respondent: Ketua Pengarah Insolvensi (Director General of Insolvency)
Court
A
Jurisdiction
Malaysia
Judgment Date
29 April 2025
Case Number
J-01(A)-408-07/2023 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (companies/insolvency) / Court of Appeal Judgment on Appeal From Johor Bahru High Court
Outcome
Appeal allowed; High Court order of 26.6.2023 removing 2nd appellant as liquidator set aside
Legal Topics
Removal of Liquidator, Winding Up, Licensing of Insolvency Practitioners, Service of Notice to Creditors, Duties and Promptitude of Liquidator
Source Language
Malay/English
Companies Law Insolvency Law Civil Procedure Removal of Liquidator Winding Up Licensing of Insolvency Practitioners Service of Notice to Creditors Duties and Promptitude of Liquidator

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Parties

Majidee Park Auto Spares & Services Sdn Bhd (Dalam Likuidasi)

1st Appellant

Jayapalasingam a/l Kandiah (Pelikuidasi yang dilantik)

2nd Appellant

N Thanavathy a/p Rajah

1st Respondent

Ketua Pengarah Insolvensi (Director General of Insolvency)

2nd Respondent

Procedural Posture

Civil Appeal (companies/insolvency) / Court of Appeal Judgment on Appeal From Johor Bahru High Court

Legal Issues

  1. 1 Whether non-renewal of liquidator licence justified removal
  2. 2 Whether an application to remove a liquidator must be supported by all creditors and contributories
  3. 3 Whether all creditors/contributories were given notice of the removal application

Ratio Decidendi

The Court of Appeal allowed the appeal, set aside the High Court order removing the 2nd appellant as liquidator because the licence renewal was subsequently judicially validated with retrospective effect and the High Court's findings of unreasonable delay were unsupported by contemporaneous documents; additionally the High Court had failed to show that the requisite notice to creditors had been given, a fatal procedural defect. Removal was therefore unjustified and the order was set aside.

Court Disposition

Appeal allowed; High Court order of 26.6.2023 removing 2nd appellant as liquidator set aside

Orders

  • Order of the Johor Bahru High Court dated 26.6.2023 removing Jayapalasingam a/l Kandiah as liquidator is set aside
  • Costs awarded to the appellants in the sum of RM10,000.00 subject to allocatur