Tan Eng Keat and Yap Bing Yew for the Applicant [Messrs Gan, Lee & Tan] Harvinderjit Singh a/l Manjit Singh and Alicia Goh Ai Chen for the Liquidator / Respondent [Messrs Varun & Goh]

Tan Eng Keat and Yap Bing Yew for the Applicant [Messrs Gan, Lee & Tan] Harvinderjit Singh a/l Manjit Singh and Alicia Goh Ai Chen for the Liquidator / Respondent [Messrs Varun & Goh]

Leave to bring proceedings against the liquidator was required and not obtained; on the merits no cause was shown to remove the liquidator because he acted bona fide and reasonably in conducting the asset sale with creditor consultation and majority approval, any alleged procedural or technical statutory breaches did not amount to dereliction of duty or prejudice to creditors; therefore the summons to remove the liquidator is dismissed.

Citation
28PW-458-12/2020 (Mahkamah Tinggi)
Parties
Applicant (creditor): WONG WENG FOO & CO.; Respondent (company in Liquidation): KINOS FOOD INDUSTRIES (M) SDN BHD (IN LIQUIDATION); Liquidator: Mr Ling Sie Kiong
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 June 2022
Case Number
28PW-458-12/2020 (Mahkamah Tinggi)
Procedural Posture
Winding Up Summons for Removal of Liquidator Under Companies Act Provisions / Judgment on Summons (grounds of Judgment)
Outcome
Summons dismissed; costs awarded against Applicant
Legal Topics
Removal of Liquidator, Duties of Liquidator, Leave to Sue Officer of the Court, Disclosure and Creditor Information, Outsourcing of Liquidation Functions, Asset Sale and Valuation, Preliminary Report Under S485
Source Language
Malay/English
Company Law Insolvency and Winding Up Civil Procedure Removal of Liquidator Duties of Liquidator Leave to Sue Officer of the Court Disclosure and Creditor Information Outsourcing of Liquidation Functions +2 more

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Parties

WONG WENG FOO & CO.

Applicant (creditor)

KINOS FOOD INDUSTRIES (M) SDN BHD (IN LIQUIDATION)

Respondent (company in Liquidation)

Mr Ling Sie Kiong

Liquidator

Procedural Posture

Winding Up Summons for Removal of Liquidator Under Companies Act Provisions / Judgment on Summons (grounds of Judgment)

Legal Issues

  1. 1 Whether leave was required and obtained to commence proceedings against the liquidator
  2. 2 Whether cause was shown to remove the liquidator for misconduct or dereliction of duty
  3. 3 Whether the liquidator unlawfully outsourced duties or delegated wholesale to third parties

Ratio Decidendi

Leave to bring proceedings against the liquidator was required and not obtained; on the merits no cause was shown to remove the liquidator because he acted bona fide and reasonably in conducting the asset sale with creditor consultation and majority approval, any alleged procedural or technical statutory breaches did not amount to dereliction of duty or prejudice to creditors; therefore the summons to remove the liquidator is dismissed.

Court Disposition

Summons dismissed; costs awarded against Applicant

Orders

  • The Summons in Enclosure 1 is dismissed with costs
  • Usage and/or reference to Enclosures 17, 27, 28 and 32 and paragraphs 18, 20, 24-28 of Enclosure 72 are expunged from the record of these proceedings