WONG WENG FOO & CO. KINOS FOOD INDUSTRIES (M) SDN BHD (IN LIQUIDATION)

WONG WENG FOO & CO. KINOS FOOD INDUSTRIES (M) SDN BHD (IN LIQUIDATION)

Applicant failed to obtain required leave and did not establish cause to remove the liquidator. The liquidator acted bona fide and reasonably in realizing assets; the sale process had creditor approval and was commercially justified in the pandemic context; alleged outsourcing and other misconduct were unproven and, where statutory defaults existed (eg preliminary report), they were technical or practicable matters not warranting removal. Therefore summons is dismissed with costs.

Citation
WA-28PW-458-12/2020 (Mahkamah Tinggi)
Parties
Applicant (creditor): Wong Weng Foo & Co.; Respondent (company): 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
WA-28PW-458-12/2020 (Mahkamah Tinggi)
Procedural Posture
Post Winding Up Summons to Remove Liquidator Under Companies Act 2016 / Hearing and Grounds of Judgment (dismissal)
Outcome
Summons dismissed
Legal Topics
Removal of Liquidator, Breach of Statutory Duties, Leave to Sue Officer of the Court, Asset Realization and Sale Process, Creditor Approval and Disclosure
Source Language
Malay/English
Company Law Insolvency Civil Procedure Removal of Liquidator Breach of Statutory Duties Leave to Sue Officer of the Court Asset Realization and Sale Process Creditor Approval and Disclosure

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Parties

Wong Weng Foo & Co.

Applicant (creditor)

Kinos Food Industries (M) Sdn Bhd (In Liquidation)

Respondent (company)

Mr Ling Sie Kiong

Liquidator

Procedural Posture

Post Winding Up Summons to Remove Liquidator Under Companies Act 2016 / Hearing and Grounds of Judgment (dismissal)

Legal Issues

  1. 1 Whether leave of court was required and obtained to commence proceedings against the liquidator
  2. 2 Whether cause was shown to remove the liquidator for personal unfitness, conflict of interest, misconduct or dereliction of duty
  3. 3 Whether the liquidator improperly outsourced duties or disclosed confidential information

Ratio Decidendi

Applicant failed to obtain required leave and did not establish cause to remove the liquidator. The liquidator acted bona fide and reasonably in realizing assets; the sale process had creditor approval and was commercially justified in the pandemic context; alleged outsourcing and other misconduct were unproven and, where statutory defaults existed (eg preliminary report), they were technical or practicable matters not warranting removal. Therefore summons is dismissed with costs.

Court Disposition

Summons dismissed

Orders

  • Usage/reference to Enclosures 17, 27, 28, 32 and paragraphs 18,20,24-28 of Enclosure 72 expunged from the matter
  • Summons in Enclosure 1 dismissed with costs