Kwan Will Sen and Pang Huey Lynn for the Liquidator [Messrs Lim Chee Wee Partnership] Tan Eng Kiat and Yap Bing Yew for the Wong Weng Foo & Co. [Messrs Gan, Lee & Tan]

Kwan Will Sen and Pang Huey Lynn for the Liquidator [Messrs Lim Chee Wee Partnership] Tan Eng Kiat and Yap Bing Yew for the Wong Weng Foo & Co. [Messrs Gan, Lee & Tan]

Court found no cause shown for removal: liquidator acted reasonably and lawfully to preserve and maximise asset value by retaining staff and entering commercial arrangements; payments/advances did not cause loss; remuneration and consultant fees were covered by a prior Validation Order and relevant rules/schedules; breaches alleged (if any) were either misconceived, directory or curable and did not cause substantial injustice; consequently PW 282 dismissed and PW 139 allowing appointment of Victor Saw and discharge of Lim San Peen.

Citation
WA-28PW-139-05/2021 & WA-28PW-282-10/2021 (Mahkamah Tinggi)
Parties
Applicant (liquidator) PW 139: Lim San Peen; Applicant (creditor) PW 282: Wong Weng Foo & Co.; Respondent (company): London Biscuits Berhad (in Liquidation)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
3 October 2022
Case Number
WA-28PW-139-05/2021 & WA-28PW-282-10/2021 (Mahkamah Tinggi)
Procedural Posture
Companies (winding‑up) Applications (removal and Appointment of Liquidator) / Interlocutory Applications Heard Together (pw 139 Appointment; PW 282 Removal/challenges)
Outcome
PW 282 dismissed with costs; PW 139 allowed; Victor Saw appointed as liquidator; Lim San Peen discharged as liquidator
Legal Topics
Removal of Liquidator, Appointment of Liquidator, Validation Orders, Liquidator Remuneration, Proofs of Debt and Creditor Rights, Winding Up Rules Compliance, Conflict of Interest
Source Language
Malay/English
Company Law Insolvency and Liquidation Civil Procedure Removal of Liquidator Appointment of Liquidator Validation Orders Liquidator Remuneration Proofs of Debt and Creditor Rights +2 more

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Parties

Lim San Peen

Applicant (liquidator) PW 139

Wong Weng Foo & Co.

Applicant (creditor) PW 282

London Biscuits Berhad (in Liquidation)

Respondent (company)

Procedural Posture

Companies (winding‑up) Applications (removal and Appointment of Liquidator) / Interlocutory Applications Heard Together (pw 139 Appointment; PW 282 Removal/challenges)

Legal Issues

  1. 1 Whether cause shown to remove court‑appointed liquidator
  2. 2 Whether proposed successor (Victor Saw) is suitable and should be appointed
  3. 3 Whether retention of employees and payments/advances by liquidator were unlawful or caused loss

Ratio Decidendi

Court found no cause shown for removal: liquidator acted reasonably and lawfully to preserve and maximise asset value by retaining staff and entering commercial arrangements; payments/advances did not cause loss; remuneration and consultant fees were covered by a prior Validation Order and relevant rules/schedules; breaches alleged (if any) were either misconceived, directory or curable and did not cause substantial injustice; consequently PW 282 dismissed and PW 139 allowing appointment of Victor Saw and discharge of Lim San Peen.

Court Disposition

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

Orders

  • PW 282 dismissed with costs to the successful party
  • PW 139 allowed and orders in terms of prayers 1, 2 and 3 in Enclosure 1 granted