PEMIUTANG PENGHAKIMAN LONG KEE PILING WORKS SDN. BHD. PENGHUTANG PENGHAKIMAN CHANG KIAN CHIANG

PEMIUTANG PENGHAKIMAN LONG KEE PILING WORKS SDN. BHD. PENGHUTANG PENGHAKIMAN CHANG KIAN CHIANG

The court granted the stay under s.97 because the debtor demonstrated sufficient reason: the High Court originating summons predated the alleged act of bankruptcy, is promptly listed for trial and can be disposed quickly, the debtor would suffer greater prejudice if bankruptcy proceeded, and the creditor would not suffer serious prejudice because alternative execution remedies remain available; costs ordered to follow the originating summons action.

Citation
JA-29NCC-597-09/2023 (Mahkamah Tinggi)
Parties
Judgment Debtor: Chang Kian Chiang; Judgment Creditor: Loke Kee Piling Works Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
30 April 2024
Case Number
JA-29NCC-597-09/2023 (Mahkamah Tinggi)
Procedural Posture
Bankruptcy Petition (insolvency Act 1967) / Hearing of Application to Stay Bankruptcy Proceedings Under Section 97 Pending Disposal of Originating Summons JA 24 NCC 29 11/2023
Outcome
Application for stay of bankruptcy proceedings allowed
Legal Topics
Stay of Proceedings, Res Judicata, Sufficient Reason Test, Originating Summons Vs Writ, Set Off/counterclaim Under S.3 Insolvency Act
Source Language
Malay/English
Bankruptcy Civil Procedure Company Law Stay of Proceedings Res Judicata Sufficient Reason Test Originating Summons Vs Writ Set Off/counterclaim Under S.3 Insolvency Act

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Parties

Chang Kian Chiang

Judgment Debtor

Loke Kee Piling Works Sdn Bhd

Judgment Creditor

Procedural Posture

Bankruptcy Petition (insolvency Act 1967) / Hearing of Application to Stay Bankruptcy Proceedings Under Section 97 Pending Disposal of Originating Summons JA 24 NCC 29 11/2023

Legal Issues

  1. 1 Whether court should grant stay of bankruptcy proceedings under s.97 Insolvency Act 1967
  2. 2 Whether the originating summons filed by the debtor is barred by res judicata
  3. 3 Whether the originating summons is an improper mode for disputes of fact and should be a writ

Ratio Decidendi

The court granted the stay under s.97 because the debtor demonstrated sufficient reason: the High Court originating summons predated the alleged act of bankruptcy, is promptly listed for trial and can be disposed quickly, the debtor would suffer greater prejudice if bankruptcy proceeded, and the creditor would not suffer serious prejudice because alternative execution remedies remain available; costs ordered to follow the originating summons action.

Court Disposition

Application for stay of bankruptcy proceedings allowed

Orders

  • Stay of bankruptcy proceedings under section 97 Insolvency Act 1967 granted pending disposal of Originating Summons JA-24NCC-29-11/2023 in the High Court
  • Costs of this application to be costs in the cause of Originating Summons JA-24NCC-29-11/2023