TAN AIK LING CT WORLD CONSTRUCTION SDN. BHD.

TAN AIK LING CT WORLD CONSTRUCTION SDN. BHD.

The court held that s471(1) applies only to proceedings against a wound-up company and cannot regularise proceedings taken by the company itself (the Notice of Appeal); s486(2) may be invoked where the liquidator takes a sufficiently negative stand (refuses or will not proceed) and the court may grant sanction to a third party to conduct proceedings in the name of the company; accordingly the court granted Tan retrospective leave under s486(2) to regularise the Notice of Appeal, and separately granted leave nunc pro tunc under s471(1) to validate the Sessions Court judgment in favour of Seow & Kon, subject to the restraint that no execution against CT World’s assets may be commenced...

Citation
WA-28PW-408-07/2024 (Mahkamah Tinggi)
Parties
Applicant (pw408) / Sole Shareholder of CT World: Tan Aik Ling; Respondent (in Liquidation): CT World Construction Sdn.Bhd; Petitioner (winding Up): RHB Bank Berhad; Applicant (pw440) / Judgment Creditor: Seow Siew Kian; Applicant (pw440) / Judgment Creditor: Kon Yeon Guen; Liquidator / Respondent's Representative: Official Receiver
Court
High Court
Jurisdiction
Malaysia
Judgment Date
18 September 2024
Case Number
WA-28PW-408-07/2024 (Mahkamah Tinggi)
Procedural Posture
Companies (winding Up) / Post Winding Up Applications / Hearing and Determination of Two Cross Post Winding Up Applications (validation of Notice of Appeal and Validation of Sessions Court Judgment)
Outcome
Applications partly allowed: PW408 (Tan) granted under s486(2); PW440 (Seow & Kon) granted nunc pro tunc under s471(1) with conditions
Legal Topics
Winding Up Orders, Leave to Proceed (s471 CA 2016), Liquidator Powers and Sanction (s486 CA 2016), Retrospective Leave / Nunc Pro Tunc, Proof of Debt Process
Source Language
Malay/English
Company Law Insolvency and Liquidation Civil Procedure Winding Up Orders Leave to Proceed (s471 CA 2016) Liquidator Powers and Sanction (s486 CA 2016) Retrospective Leave / Nunc Pro Tunc Proof of Debt Process

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 16 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Tan Aik Ling

Applicant (pw408) / Sole Shareholder of CT World

CT World Construction Sdn.Bhd

Respondent (in Liquidation)

RHB Bank Berhad

Petitioner (winding Up)

Seow Siew Kian

Applicant (pw440) / Judgment Creditor

Kon Yeon Guen

Applicant (pw440) / Judgment Creditor

Official Receiver

Liquidator / Respondent's Representative

Procedural Posture

Companies (winding Up) / Post Winding Up Applications / Hearing and Determination of Two Cross Post Winding Up Applications (validation of Notice of Appeal and Validation of Sessions Court Judgment)

Legal Issues

  1. 1 Whether a Notice of Appeal filed by a company after a winding-up order can be regularised under s471(1) CA 2016 or s486(2) CA 2016
  2. 2 Whether a judgment entered against a company after a winding-up order can be validated nunc pro tunc under s471(1) CA 2016
  3. 3 When the court may exercise control under s486(2) to permit a third party to conduct proceedings in the name of a wound-up company

Ratio Decidendi

The court held that s471(1) applies only to proceedings against a wound-up company and cannot regularise proceedings taken by the company itself (the Notice of Appeal); s486(2) may be invoked where the liquidator takes a sufficiently negative stand (refuses or will not proceed) and the court may grant sanction to a third party to conduct proceedings in the name of the company; accordingly the court granted Tan retrospective leave under s486(2) to regularise the Notice of Appeal, and separately granted leave nunc pro tunc under s471(1) to validate the Sessions Court judgment in favour of Seow & Kon, subject to the restraint that no execution against CT World’s assets may be commenced...

Court Disposition

Applications partly allowed: PW408 (Tan) granted under s486(2); PW440 (Seow & Kon) granted nunc pro tunc under s471(1) with conditions

Orders

  • PW440: the Sessions Court decision dated 21.12.2023 is validated and to be accepted for filing and sealing or alternatively leave to continue proceedings in Petaling Jaya Sessions Court Civil Suit No. BB-A52C-1-01/2022; judgment validated nunc pro tunc; no execution on the validated judgment against CT World’s...