TAN WEE BOON (NO. KP : XXXXXX-XX-XXXX) 1. GUAN LI SENG (MUAR) TILING SDN BHD (Company No.: 710210-P) 2. TYE YONG FOO (NO. K/P : 580625-04-5393)

TAN WEE BOON (NO. KP : XXXXXX-XX-XXXX) 1. GUAN LI SENG (MUAR) TILING SDN BHD (Company No.: 710210-P) 2. TYE YONG FOO (NO. K/P : 580625-04-5393)

The court found the two matters arise from the same facts and transactions (dispute over ownership and control of 50,000 shares in the company) and that, absent consolidation or preservation, the winding up petition could render the civil suit nugatory; accordingly consolidation was the appropriate, proportionate remedy to preserve the subject matter and secure the ends of justice, and the court ordered the two cases consolidated with costs in the cause.

Citation
JB-28NCC-16-05/2019 (Mahkamah Tinggi)
Parties
Petitioner: Tan Wee Boon; 1st Respondent: Guan Li Seng (Muar) Tiling Sdn Bhd; 2nd Respondent: Tye Yong Foo
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 November 2020
Case Number
JB-28NCC-16-05/2019 (Mahkamah Tinggi)
Procedural Posture
Winding Up (companies Act 2016) / Interlocutory Judgment on Application to Stay and Consolidation Order
Outcome
Both matters consolidated; costs in the cause
Legal Topics
Winding Up, Stay of Proceedings, Consolidation of Actions, Share Ownership Dispute, Trusts of Shares, Nugatory Principle, Order 4 Rules of Court
Source Language
Malay/English
Company Law Civil Procedure Equity and Trusts Winding Up Stay of Proceedings Consolidation of Actions Share Ownership Dispute Trusts of Shares +2 more

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Parties

Tan Wee Boon

Petitioner

Guan Li Seng (Muar) Tiling Sdn Bhd

1st Respondent

Tye Yong Foo

2nd Respondent

Procedural Posture

Winding Up (companies Act 2016) / Interlocutory Judgment on Application to Stay and Consolidation Order

Legal Issues

  1. 1 Whether the civil suit and winding up petition raise common questions of law or fact sufficient for consolidation or stay under Order 4 Rule 7
  2. 2 Whether a stay of the winding up petition is necessary to preserve the subject matter pending disposal of the related civil suit (nugatory principle)
  3. 3 Whether the court should consolidate the two matters or order any other relief under Order 4

Ratio Decidendi

The court found the two matters arise from the same facts and transactions (dispute over ownership and control of 50,000 shares in the company) and that, absent consolidation or preservation, the winding up petition could render the civil suit nugatory; accordingly consolidation was the appropriate, proportionate remedy to preserve the subject matter and secure the ends of justice, and the court ordered the two cases consolidated with costs in the cause.

Court Disposition

Both matters consolidated; costs in the cause

Orders

  • Cases JB-22NCVC-4-01/2020 and JB-28NCC-16-05/2019 are consolidated
  • Cost in the cause