PEMIUTANG PENGHAKIMAN ALLIANCE BANK MALAYSIA BERHAD PENGHUTANG PENGHAKIMAN 1. ) TAN ENG KIONG 2. ) Jabatan Insolvensi Malaysia

PEMIUTANG PENGHAKIMAN ALLIANCE BANK MALAYSIA BERHAD PENGHUTANG PENGHAKIMAN 1. ) TAN ENG KIONG 2. ) Jabatan Insolvensi Malaysia

Court concluded KPI failed to demonstrate he considered the statutory factors in s33C(2) and instead relied on the debtor's proposed RM850 monthly payment; that failure amounted to improper exercise of discretion warranting judicial intervention. Court granted the applicant's request to suspend the automatic discharge for two years (14.10.2024 to 13.10.2026) and made no order as to costs.

Citation
JA-29PB-135-03/2024 (Mahkamah Tinggi)
Parties
Applicant / Judgment Creditor: Alliance Islamic Bank Berhad; Respondent 1 / Director General of Insolvency: Ketua Pengarah Insolvensi; Respondent 2 / Judgment Debtor: Tan Eng Kiong
Court
High Court
Jurisdiction
Malaysia
Judgment Date
14 October 2024
Case Number
JA-29PB-135-03/2024 (Mahkamah Tinggi)
Procedural Posture
Post Bankruptcy Application Under the Insolvency Act (s33 C) / Application to Suspend Automatic Discharge (interlocutory)
Outcome
Application by Alliance Islamic Bank to restrain/suspend the Director General from discharging the debtor under s33C allowed; discharge suspended for 2 years from 14.10.2024 to 13.10.2026; no order as to costs.
Legal Topics
Automatic Discharge Under S33 C, DGI Discretion in Determining Contribution, Suspension of Discharge, Requirements for Stated Reasons in Administrative Decisions
Source Language
Malay/English

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Parties

Alliance Islamic Bank Berhad

Applicant / Judgment Creditor

Ketua Pengarah Insolvensi

Respondent 1 / Director General of Insolvency

Tan Eng Kiong

Respondent 2 / Judgment Debtor

Procedural Posture

Post Bankruptcy Application Under the Insolvency Act (s33 C) / Application to Suspend Automatic Discharge (interlocutory)

  1. 1 Whether the Director General of Insolvency (KPI) properly considered the factors in s33C(2) when determining the contribution amount
  2. 2 Whether the Court should interfere with KPI's discretion to order suspension of automatic discharge
  3. 3 Whether the debtor's agreement to pay a proposed sum can substitute for the KPI's own assessment under s33C(2)

Ratio Decidendi

Court concluded KPI failed to demonstrate he considered the statutory factors in s33C(2) and instead relied on the debtor's proposed RM850 monthly payment; that failure amounted to improper exercise of discretion warranting judicial intervention. Court granted the applicant's request to suspend the automatic discharge for two years (14.10.2024 to 13.10.2026) and made no order as to costs.

Court Disposition

Application by Alliance Islamic Bank to restrain/suspend the Director General from discharging the debtor under s33C allowed; discharge suspended for 2 years from 14.10.2024 to 13.10.2026; no order as to costs.

Orders

  • Suspend any automatic discharge under s33C of the Insolvency Act 1967 in respect of Tan Eng Kiong for a period of two years from 14.10.2024 to 13.10.2026 (pursuant to s33C(7)(b))
  • No order as to costs