CAROTECH BERHAD (Penerima dan Pengurus dilantik) (Dalam Likuidasi) 1. ) Kerajaan Malaysia 2. ) Ketua Pengarah Hasil Dalam Negeri

CAROTECH BERHAD (Penerima dan Pengurus dilantik) (Dalam Likuidasi) 1. ) Kerajaan Malaysia 2. ) Ketua Pengarah Hasil Dalam Negeri

Court granted a conditional stay of execution pending the Respondents' appeal on terms that the Respondents must pay interest at 5% per annum on the refunded sum from 2 September 2022 until full payment to protect the Applicant's entitlement and to avoid rendering the appeal nugatory; failure by Respondents to accept the condition causes the conditional stay to lapse and the original judgment to be executable.

Citation
AA-28PW-2-01/2022 (Mahkamah Tinggi)
Parties
PETITIONER: Kawan Dynamic Engineering Sdn Bhd; RESPONDENT: Carotech Berhad; APPLICANT (receiver and Manager Appointed, in Liquidation): Carotech Berhad; RESPONDENT: Government of Malaysia; RESPONDENT: Director General of the Inland Revenue Board of Malaysia
Court
High Court
Jurisdiction
Malaysia
Judgment Date
22 August 2022
Case Number
AA-28PW-2-01/2022 (Mahkamah Tinggi)
Procedural Posture
Companies Winding Up Petition / Application for Stay of Execution Pending Appeal to the Court of Appeal
Outcome
Conditional stay of execution granted on terms
Legal Topics
Stay of Execution, Refund of Real Property Gains Tax (rpgt), Interest on Judgment Debt, Liquidation and Secured Creditors
Source Language
Malay/English
Company Law Tax Law Civil Procedure Insolvency Law Stay of Execution Refund of Real Property Gains Tax (rpgt) Interest on Judgment Debt Liquidation and Secured Creditors

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Parties

Kawan Dynamic Engineering Sdn Bhd

PETITIONER

Carotech Berhad

RESPONDENT

Carotech Berhad

APPLICANT (receiver and Manager Appointed, in Liquidation)

Government of Malaysia

RESPONDENT

Director General of the Inland Revenue Board of Malaysia

RESPONDENT

Procedural Posture

Companies Winding Up Petition / Application for Stay of Execution Pending Appeal to the Court of Appeal

Legal Issues

  1. 1 Whether a stay of execution of a monetary judgment should be granted pending appeal
  2. 2 Whether Respondents should be required to pay interest during a conditional stay
  3. 3 Whether the Applicant's liquidation and appointment of a receiver renders the appeal nugatory if refund is paid

Ratio Decidendi

Court granted a conditional stay of execution pending the Respondents' appeal on terms that the Respondents must pay interest at 5% per annum on the refunded sum from 2 September 2022 until full payment to protect the Applicant's entitlement and to avoid rendering the appeal nugatory; failure by Respondents to accept the condition causes the conditional stay to lapse and the original judgment to be executable.

Court Disposition

Conditional stay of execution granted on terms

Orders

  • Stay of execution of the Refund of RPGT Judgment dated 8 June 2022 subject to the Respondents paying interest at 5% per annum on the sum ordered to be refunded from 2 September 2022 until full settlement
  • If the Respondents do not agree to comply with the condition to pay interest the conditional stay shall lapse automatically without prejudice to the Applicant's right to receive payment in accordance with the Refund of RPGT Judgment