Yap Yeow Han and Abd Azim bin Abd Razak for the Applicant [Messrs Rahmat Lim & Partners] 1. ) Emily Wong and H’ng Yen Jun for the 1 st Respondent [Messrs Dennis Nik & Wong] 2. ) Saheran Suhendran and Rodney Gan for the 2nd Respondent [Messr

Yap Yeow Han and Abd Azim bin Abd Razak for the Applicant [Messrs Rahmat Lim & Partners] 1. ) Emily Wong and H’ng Yen Jun for the 1 st Respondent [Messrs Dennis Nik & Wong] 2. ) Saheran Suhendran and Rodney Gan for the 2nd Respondent [Messr

The Motion was dismissed because the Applicant failed to prove on a balance of probabilities that the liquidator acted fraudulently, in bad faith, or in a manner so unreasonable that no reasonable liquidator would have acted so; the alleged conflict was disclosed, the sale was conducted by public tender and approved by the court (26.8.2021), and the applicant cannot use Section 517 or injunctive relief to reopen a valid prior order absent illegality or lack of jurisdiction. Costs were awarded to respondents.

Citation
WA-28PW-333-11/2021 (Mahkamah Tinggi)
Parties
Applicant: Classic Maritime Inc; 1st Respondent: Lion Diversified Holdings Berhad (In Liquidation); 2nd Respondent: Benapro Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
11 October 2022
Case Number
WA-28PW-333-11/2021 (Mahkamah Tinggi)
Procedural Posture
Post Companies Winding Up (commercial Division) / Hearing on Notice of Motion to Set Aside Liquidator's Disposal Dated 19.11.2021; Interlocutory Injunction in Place Pending Determination
Legal Topics
Liquidator Powers and Duties, Sale of Company Assets, Related Party Transactions and Disclosure, Undervalue/valuation Disputes, Injunctions Against Execution of Orders, Section 517 Companies Act 2016 Appeals
Source Language
Malay/English
Companies Law Insolvency Civil Procedure Liquidator Powers and Duties Sale of Company Assets Related Party Transactions and Disclosure Undervalue/valuation Disputes Injunctions Against Execution of Orders +1 more

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 6 Party arguments 2
Sign in to unlock

Parties

Classic Maritime Inc

Applicant

Lion Diversified Holdings Berhad (In Liquidation)

1st Respondent

Benapro Sdn Bhd

2nd Respondent

Procedural Posture

Post Companies Winding Up (commercial Division) / Hearing on Notice of Motion to Set Aside Liquidator's Disposal Dated 19.11.2021; Interlocutory Injunction in Place Pending Determination

Legal Issues

  1. 1 Whether the court can revisit or set aside a prior disposal order (functus officio and exceptions)
  2. 2 Whether the liquidator acted in breach of duty by selling the 87.96% equity at undervalue or with conflicted interests
  3. 3 Whether conflict of interest was adequately disclosed and whether related‑party sale is prohibited

Ratio Decidendi

The Motion was dismissed because the Applicant failed to prove on a balance of probabilities that the liquidator acted fraudulently, in bad faith, or in a manner so unreasonable that no reasonable liquidator would have acted so; the alleged conflict was disclosed, the sale was conducted by public tender and approved by the court (26.8.2021), and the applicant cannot use Section 517 or injunctive relief to reopen a valid prior order absent illegality or lack of jurisdiction. Costs were awarded to respondents.