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

Motion dismissed because the prior 26.8.2021 court order approving the sale was regular and conclusive, the applicant failed to prove illegality, lack of jurisdiction, breach of natural justice, fraud or bad faith by the liquidator, the tender process and disclosures were adequate and the sale was not shown to be at undervalue; Section 517 was inapplicable as the decision had been judicially approved and injunctive relief to undo a regular court-approved sale would be unjust and an abuse of process.

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 Application / Judgment on Motion Under S517 to Set Aside Liquidator's Sale Following Prior S487(3) Court Approval
Outcome
Motion dismissed
Legal Topics
Liquidator's Powers, Sale of Assets in Liquidation, Related Party Transactions, Judicial Review of Liquidator's Acts, Section 517 Companies Act 2016, Section 487(3) Companies Act 2016
Source Language
Malay/English
Company Law Insolvency Civil Procedure Liquidator's Powers Sale of Assets in Liquidation Related Party Transactions Judicial Review of Liquidator's Acts Section 517 Companies Act 2016 +1 more

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Parties

Classic Maritime Inc

Applicant

Lion Diversified Holdings Berhad (In Liquidation)

1st Respondent

Benapro Sdn Bhd

2nd Respondent

Procedural Posture

Post Companies Winding Up Application / Judgment on Motion Under S517 to Set Aside Liquidator's Sale Following Prior S487(3) Court Approval

Legal Issues

  1. 1 Whether the Court may set aside or reverse a liquidator's sale already approved by a prior court order dated 26.8.2021
  2. 2 Whether the sale of 87.96% equity in BRSB to a related party was at undervalue
  3. 3 Whether any non‑disclosure or conflict of interest vitiated the tender process

Ratio Decidendi

Motion dismissed because the prior 26.8.2021 court order approving the sale was regular and conclusive, the applicant failed to prove illegality, lack of jurisdiction, breach of natural justice, fraud or bad faith by the liquidator, the tender process and disclosures were adequate and the sale was not shown to be at undervalue; Section 517 was inapplicable as the decision had been judicially approved and injunctive relief to undo a regular court-approved sale would be unjust and an abuse of process.

Court Disposition

Motion dismissed

Orders

  • Motion dismissed
  • Costs of RM15,000 awarded to 1st Respondent