PEMILIK KAPAL ATAU VESSEL "PDZ MEAH" (NO. IMO 9064009) DARI PELABUHAN KLANG (PDZ HOLDINGS BERHAD) DAN BUNKERING (SINGAPORE) PTE LTD

PEMILIK KAPAL ATAU VESSEL "PDZ MEAH" (NO. IMO 9064009) DARI PELABUHAN KLANG (PDZ HOLDINGS BERHAD) DAN BUNKERING (SINGAPORE) PTE LTD

Because the plaintiff issued the writ in rem and obtained a statutory lien before the defendant company was wound up, the plaintiff ranked as a secured creditor entitled to realise the vessel and have the sale proceeds applied to its claim; the consent order was validly entered with representation and did not extinguish the plaintiff's lien; accordingly plaintiff's O.70 r.21 application for determination of priorities and payment out succeeded and defendants' applications to set aside the consent order or for return of proceeds were dismissed.

Citation
WA-27NCC-8-01/2017 (Mahkamah Tinggi)
Parties
Plaintiff: Dan-Bunkering (Singapore) Pte Ltd; 1st Defendant: The Owners of the Ship or Vessel "PDZ MEWAH"; Perkapalan Dai Zhun Sdn Bhd (In Liquidation); 2nd Defendant: Perkapalan Dai Zhun Sdn Bhd (In Liquidation)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
26 April 2021
Case Number
WA-27NCC-8-01/2017 (Mahkamah Tinggi)
Procedural Posture
Admiralty in Rem Action / Post Trial Applications for Determination of Priorities and to Set Aside Consent Order; Judgment on Applications
Outcome
Plaintiff's application for determination of priorities and payment out (encl. 438) allowed; 2nd Defendant's application (encl. 433) dismissed; 1st Defendant's application (encl. 489) dismissed.
Legal Topics
Statutory Lien, Priority of Claims, Sale Proceeds of Ship, Consent Order Set Aside, Stay of Proceedings, Winding Up, Enforcement of Judgment
Source Language
Malay/English
Admiralty/maritime Law Company Law Insolvency Law Civil Procedure Statutory Lien Priority of Claims Sale Proceeds of Ship Consent Order Set Aside +3 more

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Parties

Dan-Bunkering (Singapore) Pte Ltd

Plaintiff

The Owners of the Ship or Vessel "PDZ MEWAH"; Perkapalan Dai Zhun Sdn Bhd (In Liquidation)

1st Defendant

Perkapalan Dai Zhun Sdn Bhd (In Liquidation)

2nd Defendant

Procedural Posture

Admiralty in Rem Action / Post Trial Applications for Determination of Priorities and to Set Aside Consent Order; Judgment on Applications

Legal Issues

  1. 1 Whether the plaintiff as statutory lienholder is entitled to the proceeds of sale despite subsequent change of beneficial ownership and liquidation of the owner
  2. 2 Whether sale proceeds must be distributed by the liquidator under Companies Act 2016 s.527
  3. 3 Whether the consent order authorising sale was void or should be set aside for mistake, lack of consent or other vitiating factor

Ratio Decidendi

Because the plaintiff issued the writ in rem and obtained a statutory lien before the defendant company was wound up, the plaintiff ranked as a secured creditor entitled to realise the vessel and have the sale proceeds applied to its claim; the consent order was validly entered with representation and did not extinguish the plaintiff's lien; accordingly plaintiff's O.70 r.21 application for determination of priorities and payment out succeeded and defendants' applications to set aside the consent order or for return of proceeds were dismissed.

Court Disposition

Plaintiff's application for determination of priorities and payment out (encl. 438) allowed; 2nd Defendant's application (encl. 433) dismissed; 1st Defendant's application (encl. 489) dismissed.

Orders

  • Enclosure 438 allowed with costs to the Plaintiff of RM3,000.00 to be paid by each defendant
  • Enclosure 433 dismissed with costs to the Plaintiff of RM3,000.00 to be paid by each defendant