1. ) KHEE SAN BERHAD 2. ) KHEE SAN FOOD INDUSTRIES SDN BHD 3. ) KHEE SAN MARKETING SDN BHD 4. ) MEGA GLOBAL CONFECTIONARY SDN BHD PENCELAH 1. ) TUNAI IMPIAN ENTERPRISE SDN BHD 2. ) HSBC Bank Malaysia Berhad 3. ) Alliance Bank Malaysia Berha

1. ) KHEE SAN BERHAD 2. ) KHEE SAN FOOD INDUSTRIES SDN BHD 3. ) KHEE SAN MARKETING SDN BHD 4. ) MEGA GLOBAL CONFECTIONARY SDN BHD PENCELAH 1. ) TUNAI IMPIAN ENTERPRISE SDN BHD 2. ) HSBC Bank Malaysia Berhad 3. ) Alliance Bank Malaysia Berha

The court holds that it lacks jurisdiction to vary or set aside the substance of a court-approved scheme under s366 except in cases of fraud or obvious mistakes; s369D does not empower the applicant to set aside the sanction or alter rights; Tunai is estopped for failing to disclose its conditional side-agreement and having voted for Scheme E, therefore the application to set aside Scheme E is dismissed with costs.

Citation
WA-24NCC-1067-12/2022 (Mahkamah Tinggi)
Parties
Applicant: Khee San Berhad; Applicant: Khee San Food Industries Sdn Bhd; Applicant: Khee San Marketing Sdn Bhd; Applicant: Mega Global Confectionary Sdn Bhd; Intervener: Tunai Impian Enterprise Sdn Bhd; Intervener: HSBC Bank Malaysia Berhad; Intervener: Alliance Bank Malaysia Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
20 January 2025
Case Number
WA-24NCC-1067-12/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summons / Post Sanction Application to Set Aside Court Approved Scheme of Arrangement
Outcome
Application dismissed for prayers 2 to 7
Legal Topics
Scheme of Arrangement, Setting Aside Sanction Order, Failure of Consideration, Illegality and Regulatory Contravention, Estoppel and Clean Hands, Section 369 D Companies Act 2016, Moneylenders Regulations 2003
Source Language
Malay/English
Companies Law Civil Procedure Contract Law Equity and Estoppel Regulatory/administrative Law Banking and Finance Scheme of Arrangement Setting Aside Sanction Order +5 more

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Parties

Khee San Berhad

Applicant

Khee San Food Industries Sdn Bhd

Applicant

Khee San Marketing Sdn Bhd

Applicant

Mega Global Confectionary Sdn Bhd

Applicant

Tunai Impian Enterprise Sdn Bhd

Intervener

HSBC Bank Malaysia Berhad

Intervener

Alliance Bank Malaysia Berhad

Intervener

Procedural Posture

Originating Summons / Post Sanction Application to Set Aside Court Approved Scheme of Arrangement

Legal Issues

  1. 1 Whether a court can set aside or alter a court-approved scheme under s366(3) and (4) CA 2016
  2. 2 Whether Tunai can set aside Scheme E on grounds of failure of consideration
  3. 3 Whether Tunai can rely on s369D CA 2016 to set aside or vary the sanction order

Ratio Decidendi

The court holds that it lacks jurisdiction to vary or set aside the substance of a court-approved scheme under s366 except in cases of fraud or obvious mistakes; s369D does not empower the applicant to set aside the sanction or alter rights; Tunai is estopped for failing to disclose its conditional side-agreement and having voted for Scheme E, therefore the application to set aside Scheme E is dismissed with costs.

Court Disposition

Application dismissed for prayers 2 to 7

Orders

  • Tunai's application dismissed with costs
  • Tunai to pay costs of RM 20000 to the applicants subject to allocatur