1. ) KNM GROUP BERHAD 2. ) KNM PROCESS SYSTEMS SDN. BHD. PENCELAH 1. ) Hitachi Zosen Corporation [NOD at Encl. 192] 2. ) IPL Middle East DMCC 3. ) Alam Hzem Sdn Bhd [NOD at Encl. 192] 4. ) Cypark Sdn Bhd 5. ) ANN JOO METAL SDN BHD 6. ) ANN

1. ) KNM GROUP BERHAD 2. ) KNM PROCESS SYSTEMS SDN. BHD. PENCELAH 1. ) Hitachi Zosen Corporation [NOD at Encl. 192] 2. ) IPL Middle East DMCC 3. ) Alam Hzem Sdn Bhd [NOD at Encl. 192] 4. ) Cypark Sdn Bhd 5. ) ANN JOO METAL SDN BHD 6. ) ANN

Given the advanced stage of Suit 14, the presence of foreign witnesses who had travelled and the imminent trial dates, the balance of convenience favoured granting limited, time‑bound leave despite the ad‑interim restraining order; leave was therefore granted only to preserve the 3‑day trial (9–11 July 2025) with a direction that FLS file a formal application to regularise leave.

Citation
WA-24NCC-201-04/2024 (Mahkamah Tinggi)
Parties
Applicant: KNM Group Berhad; Applicant / Defendant: KNM Process Systems Sdn Bhd; Proposed Intervener / Plaintiff: FLS Projects (Malaysia) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
9 July 2025
Case Number
WA-24NCC-201-04/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Scheme of Arrangement / Application for Leave Under S.368(1) (oral) During an Ad Interim Restraining Order)
Outcome
Limited leave granted to FLS Projects to proceed with Suit No. WA-27NCC-14-03/2022 for the scheduled trial dates; direction to file formal application.
Legal Topics
Scheme of Arrangement, Restraining Order, Leave to Proceed, Companies Act 2016 S.366 S.368 S.369, Balance of Convenience
Source Language
Malay/English
Company Law Insolvency Civil Procedure Commercial Law Scheme of Arrangement Restraining Order Leave to Proceed Companies Act 2016 S.366 S.368 S.369 +1 more

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Parties

KNM Group Berhad

Applicant

KNM Process Systems Sdn Bhd

Applicant / Defendant

FLS Projects (Malaysia) Sdn Bhd

Proposed Intervener / Plaintiff

Procedural Posture

Originating Summons Scheme of Arrangement / Application for Leave Under S.368(1) (oral) During an Ad Interim Restraining Order)

Legal Issues

  1. 1 Whether leave should be granted to proceed with Suit No. WA-27NCC-14-03/2022 despite an ad-interim restraining order under s.368(1) Companies Act 2016
  2. 2 How to balance the interests of ongoing civil proceedings against the scheme resolution process (balance of convenience)
  3. 3 Whether limited, time-bound leave is appropriate given the advanced stage of trial and presence of foreign witnesses

Ratio Decidendi

Given the advanced stage of Suit 14, the presence of foreign witnesses who had travelled and the imminent trial dates, the balance of convenience favoured granting limited, time‑bound leave despite the ad‑interim restraining order; leave was therefore granted only to preserve the 3‑day trial (9–11 July 2025) with a direction that FLS file a formal application to regularise leave.

Court Disposition

Limited leave granted to FLS Projects to proceed with Suit No. WA-27NCC-14-03/2022 for the scheduled trial dates; direction to file formal application.

Orders

  • Leave granted under the Ad-Interim Restraining Order to allow the trial of Suit 14 to proceed from 9 July 2025 until 11 July 2025.
  • FLS Projects directed to file a formal application to regularise the leave and to crystallise the issues for any further leave or appeal.