PEMIUTANG PENGHAKIMAN ORIX Rentec (Malaysia) Sdn Bhd PENGHUTANG PENGHAKIMAN Megat Sazari Bin Megat Ibrahim

PEMIUTANG PENGHAKIMAN ORIX Rentec (Malaysia) Sdn Bhd PENGHUTANG PENGHAKIMAN Megat Sazari Bin Megat Ibrahim

The court granted leave because the creditor met the statutory conditions in ss.5(3),(4) and (6) IA and rule 97 IR, the principal debtor had been wound up (thereby exhausting modes of execution), and there is no statutory requirement to file proof of debt or await completion of liquidation before obtaining leave;...

Source-derived case information.

Citation
WA-29NCC-819-07/2022 (Mahkamah Tinggi)
Parties
Judgment Creditor: ORIX RENTEC (MALAYSIA) SDN BHD; Judgment Debtor: MEGAT SALLEHHUDIN BIN MEGAT IBRAHIM; Judgment Debtor: MEGAT SAZARI BIN MEGAT IBRAHIM
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 September 2022
Case Number
WA-29NCC-819-07/2022 (Mahkamah Tinggi)
Procedural Posture
Bankruptcy Leave Application / Application for Leave to Commence Bankruptcy Proceedings (chambers)
Outcome
Applications WA-29NCC-818-07/2022 (Encl.2) and WA-29NCC-819-07/2022 (Encl.2) allowed; leave to commence bankruptcy proceedings granted
Legal Topics
Leave to Commence Bankruptcy, Guarantee and Indemnity, Winding Up, Exhaustion of Execution, Proof of Debt, Inherent Jurisdiction
Insolvency Bankruptcy Companies Law Civil Procedure Leave to Commence Bankruptcy Guarantee and Indemnity Winding Up Exhaustion of Execution +2 more

Source-derived case record

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 4 Authorities cited 10 Party arguments 2
Sign in to unlock

Parties

ORIX RENTEC (MALAYSIA) SDN BHD

Judgment Creditor

MEGAT SALLEHHUDIN BIN MEGAT IBRAHIM

Judgment Debtor

MEGAT SAZARI BIN MEGAT IBRAHIM

Judgment Debtor

Procedural Posture

Bankruptcy Leave Application / Application for Leave to Commence Bankruptcy Proceedings (chambers)

Legal Issues

  1. 1 Whether creditor must exhaust all modes of execution against principal debtor before obtaining leave under ss.5(3),(4),(6) IA
  2. 2 Whether creditor must file proof of debt before obtaining leave
  3. 3 Whether it is oppressive to commence bankruptcy against guarantors before exhausting other modes of execution against the principal debtor

Ratio Decidendi

The court granted leave because the creditor met the statutory conditions in ss.5(3),(4) and (6) IA and rule 97 IR, the principal debtor had been wound up (thereby exhausting modes of execution), and there is no statutory requirement to file proof of debt or await completion of liquidation before obtaining leave; the court will not use inherent jurisdiction to override clear statutory requirements.

Court Disposition

Applications WA-29NCC-818-07/2022 (Encl.2) and WA-29NCC-819-07/2022 (Encl.2) allowed; leave to commence bankruptcy proceedings granted

Orders

  • Applications allowed in paras. (1) and (2)
  • Costs to the Judgment Creditor subject to allocatur