LEE MIN CHOON & CO SHENCOURT PROPERTIES SDN BHD PEMPETISYEN Hew Kiang Hoe [Identity Card No.: 280610085291] & 1 lagi

LEE MIN CHOON & CO SHENCOURT PROPERTIES SDN BHD PEMPETISYEN Hew Kiang Hoe [Identity Card No.: 280610085291] & 1 lagi

The Official Receiver erred in law by treating auditing under s281 as a prerequisite for priority; the Applicant's legal fees, incurred at the liquidator's instruction to recover company property and accepted as reasonable by the liquidator, are costs and expenses of the winding up and are payable with priority...

Source-derived case information.

Citation
WA-28PW-765-12/2024 (Mahkamah Tinggi)
Parties
Petitioner: HEW KIANG HOE; Petitioner: MAY DE SELVA A/P JOHN DE SILVA; Respondent (in Liquidation): SHENCOURT PROPERTIES SDN BHD (IN LIQUIDATION); Applicant: LEE MIN CHOON & CO.; Opposing Unsecured Creditor: Unsecured Creditor (JVC Connection / Devan); Respondent Representative / Liquidator: Official Receiver (Jabatan Insolvensi Malaysia Wilayah Persekutuan Kuala Lumpur)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
9 July 2025
Case Number
WA-28PW-765-12/2024 (Mahkamah Tinggi)
Procedural Posture
Appeal Against Liquidator's Decision Under Section 279 Companies Act / Judgment (commercial Division, High Court of Malaya)
Outcome
Applicant's appeal under Section 279 allowed; Official Receiver's decision set aside.
Legal Topics
Liquidation Expenses Priority, Costs and Remuneration of Liquidator, Winding Up Litigation Costs, Statutory Interpretation of Companies Act S292(1)(a) and S281, Proof of Debt and Procedural Requirements
Company Law Insolvency Law Civil Procedure Liquidation Expenses Priority Costs and Remuneration of Liquidator Winding Up Litigation Costs Statutory Interpretation of Companies Act S292(1)(a) and S281 Proof of Debt and Procedural Requirements

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Parties

HEW KIANG HOE

Petitioner

MAY DE SELVA A/P JOHN DE SILVA

Petitioner

SHENCOURT PROPERTIES SDN BHD (IN LIQUIDATION)

Respondent (in Liquidation)

LEE MIN CHOON & CO.

Applicant

Unsecured Creditor (JVC Connection / Devan)

Opposing Unsecured Creditor

Official Receiver (Jabatan Insolvensi Malaysia Wilayah Persekutuan Kuala Lumpur)

Respondent Representative / Liquidator

Procedural Posture

Appeal Against Liquidator's Decision Under Section 279 Companies Act / Judgment (commercial Division, High Court of Malaya)

Legal Issues

  1. 1 Whether legal fees incurred at the liquidator's instruction to recover company assets are 'costs and expenses of the winding up' and thus priority payments under s292(1)(a) Companies Act 1965
  2. 2 Whether taxation/audit under s281 is a precondition for priority under s292(1)(a)
  3. 3 Whether an application under s279 requires leave under s471 of the Companies Act 2016

Ratio Decidendi

The Official Receiver erred in law by treating auditing under s281 as a prerequisite for priority; the Applicant's legal fees, incurred at the liquidator's instruction to recover company property and accepted as reasonable by the liquidator, are costs and expenses of the winding up and are payable with priority under s292(1)(a); the s279 application was properly brought without leave under s471.

Court Disposition

Applicant's appeal under Section 279 allowed; Official Receiver's decision set aside.

Orders

  • Set aside the decision of the Official Receiver/Liquidator dated 21-6-2024 and 8-11-2024 that treated the Applicant's bills as pari passu with unsecured creditors.
  • Order that the sum of RM1,057,820.00 be paid to Applicant Messrs Lee Min Choon & Co. out of the assets of the Respondent Company as priority payment under Section 292(1)(a) of the Companies Act 1965.