Kwan Will Sen and Pang Huey Lynn for the Liquidator [Messrs Lim Chee Wee Partnership] Tan Eng Kiat and Yap Bing Yew for the Wong Weng Foo & Co. [Messrs Gan, Lee & Tan]

Kwan Will Sen and Pang Huey Lynn for the Liquidator [Messrs Lim Chee Wee Partnership] Tan Eng Kiat and Yap Bing Yew for the Wong Weng Foo & Co. [Messrs Gan, Lee & Tan]

The court found the liquidator acted reasonably and within statutory and court-authorised powers: retention of employees and payments were commercially justified to maximise value and enabled a packaged sale; remuneration and payments were sanctioned by a prior Validation Order and schedule; breaches or delays in procedural rules were either inapplicable (no COI) or directory and curable without substantial injustice; no real conflict or personal unfitness proven to justify removal, and continuity favored appointment of Victor Saw.

Citation
WA-28PW-139-05/2021 & WA-28PW-282-10/2021 (Mahkamah Tinggi)
Parties
Outgoing Liquidator / Applicant (pw 139): Lim San Peen; Applicant / Creditor (pw 282): Wong Weng Foo & Co.; Company (respondent): London Biscuits Berhad (in Liquidation); Proposed / Appointed Liquidator: Victor Saw Seng Kee
Court
High Court
Jurisdiction
Malaysia
Judgment Date
3 October 2022
Case Number
WA-28PW-139-05/2021 & WA-28PW-282-10/2021 (Mahkamah Tinggi)
Procedural Posture
Companies (winding Up) Proceedings / Applications to Remove and Appoint Liquidator Post Winding Up; Heard Together
Outcome
PW 282 dismissed; PW 139 allowed
Legal Topics
Liquidation, Removal of Liquidator, Validation Order, Preferential Claims, Liquidator Remuneration, Breach of Winding Up Rules, Proof of Debt Procedures
Source Language
Malay/English
Corporate Law Insolvency Law Civil Procedure Liquidation Removal of Liquidator Validation Order Preferential Claims Liquidator Remuneration +2 more

Case Brief

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 6 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Lim San Peen

Outgoing Liquidator / Applicant (pw 139)

Wong Weng Foo & Co.

Applicant / Creditor (pw 282)

London Biscuits Berhad (in Liquidation)

Company (respondent)

Victor Saw Seng Kee

Proposed / Appointed Liquidator

Procedural Posture

Companies (winding Up) Proceedings / Applications to Remove and Appoint Liquidator Post Winding Up; Heard Together

Legal Issues

  1. 1 Whether the liquidator wrongfully or unnecessarily retained employees and made unlawful payments
  2. 2 Whether the liquidator made or accepted payments/advances improperly and caused loss
  3. 3 Whether the liquidator breached Rule 160 (separate trading account) and Rule 98 (dealing with proofs)

Ratio Decidendi

The court found the liquidator acted reasonably and within statutory and court-authorised powers: retention of employees and payments were commercially justified to maximise value and enabled a packaged sale; remuneration and payments were sanctioned by a prior Validation Order and schedule; breaches or delays in procedural rules were either inapplicable (no COI) or directory and curable without substantial injustice; no real conflict or personal unfitness proven to justify removal, and continuity favored appointment of Victor Saw.

Court Disposition

PW 282 dismissed; PW 139 allowed

Orders

  • PW 282 dismissed with costs
  • PW 139 allowed; orders in terms of prayers 1, 2 and 3 in Enclosure 1 granted