N. CHANTHIRAN A/L NAGAPPAN XXXX

N. CHANTHIRAN A/L NAGAPPAN XXXX

Prior leave of the winding up court is required before commencing proceedings against a court-appointed liquidator; s.486(2)'s phrase 'subject to the control of the Court' implies the need for leave and must be read in the context and purpose of the Companies Act and Winding-Up Rules; accordingly the appeal is allowed.

Citation
02(i)-54-09/2021(Q) (Mahkamah Persekutuan)
Parties
Appellant (liquidator): N. Chanthiran A/L Nagappan; Respondent (contributory): Kao Che Jen
Court
i
Jurisdiction
Malaysia
Judgment Date
17 May 2023
Case Number
02(i)-54-09/2021(Q) (Mahkamah Persekutuan)
Procedural Posture
Civil Appeal / Federal Court Judgment on Leave Requirement to Sue Liquidator
Outcome
Appeal allowed
Legal Topics
Liquidator, Leave to Sue, Winding Up, Statutory Interpretation, Stare Decisis
Source Language
Malay/English
Company Law Insolvency Civil Procedure Liquidator Leave to Sue Winding Up Statutory Interpretation Stare Decisis

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Parties

N. Chanthiran A/L Nagappan

Appellant (liquidator)

Kao Che Jen

Respondent (contributory)

Procedural Posture

Civil Appeal / Federal Court Judgment on Leave Requirement to Sue Liquidator

Legal Issues

  1. 1 Whether prior leave of the winding up court is required to commence proceedings against a court-appointed liquidator under Companies Act 2016 s.486(2)
  2. 2 If leave not required, whether proceedings must be brought in winding up court when orders against liquidator in official capacity are sought

Ratio Decidendi

Prior leave of the winding up court is required before commencing proceedings against a court-appointed liquidator; s.486(2)'s phrase 'subject to the control of the Court' implies the need for leave and must be read in the context and purpose of the Companies Act and Winding-Up Rules; accordingly the appeal is allowed.

Court Disposition

Appeal allowed

Orders

  • Leave required before commencing proceedings against court-appointed liquidator under Companies Act 2016 s.486(2)
  • Costs awarded to appellant RM50,000.00 subject to allocator