ABRIC PROJECT MANAGEMENT SDN BHD V. PALMSHINE PLAZA SDN BHD & ANOR

ABRIC PROJECT MANAGEMENT SDN BHD V. PALMSHINE PLAZA SDN BHD & ANOR

Leave to sue the liquidator was required and the applicant failed to establish a prima facie case of misconduct, bad faith or that the liquidator acted in a manner no reasonable liquidator could; the liquidator acted within statutory powers under s.236(2)(c) with HSBC's consent, defects in security were curable and later regularised, the purchaser paid valuable consideration and was bona fide, the applicant delayed unreasonably, and the balance of justice precluded setting aside the sale; accordingly the motion was dismissed with costs.

Citation
ABRIC PROJECT MANAGEMENT SDN BHD V. PALMSHINE PLAZA SDN BHD & ANOR
Parties
Petitioner (creditor): Abric Project Management Sdn Bhd; 1st Respondent (company in Liquidation): Palmshine Plaza Sdn Bhd; 2nd Respondent (purchaser): Idaman Harmoni Sdn Bhd; Applicant (contributory and Former Director): Ong Weng Seng @ Ong Say Lan
Court
Malaysian court
Jurisdiction
Malaysia
Procedural Posture
Companies (winding Up) Challenge to Liquidator's Sale / Notice of Motion for Leave to Commence Proceedings to Set Aside Sale; Judgment on Motion
Outcome
Enclosure 37 dismissed with costs.
Legal Topics
Liquidator Duties and Powers, Sale of Charged Property, Leave to Sue Court Officers, Companies Act 1965 Provisions, Valuation and Undervalue Sales, Bona Fide Purchaser
Source Language
en
Company Law Insolvency Law Property Law Civil Procedure Liquidator Duties and Powers Sale of Charged Property Leave to Sue Court Officers Companies Act 1965 Provisions +2 more

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Parties

Abric Project Management Sdn Bhd

Petitioner (creditor)

Palmshine Plaza Sdn Bhd

1st Respondent (company in Liquidation)

Idaman Harmoni Sdn Bhd

2nd Respondent (purchaser)

Ong Weng Seng @ Ong Say Lan

Applicant (contributory and Former Director)

Procedural Posture

Companies (winding Up) Challenge to Liquidator's Sale / Notice of Motion for Leave to Commence Proceedings to Set Aside Sale; Judgment on Motion

Legal Issues

  1. 1 Whether liquidator had power to sell property subject to registered charge
  2. 2 Whether court authority under s.236(1)(c) was required for the sale
  3. 3 Whether the sale was at gross undervalue and unreasonable

Ratio Decidendi

Leave to sue the liquidator was required and the applicant failed to establish a prima facie case of misconduct, bad faith or that the liquidator acted in a manner no reasonable liquidator could; the liquidator acted within statutory powers under s.236(2)(c) with HSBC's consent, defects in security were curable and later regularised, the purchaser paid valuable consideration and was bona fide, the applicant delayed unreasonably, and the balance of justice precluded setting aside the sale; accordingly the motion was dismissed with costs.

Court Disposition

Enclosure 37 dismissed with costs.

Orders

  • Enclosure 37 dismissed with costs.