1. ) Liputan Canggih Sdn Bhd 2. ) Ascot Heights Sdn Bhd 3. ) LBCN Development Sdn Bhd 4. ) Extrogold Sdn Bhd 5. ) Redztikah Sdn Bhd 6. ) Eureka Fountain Sdn Bhd 7. ) Tulus Kembang Sdn Bhd K&A MANAGEMENT SDN BHD (DALAM PENGGULUNGAN)

1. ) Liputan Canggih Sdn Bhd 2. ) Ascot Heights Sdn Bhd 3. ) LBCN Development Sdn Bhd 4. ) Extrogold Sdn Bhd 5. ) Redztikah Sdn Bhd 6. ) Eureka Fountain Sdn Bhd 7. ) Tulus Kembang Sdn Bhd K&A MANAGEMENT SDN BHD (DALAM PENGGULUNGAN)

The Court of Appeal held that where statutory provisions do not provide a remedy for alleged misconduct (including alleged contempt) by a liquidator, third parties who are not creditors or contributories may seek leave from the winding-up court under the court's inherent jurisdiction; the ex parte leave granted on 12.7.2019 was reinstated because the liquidator had an opportunity to set it aside and no irremediable breach of natural justice was shown, and the intended committal application raised sufficient prima facie issues to satisfy the low threshold of probable success for leave.

Citation
B-02(IM)-1180-09/2020 (Mahkamah Rayuan)
Parties
Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Liputan Canggih Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Ascot Heights Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): LBCN Development Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Extrogold Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Redztikah Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Eureka Fountain Sdn Bhd; Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020): Tulus Kembang Sdn Bhd; Appellant (appeal B 02(im) 1284 09/2020); Respondent (appeal B 02(im) 1180 09/2020): K & A Management Sdn Bhd (in liquidation); Respondent (appeal B 02(im) 1180 09/2020); Appellant (appeal B 02(im) 1284 09/2020): Chong Chuan Long (liquidator)
Court
IM
Jurisdiction
Malaysia
Judgment Date
12 August 2021
Case Number
B-02(IM)-1180-09/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeals From High Court Winding Up Jurisdiction / Judgment on Appeals (court of Appeal)
Outcome
Appeal B-02(IM)-1180-09/2020 allowed; Appeal B-02(IM)-1284-09/2020 dismissed; ex parte leave order dated 12.7.2019 reinstated
Legal Topics
Locus Standi, Leave to Commence Proceedings Against Liquidator, Natural Justice and Ex Parte Applications, Probable Success Test, Court Control Over Officers
Source Language
Malay/English
Companies Law Civil Procedure Contempt of Court Inherent Jurisdiction Winding Up Law Locus Standi Leave to Commence Proceedings Against Liquidator Natural Justice and Ex Parte Applications +2 more

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Parties

Liputan Canggih Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

Ascot Heights Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

LBCN Development Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

Extrogold Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

Redztikah Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

Eureka Fountain Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

Tulus Kembang Sdn Bhd

Appellant (appeal B 02(im) 1180 09/2020); Respondent (appeal B 02(im) 1284 09/2020)

K & A Management Sdn Bhd (in liquidation)

Appellant (appeal B 02(im) 1284 09/2020); Respondent (appeal B 02(im) 1180 09/2020)

Chong Chuan Long (liquidator)

Respondent (appeal B 02(im) 1180 09/2020); Appellant (appeal B 02(im) 1284 09/2020)

Procedural Posture

Civil Appeals From High Court Winding Up Jurisdiction / Judgment on Appeals (court of Appeal)

Legal Issues

  1. 1 Whether non-creditor/non-contributory plaintiffs have locus standi to seek leave to commence committal proceedings against a liquidator
  2. 2 Whether the court's inherent jurisdiction can be invoked to obtain leave where statute does not provide an express remedy
  3. 3 Whether obtaining ex parte leave without service breached natural justice

Ratio Decidendi

The Court of Appeal held that where statutory provisions do not provide a remedy for alleged misconduct (including alleged contempt) by a liquidator, third parties who are not creditors or contributories may seek leave from the winding-up court under the court's inherent jurisdiction; the ex parte leave granted on 12.7.2019 was reinstated because the liquidator had an opportunity to set it aside and no irremediable breach of natural justice was shown, and the intended committal application raised sufficient prima facie issues to satisfy the low threshold of probable success for leave.

Court Disposition

Appeal B-02(IM)-1180-09/2020 allowed; Appeal B-02(IM)-1284-09/2020 dismissed; ex parte leave order dated 12.7.2019 reinstated

Orders

  • Ex parte order dated 12.7.2019 reinstated
  • Global costs of RM20,000 awarded to the applicants to be paid by the liquidator out of the assets of the company in liquidation