1. DATO' LER CHENG CHYE 2. LUM TUCK CHEONG 1. WONG CHING YONG 2. MALAYSIA BUILDING SOCIETY BERHAD 3. GRENE RESIDENCIA SDN BHD

1. DATO' LER CHENG CHYE 2. LUM TUCK CHEONG 1. WONG CHING YONG 2. MALAYSIA BUILDING SOCIETY BERHAD 3. GRENE RESIDENCIA SDN BHD

The court held the acts complained of were acts in relation to charged assets and within the scope of receivership and did not amount to carrying on the company's business after commencement of winding up; therefore under s.386(1) no consent of the liquidator or court was required and the Plaintiffs' declarations failed.

Citation
WA-22NCC-457-08/2019 (Mahkamah Tinggi)
Parties
Plaintiff Joint and Several Liquidator for Instant Bonus Development Sdn Bhd (in Liquidation): Dato' Ler Cheng Chye; Plaintiff Joint and Several Liquidator for Instant Bonus Development Sdn Bhd (in Liquidation): Lum Tuck Cheong; 1st Defendant Appointed Receiver and Manager: Wong Ching Yong; 2nd Defendant Chargee / Lender: Malaysia Building Society Berhad; 3rd Defendant Purchaser of Charged Property: Grene Residencia Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
11 September 2020
Case Number
WA-22NCC-457-08/2019 (Mahkamah Tinggi)
Procedural Posture
Commercial / Companies (winding Up) Declaration Claim / Trial Judgment (high Court)
Outcome
Plaintiffs' action dismissed
Legal Topics
Powers of Receiver and Manager, Section 386 Companies Act 2016, Winding Up Commencement, Debenture Enforcement, Consent of Liquidator Vs Court
Source Language
Malay/English
Company Law Insolvency Law Receivership Secured Transactions Agency Law Powers of Receiver and Manager Section 386 Companies Act 2016 Winding Up Commencement +2 more

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Parties

Dato' Ler Cheng Chye

Plaintiff Joint and Several Liquidator for Instant Bonus Development Sdn Bhd (in Liquidation)

Lum Tuck Cheong

Plaintiff Joint and Several Liquidator for Instant Bonus Development Sdn Bhd (in Liquidation)

Wong Ching Yong

1st Defendant Appointed Receiver and Manager

Malaysia Building Society Berhad

2nd Defendant Chargee / Lender

Grene Residencia Sdn Bhd

3rd Defendant Purchaser of Charged Property

Procedural Posture

Commercial / Companies (winding Up) Declaration Claim / Trial Judgment (high Court)

Legal Issues

  1. 1 Whether the receiver and manager continued to carry on the company's business after commencement of winding up
  2. 2 Whether consent of liquidator or court was required for a receiver and manager to continue to act merely as receiver after winding up
  3. 3 Whether specific acts (retention of sale agreements, instructing valuation, entering appearance in litigation, executing power of attorney) amounted to carrying on the company's business

Ratio Decidendi

The court held the acts complained of were acts in relation to charged assets and within the scope of receivership and did not amount to carrying on the company's business after commencement of winding up; therefore under s.386(1) no consent of the liquidator or court was required and the Plaintiffs' declarations failed.

Court Disposition

Plaintiffs' action dismissed

Orders

  • Action dismissed
  • Costs awarded to the 1st Defendant