ARKITEK ZAINUDDIN HARUN SRI ALAM SDN BHD (IN CREDITORS VOLUNTRAY LIQUIDATION)

ARKITEK ZAINUDDIN HARUN SRI ALAM SDN BHD (IN CREDITORS VOLUNTRAY LIQUIDATION)

On the balance of probabilities the Court found cause shown to remove the joint liquidators: they proceeded with a COI meeting on 19.11.2020 in the absence of creditor representatives (demonstrating lack of independence/unbias), failed to comply with parts of the Consent Orders (notably inadequate steps to recover substantial overseas funds and failure to deposit land compensation with designated solicitors), and thus were removed; the Court appointed Ralph Ravin Ratnaswamy as liquidator as he was suitably qualified and supported by majority creditors.

Citation
WA-28PW-342-07/2022 (Mahkamah Tinggi)
Parties
Applicant (pw 94): Abdul Rahman bin Zainal; Applicant (pw 342): Arkitek Zainuddin Harun; Joint Liquidators (respondents): Wan Idris bin Wan Ibrahim & Baltasar bin Maskor; Company (in Creditors' Voluntary Liquidation): Sri Alam Sdn Bhd; Creditor: Messrs Khalek Awang & Associates
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 April 2023
Case Number
WA-28PW-342-07/2022 (Mahkamah Tinggi)
Procedural Posture
Post Winding Up (voluntary Winding Up) / Hearing on Notices of Motion to Remove Liquidators Under Sections 453(2) and 521 of the Companies Act 2016
Outcome
Joint Liquidators Wan Idris bin Wan Ibrahim and Baltasar bin Maskor removed; Mr Ralph Ravin Ratnaswamy appointed liquidator of Sri Alam Sdn Bhd
Legal Topics
Removal of Liquidator, Committee of Inspection, Breach of Court Order, Creditors' Meeting, Proof of Debt, Asset Recovery, Conflict of Interest
Source Language
Malay/English
Companies Law Insolvency Civil Procedure Removal of Liquidator Committee of Inspection Breach of Court Order Creditors' Meeting Proof of Debt +2 more

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Parties

Abdul Rahman bin Zainal

Applicant (pw 94)

Arkitek Zainuddin Harun

Applicant (pw 342)

Wan Idris bin Wan Ibrahim & Baltasar bin Maskor

Joint Liquidators (respondents)

Sri Alam Sdn Bhd

Company (in Creditors' Voluntary Liquidation)

Messrs Khalek Awang & Associates

Creditor

Procedural Posture

Post Winding Up (voluntary Winding Up) / Hearing on Notices of Motion to Remove Liquidators Under Sections 453(2) and 521 of the Companies Act 2016

Legal Issues

  1. 1 Whether cause shown under s 453(2) Companies Act 2016 to remove the joint liquidators
  2. 2 Whether the Joint Liquidators breached Consent Orders and statutory duties (including s 458(1))
  3. 3 Validity of COI meeting held 19.11.2020 in absence of creditor representatives

Ratio Decidendi

On the balance of probabilities the Court found cause shown to remove the joint liquidators: they proceeded with a COI meeting on 19.11.2020 in the absence of creditor representatives (demonstrating lack of independence/unbias), failed to comply with parts of the Consent Orders (notably inadequate steps to recover substantial overseas funds and failure to deposit land compensation with designated solicitors), and thus were removed; the Court appointed Ralph Ravin Ratnaswamy as liquidator as he was suitably qualified and supported by majority creditors.

Court Disposition

Joint Liquidators Wan Idris bin Wan Ibrahim and Baltasar bin Maskor removed; Mr Ralph Ravin Ratnaswamy appointed liquidator of Sri Alam Sdn Bhd

Orders

  • Grant Order In Terms for enclosure 1 of PW 94 prayers 1 and 3
  • Appoint Mr Ralph Ravin Ratnaswamy as liquidator (grant prayer 2 of enclosure 1 of PW 94)