Dato’ Malik Imtiaz, S Raven, Lim Yvoone, Siti Nur Amirah Aqilah bt Adzman and Muhammad Ahnaf for the Applicant [Messrs S Ravenesan] PENCELAH Shahman Sangaran and Cheryl Leong for the Interveners, SBI Spectrum Sdn Bhd [Messrs Kumar Jaspal Qu

Dato’ Malik Imtiaz, S Raven, Lim Yvoone, Siti Nur Amirah Aqilah bt Adzman and Muhammad Ahnaf for the Applicant [Messrs S Ravenesan] PENCELAH Shahman Sangaran and Cheryl Leong for the Interveners, SBI Spectrum Sdn Bhd [Messrs Kumar Jaspal Qu

The court held s403(b) of the Companies Act 2016 is plain and unambiguous: it excludes companies subject to the Capital Markets and Services Act 2007 (including listed companies) from the judicial management regime; further, secured creditors (here Maybank and See Song & Sons) properly established as secured creditors have a statutory right under s409(b) to oppose and thereby require dismissal of the judicial management application; accordingly the Applicant's OS is dismissed with costs.

Citation
ORIGINATING SUMMONS NO. WA-28JM-7-04/2021 (Mahkamah Tinggi)
Parties
Applicant: Scomi Group Bhd; Secured Creditor / Intervener: Malayan Banking Berhad; Secured Creditor / Intervener: See Song & Sons Sdn Bhd; Intervener / Proposed Secured Creditor: SBI Spectrum Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 October 2021
Case Number
ORIGINATING SUMMONS NO. WA-28JM-7-04/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (judicial Management Application) / Hearing and Judgment (ex Parte OS Heard With Interveners; Final Determination on Preliminary Issues)
Outcome
Originating Summons dismissed
Legal Topics
Judicial Management, Secured Creditor Veto, Applicability of Companies Act 2016 S403(b), Capital Markets and Services Act 2007 Applicability to Listed Companies, Registration of Charges
Source Language
Malay/English
Company Law Insolvency and Corporate Rescue Statutory Interpretation Capital Markets Regulation Judicial Management Secured Creditor Veto Applicability of Companies Act 2016 S403(b) Capital Markets and Services Act 2007 Applicability to Listed Companies +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 15 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Scomi Group Bhd

Applicant

Malayan Banking Berhad

Secured Creditor / Intervener

See Song & Sons Sdn Bhd

Secured Creditor / Intervener

SBI Spectrum Sdn Bhd

Intervener / Proposed Secured Creditor

Procedural Posture

Originating Summons (judicial Management Application) / Hearing and Judgment (ex Parte OS Heard With Interveners; Final Determination on Preliminary Issues)

Legal Issues

  1. 1 Whether a publicly listed company is excluded from applying for judicial management under s403(b) Companies Act 2016
  2. 2 Whether an objection by a secured creditor requires dismissal of a judicial management application under s409(b) Companies Act 2016
  3. 3 Whether the term 'subject to the Capital Markets and Services Act 2007' is to be read narrowly (only companies licensed/regulated under CMSA) or broadly (all listed companies)

Ratio Decidendi

The court held s403(b) of the Companies Act 2016 is plain and unambiguous: it excludes companies subject to the Capital Markets and Services Act 2007 (including listed companies) from the judicial management regime; further, secured creditors (here Maybank and See Song & Sons) properly established as secured creditors have a statutory right under s409(b) to oppose and thereby require dismissal of the judicial management application; accordingly the Applicant's OS is dismissed with costs.

Court Disposition

Originating Summons dismissed

Orders

  • Originating Summons dismissed
  • Applicant to pay costs of RM10,000 to each of the other parties