PEMIUTANG PENGHAKIMAN YAYASAN IHSAN RAKYAT PENGHUTANG PENGHAKIMAN SAMSUDDIN BIN MOHAMAD FAUZI

PEMIUTANG PENGHAKIMAN YAYASAN IHSAN RAKYAT PENGHUTANG PENGHAKIMAN SAMSUDDIN BIN MOHAMAD FAUZI

The court held that a creditor is entitled to reject part payments that do not discharge the debt in full and therefore the judgment creditor was entitled to refuse the RM70,000 payment; the creditor's petition was not rendered ineffective by the rejected part payment and the appeal is dismissed.

Citation
WA-29NCC-474-05/2021 (Mahkamah Tinggi)
Parties
Judgment Debtor: Samsudin bin Mohamad Fauzi; Judgment Creditor: Yayasan Ihsan Rakyat
Court
High Court
Jurisdiction
Malaysia
Judgment Date
7 January 2026
Case Number
WA-29NCC-474-05/2021 (Mahkamah Tinggi)
Procedural Posture
Bankruptcy / Appeal (notice of Appeal to Court of Appeal)
Outcome
Appeal dismissed
Legal Topics
Statutory Threshold, Part Payment of Debt, Jurisdiction of Bankruptcy Court, Rejection of Payment, Winding Up
Source Language
Malay/English
Insolvency Law Bankruptcy Company Law Civil Procedure Statutory Threshold Part Payment of Debt Jurisdiction of Bankruptcy Court Rejection of Payment +1 more

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Parties

Samsudin bin Mohamad Fauzi

Judgment Debtor

Yayasan Ihsan Rakyat

Judgment Creditor

Procedural Posture

Bankruptcy / Appeal (notice of Appeal to Court of Appeal)

Legal Issues

  1. 1 Whether a creditor is compelled to accept part payment which reduces the debt below the statutory bankruptcy threshold
  2. 2 Whether acceptance of part payment after presentation of a creditor's petition vitiates the petition or ousts the court's jurisdiction
  3. 3 Whether the same principles apply in winding up proceedings

Ratio Decidendi

The court held that a creditor is entitled to reject part payments that do not discharge the debt in full and therefore the judgment creditor was entitled to refuse the RM70,000 payment; the creditor's petition was not rendered ineffective by the rejected part payment and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal in Encl 95 dismissed with costs of RM3,000.00, subject to allocatur.