KCJ ENGINEERING SDN BHD ZN SOLUTION BUILDERS SDN BHD

KCJ ENGINEERING SDN BHD ZN SOLUTION BUILDERS SDN BHD

KCJ was permitted to intervene but was refused leave to commence the intended suit because the claim is purely monetary and can be adequately dealt with in the liquidation by lodging a proof of debt; granting leave would risk preferential recovery, prejudice other unsecured creditors and contravene the pari passu principle; costs awarded to respondent.

Citation
PA-28PW-6-01/2022 (Mahkamah Tinggi)
Parties
Petitioner: EFRA MARKETING SDN BHD; Respondent: ZN SOLUTION BUILDERS SDN BHD; Proposed Intervener: KCJ ENGINEERING SDN BHD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
29 August 2023
Case Number
PA-28PW-6-01/2022 (Mahkamah Tinggi)
Procedural Posture
Winding Up Petition (post‑winding Up Application) / Application to Intervene and for Leave to Commence Suit
Outcome
Application to intervene allowed; application for leave to commence suit dismissed.
Legal Topics
Winding Up, Intervention, Leave to Commence Suit Against Company in Liquidation, Proof of Debt, Pari Passu Principle, Assignment Dispute, Retention Monies
Source Language
Malay/English
Company Law Insolvency/bankruptcy Civil Procedure Winding Up Intervention Leave to Commence Suit Against Company in Liquidation Proof of Debt Pari Passu Principle +2 more

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Parties

EFRA MARKETING SDN BHD

Petitioner

ZN SOLUTION BUILDERS SDN BHD

Respondent

KCJ ENGINEERING SDN BHD

Proposed Intervener

Procedural Posture

Winding Up Petition (post‑winding Up Application) / Application to Intervene and for Leave to Commence Suit

Legal Issues

  1. 1 Whether KCJ should be permitted to intervene in the winding up proceedings
  2. 2 Whether KCJ should be granted leave to commence a suit against the wound up company (RCo)
  3. 3 Whether the relief sought by KCJ can be adequately dealt with in the liquidation by proof of debt

Ratio Decidendi

KCJ was permitted to intervene but was refused leave to commence the intended suit because the claim is purely monetary and can be adequately dealt with in the liquidation by lodging a proof of debt; granting leave would risk preferential recovery, prejudice other unsecured creditors and contravene the pari passu principle; costs awarded to respondent.

Court Disposition

Application to intervene allowed; application for leave to commence suit dismissed.

Orders

  • KCJ Engineering Sdn Bhd permitted to intervene in the winding up proceedings
  • KCJ's application for leave to commence the intended suit against ZN Solution Builders Sdn Bhd dismissed