23 Sept 2022
PEMIUTANG PENGHAKIMAN Lua Ai Siew and Soong Ru Hui (chambering student) for the Judgment Creditors/Respondent [Messrs Soo Thien Ming & Nashrah] PENGHUTANG PENGHAKIMAN Datuk Wong Rhen Yen, Emily Wong and Jasneeta Bhullar for the Judgment Deb
- Citation
- KEBANKRAPAN NO. WA-29NCC-40-01/2021 (Mahkamah Tinggi)
- Court
- High Court
- Case number
- KEBANKRAPAN NO. WA-29NCC-40-01/2021 (Mahkamah Tinggi)
The Court held that under section 5(3) Insolvency Act 1967 leave must be obtained from the Court before a petitioning creditor issues a Bankruptcy Notice against a guarantor; issuing a Bankruptcy Notice without prior leave renders it premature and prejudicial. Although the petitioning creditors had in substance exhausted modes of execution against the principal debtor in winding up, the procedural requirement for prior leave is mandatory such that the Deputy Registrar's allowance of the application to commence bankruptcy was set aside on appeal.