Malaysia Case Law: Decisions & Judgments

Topic

Director general of insolvency discretion

Legal area

Court

13 Nov 2024

PEMIUTANG PENGHAKIMAN PUBLIC BANK BERHAD PENGHUTANG PENGHAKIMAN 1. ) MOHD ZAMRY BIN HARON 2. ) Jabatan Insolvensi Malaysia

Citation

JA-29PB-216-05/2024 (Mahkamah Tinggi)
Court

High Court
Case number

JA-29PB-216-05/2024 (Mahkamah Tinggi)

The court found on the evidence that the registered post could legitimately have been received on 26.3.2024 (accounting for a public holiday) so the creditor's Notis 51C filed 16.4.2024 was within the 21-day statutory period and KPI was wrong to reject it as late; however the creditor's originating process did not comply with mandatory Form 98 and sought relief not aligned with the statutory remedy (s.33B(4)), a substantive defect not curable under s.93(3); accordingly the creditor's application (annexure 1) is struck out without considering merits, with liberty to file afresh and no order as…
22 Oct 2024

PEMIUTANG PENGHAKIMAN TAIPING RECOVERY SDN BHD PENGHUTANG PENGHAKIMAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) NOR AZAH BINTI AWIN

Citation

WA-29PB-141-02/2023 (Mahkamah Tinggi)
Court

High Court
Case number

WA-29PB-141-02/2023 (Mahkamah Tinggi)

The High Court held that the DGI's decision to allow discharge was unsafe and unjust because the bankrupt remained registered owner of valuable assets used commercially, the DGI's reports lacked proper and complete investigation, and the DGI could have protected creditors by conditioning any discharge or facilitating sale; accordingly the court upheld the SAR order prohibiting the DGI from issuing a certificate of discharge under s33B(4) to protect creditors and commercial morality.
21 Oct 2024

PEMIUTANG PENGHAKIMAN 1. ) CHAN CHEE CHIU 2. ) CHAN KENG SENG, HUBERT PENGHUTANG PENGHAKIMAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) DR. MUBARAK CHAN CHIN CHEUNG

Citation

WA-29PB-359-03/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-29PB-359-03/2024 (Mahkamah Tinggi)

The appeal was dismissed because the DGI's decision to discharge the Judgment Debtor, without accounting for significant existing and anticipated dividends and outstanding creditor claims, would prejudice creditors and amount to an abuse of the discharge power; under section 33B(4) the appropriate and only available remedy is to suspend issuance of the discharge certificate for two years, which the Registrar's order did and which the High Court upheld.
4 Jun 2024

PEMIUTANG PENGHAKIMAN LEE TAT LEE HARDWARE SDN. BHD. PENGHUTANG PENGHAKIMAN LING HUA LIAN

Citation

JA-29PB-835-12/2023 (Mahkamah Tinggi)
Court

High Court
Case number

JA-29PB-835-12/2023 (Mahkamah Tinggi)

Preliminary objections by the creditor were dismissed: KPI's affidavit was timely under the Insolvency Rules, defects in the creditor's application were curable under s.131, and the DGI lawfully exercised discretion under amended s.33C to permit automatic discharge after considering relevant factors and payments; the court will not interfere absent evidence of abuse of discretion, therefore the creditor's application to suspend discharge is dismissed and no costs were ordered.
15 Jan 2024

PEMIUTANG PENGHAKIMAN PUBLIC BANK BERHAD PENGHUTANG PENGHAKIMAN MUZAFRINA BINTI SAGI RAHMAD

Citation

JA-29PB-508-07/2023 (Mahkamah Tinggi)
Court

High Court
Case number

JA-29PB-508-07/2023 (Mahkamah Tinggi)

KPI did not properly administer the bankrupt's estate nor demonstrate compliance with statutory and departmental procedures (including tracing the bankrupt and convening the first meeting of creditors or obtaining court extension of time); accordingly KPI's issuance of a notice of intention to discharge under s.33A was an improper exercise of discretion and the court granted an order restraining KPI from issuing a discharge certificate for two years (15.1.2024–14.1.2026).
22 Nov 2023

PEMIUTANG PENGHAKIMAN LINGGI AGRICULTURE SDN BHD PENGHUTANG PENGHAKIMAN CHIN SU HIN

Citation

JA-29PB-395-06/2023 (Mahkamah Tinggi)
Court

High Court
Case number

JA-29PB-395-06/2023 (Mahkamah Tinggi)

Court held Notice 51C was timely because actual delivery per postal tracking was 21.10.2022 and the objection filed 1.11.2022 fell within the 21-day statutory period; the Insolvency (Amendment) 2023 did not apply to this pending proceeding by virtue of s17 and thus s33B(2A) did not bar the objection; DGI is not required to prepare a separate report when issuing a s33A certificate, but in this case the DGI had failed to properly administer the estate (no meetings, no enquiries, no dividends, inadequate steps to locate debtor) and therefore exercised discretion unreasonably; accordingly the cou…

Malaysia Case Law

PEMIUTANG PENGHAKIMAN PUBLIC BANK BERHAD PENGHUTANG PENGHAKIMAN 1. ) MOHD ZAMRY BIN HARON 2. ) Jabatan Insolvensi Malaysia

PEMIUTANG PENGHAKIMAN TAIPING RECOVERY SDN BHD PENGHUTANG PENGHAKIMAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) NOR AZAH BINTI AWIN

PEMIUTANG PENGHAKIMAN 1. ) CHAN CHEE CHIU 2. ) CHAN KENG SENG, HUBERT PENGHUTANG PENGHAKIMAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) DR. MUBARAK CHAN CHIN CHEUNG

PEMIUTANG PENGHAKIMAN LEE TAT LEE HARDWARE SDN. BHD. PENGHUTANG PENGHAKIMAN LING HUA LIAN

PEMIUTANG PENGHAKIMAN PUBLIC BANK BERHAD PENGHUTANG PENGHAKIMAN MUZAFRINA BINTI SAGI RAHMAD

PEMIUTANG PENGHAKIMAN LINGGI AGRICULTURE SDN BHD PENGHUTANG PENGHAKIMAN CHIN SU HIN