Malaysia Case Law: Decisions & Judgments

Topic

Section 5(3) insolvency act 1967

Legal area

Court

2 Nov 2023

PEMIUTANG PENGHAKIMAN BANK PEMBANGUNAN MALAYSIA BERHAD PENGHUTANG PENGHAKIMAN ANBANATHAN A/L SHANMUGAM

Citation

WA-29NCC-155-02/2022 (Mahkamah Tinggi)
Court

High Court
Case number

WA-29NCC-155-02/2022 (Mahkamah Tinggi)

Applying the Court of Appeal authority in Hong Leong Bank v Ong Moon Huat, the court held that a judgment creditor may obtain leave to commence bankruptcy proceedings either upon issuance of the bankruptcy notice or up to filing of the creditor's petition; consequently the appellant's contention that failure to obtain leave prior to issuance was fatal was rejected and the appeal was dismissed.
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 leave under section 5(3) Insolvency Act 1967 is required before commencing bankruptcy proceedings; however, exercising its discretion the court granted the petitioning creditors' application for leave because the statutory precondition in s5(4) (exhaustion of execution/enforcement) was satisfied in light of the principal debtor having been wound up, and therefore allowed the creditors to proceed despite the earlier issuance of the Bankruptcy Notice.
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)

Section 5(3) of the Insolvency Act 1967 plainly requires a petitioning creditor to obtain leave from the court before issuing a Bankruptcy Notice against a guarantor; because a Bankruptcy Notice invokes bankruptcy proceedings, leave granted only after issuance is retrospective, prejudicial and cannot cure the defect; therefore the BN in this case was prematurely issued and the Judge allowed the appeal concerning leave (Enclosure 46).

Malaysia Case Law

PEMIUTANG PENGHAKIMAN BANK PEMBANGUNAN MALAYSIA BERHAD PENGHUTANG PENGHAKIMAN ANBANATHAN A/L SHANMUGAM

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

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