13 Aug 2024
YURI ZAHARIN BIN WAHAB ANN JOO METAL SDN BHD
- Citation
- B-03(IM)(NCC)-3-01/2023 (Mahkamah Rayuan)
- Court
- IM
- Case number
- B-03(IM)(NCC)-3-01/2023 (Mahkamah Rayuan)
The Court of Appeal held that s.5(3)(b) of the Insolvency Act 1967 grants partial protection to all non-social guarantors regardless of whether the underlying liability is a loan or a trade debt; "borrower" in ss.5(5) and (6) should be read purposively as "debtor" (including trade debtors); leave under s.5(4) was required and, absent leave, the bankruptcy notice and creditor petition were properly set aside by the Senior Assistant Registrar and the High Court decision was overturned.