Malaysia Case Law: Decisions & Judgments

Topic

Priority of creditors

Legal area

Court

26 Jun 2023

N THANAVATHY A/P RAJAH 1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KANDIAH 3. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

Citation

JA-28PW-217-12/2022 (Mahkamah Tinggi)
Court

High Court
Case number

JA-28PW-217-12/2022 (Mahkamah Tinggi)

Application allowed: the liquidator was disqualified by non‑renewal of his licence under s433(1)(a) and, independently, had unreasonably delayed and failed to perform statutory duties with promptitude (failure to convene meetings, excessive repeated document requests, failure to progress liquidation), so removal was warranted and replacement by the Director General of Insolvency ordered under s477(1)(e).
14 Apr 2022

Transpacc Property Management Sdn Bhd 1. ) BADAN PENGURUSAN BERSAMA PANGSAPURI AMAN LARKIN 2. ) CIMB BANK BERHAD

Citation

BA-12ANCvC-110-07/2021 (Mahkamah Tinggi)
Court

High Court
Case number

BA-12ANCvC-110-07/2021 (Mahkamah Tinggi)

The appeal is allowed: funds standing to the credit of the JMB's maintenance account at the date of service of the garnishee may be garnished to satisfy judgment debts for operating/management services because those funds are lawfully applicable to such expenses; funds in the JMB's sinking fund are restricted to capital expenditure under s24(2) and cannot be garnished to satisfy an operating expenditure judgment; garnishee relief is limited to the credit balance existing at the date of service.
10 Feb 2021

Pamela Ephraim for the Applicant Liquidator [Messrs Ephraim & Associates] Zirwatul Hanan binti Abdul Rahman for DBKL [Messrs Azaine & Fakhrul]

Citation

POST WINDING UP APPLICATION NO: WA-28PW-251-07/2020 (Mahkamah Tinggi)
Court

High Court
Case number

POST WINDING UP APPLICATION NO: WA-28PW-251-07/2020 (Mahkamah Tinggi)

The Court held that rates levied under the Local Government Act are not federal tax and therefore do not attract priority under s292(1)(f) of the Companies Act 1965; provable debts in the winding up are limited to liabilities accruing up to the date of the winding up order (10.12.1997); consequently DBKL's proof of debt for RM55,030 for 1999–1.9.2017 is not allowable against the company, and estoppel could not be used to trump statutory provisions.
18 Dec 2019

CIMB Bank Sdn Bhd Idaman Unggul Berhad & 1 Lg

Citation

WA-24NCC-563-10/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-563-10/2019 (Mahkamah Tinggi)

The RM12,000,000.00 transferred from the 2nd Defendant to the 1st Defendant was an unsecured advance/loan so the fixed deposit and its accrued interest are assets of the 1st Defendant; no resulting or constructive trust arises in favour of the 2nd Defendant; the proper recourse for the 2nd Defendant is to lodge a proof of debt and the RM1,000,000.00 interest must be paid to the 1st Defendant (via its Liquidator).
23 Apr 2019

Sabah Development Bank Berhad Petron Oil (M) Sdn Bhd

Citation

02(f)-27-04/2018(S) (Mahkamah Persekutuan)
Court

f
Case number

02(f)-27-04/2018(S) (Mahkamah Persekutuan)

The Federal Court held that the Bank's earlier valid absolute assignment under section 4(3) Civil Law Act 1956 transferred legal title to the SESB contract proceeds and that a third party's claim based on a constructive trust cannot defeat that prior legal assignment in the absence of a pre-existing equity or unconscionable/dishonest conduct by the assignee; therefore Petron had no proprietary interest in the proceeds and the Bank was entitled to them.

Malaysia Case Law

N THANAVATHY A/P RAJAH 1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KANDIAH 3. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

Transpacc Property Management Sdn Bhd 1. ) BADAN PENGURUSAN BERSAMA PANGSAPURI AMAN LARKIN 2. ) CIMB BANK BERHAD

Pamela Ephraim for the Applicant Liquidator [Messrs Ephraim & Associates] Zirwatul Hanan binti Abdul Rahman for DBKL [Messrs Azaine & Fakhrul]

CIMB Bank Sdn Bhd Idaman Unggul Berhad & 1 Lg

Sabah Development Bank Berhad Petron Oil (M) Sdn Bhd