Malaysia Case Law: Decisions & Judgments

Topic

Sanction of director general of insolvency

Legal area

Court

3 Feb 2026

1. ) ELAINE GAY CHOW SONG 2. ) KWAN HUNG CHEONG 1. ) ZUNG ZANG HOLDINGS SDN BHD 2. ) WONG NYUK CHING 3. ) KWAN PHUI HA 4. ) SEBASTIAN KWAN KUAY TAT 5. ) ZUNG ZANG TRADING SDN. BHD. BUKAN PIHAK-PIHAK Suruhanjaya Syarikat Malaysia (SSM)

Citation

WA-24NCC-237-05/2025 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-237-05/2025 (Mahkamah Tinggi)

Because the 2nd Plaintiff was an undischarged bankrupt whose shares had vested in the Director General of Insolvency under s8(1)(b) and who failed to obtain the prior sanction required by s38(1)(a) of the Insolvency Act 1967, he lacked locus standi and all actions and applications he initiated were incompetent and null; accordingly Enclosure 1 was struck out and Enclosure 184 was dismissed, with liberty to refile but costs awarded against his estate (RM150,000 to 2nd–4th Defendants and RM20,000 to 1st Defendant, payable jointly and severally by the Plaintiffs).
13 Nov 2025

THIYAGARAJAN A/L MPL YEGAPPAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) DATO ROBERT TEO KHENG TUAN 3. ) CIMB BANK BERHAD

Citation

KA-24NCvC-217-07/2025 (Mahkamah Tinggi)
Court

High Court
Case number

KA-24NCvC-217-07/2025 (Mahkamah Tinggi)

The Plaintiff is an undischarged bankrupt who did not obtain the prior sanction of the Director General of Insolvency; the claims advanced relate to preservation and rights over charged land and not to injury to the person; therefore under s.38(1)(a) the Plaintiff is legally incompetent to commence the proceedings and the originating summonses are not maintainable and must be struck out.
16 Jan 2025

HALAL DEVELOPMENT CORPORATION BERHAD AHMAD ZAKI BIN EMBI

Citation

BA-12ANCvC-64-10/2023 (Mahkamah Tinggi)
Court

High Court
Case number

BA-12ANCvC-64-10/2023 (Mahkamah Tinggi)

An undischarged bankrupt lacks legal capacity under s38(1)(a) to commence or defend ordinary contractual proceedings without prior sanction from the DGI; the exception for injury to person is inapplicable to commercial consultancy claims; a sanction granted after the proceedings cannot retrospectively cure the jurisdictional defect; accordingly the Sessions Court judgments were void ab initio and must be set aside, while leave obtained by HDC under s8(1)(a) was valid to continue the appeals.
7 Jan 2022

Lee Kam Yoong 1. ) Bank Kerjasama Rakyat Malaysia Berhad 2. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

Citation

BA-24NCvC-780-07/2021 (Mahkamah Tinggi)
Court

High Court
Case number

BA-24NCvC-780-07/2021 (Mahkamah Tinggi)

The Amended Originating Summons was dismissed because the Order for Sale dated 9.12.2019 is valid and enforceable under the National Land Code, the applicant as an undischarged bankrupt lacked sanction from the Director General of Insolvency and filed in the wrong forum (bankruptcy matters belong to the Winding Up/Bankruptcy Court), and the applicant failed to establish any 'cause to the contrary' under s256(3) to justify setting aside or varying the order to permit a private treaty sale of half the property.
8 Oct 2019

HIA CHOO NAI OCBC BANK (MALAYSIA) BERHAD

Citation

WA-38-511-06/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-38-511-06/2019 (Mahkamah Tinggi)

The DR's decision of 27.8.2019 must be set aside because the DR considered and relied upon affidavits and submissions by a defendant who, as an undischarged bankrupt, was incompetent to engage counsel, file affidavits or pursue the proceedings without prior sanction from the Director General of Insolvency; the proper course was to adjourn to await DGI sanction and, in consequence, the defendant's Notice of Appeal is to be struck out and the DR's orders set aside. The plaintiff remains free to re-file and to exercise its rights as a secured creditor under s 8(2).

Malaysia Case Law

1. ) ELAINE GAY CHOW SONG 2. ) KWAN HUNG CHEONG 1. ) ZUNG ZANG HOLDINGS SDN BHD 2. ) WONG NYUK CHING 3. ) KWAN PHUI HA 4. ) SEBASTIAN KWAN KUAY TAT 5. ) ZUNG ZANG TRADING SDN. BHD. BUKAN PIHAK-PIHAK Suruhanjaya Syarikat Malaysia (SSM)

THIYAGARAJAN A/L MPL YEGAPPAN 1. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA 2. ) DATO ROBERT TEO KHENG TUAN 3. ) CIMB BANK BERHAD

HALAL DEVELOPMENT CORPORATION BERHAD AHMAD ZAKI BIN EMBI

Lee Kam Yoong 1. ) Bank Kerjasama Rakyat Malaysia Berhad 2. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

HIA CHOO NAI OCBC BANK (MALAYSIA) BERHAD