Malaysia Case Law: Decisions & Judgments

Topic

Twilight period

Legal area

Court

27 Feb 2026

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) Ketua Pengarah Insolvensi Selaku Wakil Sah Dan Pengurus Dan Penerima Estet Lim Thian Hock @ Lim Thiam Hock, Simati (Dalam Kebankrapan) 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

Citation

J-02(NCvC)(W)-765-05/2023 (Mahkamah Rayuan)
Court

NCvC
Case number

J-02(NCvC)(W)-765-05/2023 (Mahkamah Rayuan)

Court held undue preference claims are governed by the two-year twilight under IA 1967 s52 and payments to LTH, Siva and LKY lacked valuable consideration and breached directors' duties so appeals allowing recovery were justified; fraudulent preference under CA 1965 s293 read with IA 1967 s53 requires proof of a dominant intention to prefer and the post-dated cheques given to Cemerlang Coke were made under commercial pressure and to preserve the company so no fraudulent preference was proven for the first six cheques, but the seventh cheque paid after presentation of the petition was void and…
27 Feb 2026

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) LIM KUI YONG 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

Citation

J-02(NCvC)(W)-764-05/2023 (Mahkamah Rayuan)
Court

NCvC
Case number

J-02(NCvC)(W)-764-05/2023 (Mahkamah Rayuan)

Payments to directors within two years that lacked documentary evidence or valuable consideration were void as undue voluntary settlements under s52 IA1967/s293 CA1965 and the directors who authorised them breached duties and are liable to repay; fraudulent preference under s53 IA1967/s293 CA1965 requires proof of a dominant intention to prefer and the date of giving post-dated cheques is the date of preference; applying these principles the Court allowed recovery against directors (Appeals 765, 761, 764), found no fraudulent preference in respect of the initial cheques given to Cemerlang Cok…
27 Feb 2026

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) CEMERLANG COKE INDUSTRIAL SDN BHD 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

Citation

J-02(NCvC)(W)-763-05/2023 (Mahkamah Rayuan)
Court

NCvC
Case number

J-02(NCvC)(W)-763-05/2023 (Mahkamah Rayuan)

The Court held that claims based on void voluntary settlements are governed by a two‑year twilight under s.52 IA 1967 and liable where payments lacked valuable consideration or were not in good faith; fraudulent preference under s.53 IA 1967 requires proof of a dominant intention to prefer and cannot be established merely by effect; commercial pressure is a fact‑based defence where the dominant intention was to preserve the company as a going concern; a post‑petition payment will not be validated unless it benefits the general body of creditors or is shown to be bona fide and just and fair—ap…
7 Mar 2024

JAKS SDN. BHD. JAKS ISLAND CIRCLE SDN. BHD. (DALAM LIKUIDASI)

Citation

BA-24NCC-95-08/2023 (Mahkamah Tinggi)
Court

High Court
Case number

BA-24NCC-95-08/2023 (Mahkamah Tinggi)

The court held that the effective date for the contra arrangement is the date the parties agreed and recorded the arrangement (15 September 2021), not the later date of formal execution of the SPAs (14 December 2021); because the agreement date was outside the six‑month twilight period preceding the creditors' voluntary winding up, section 528 did not invalidate the transactions and the Originating Summons (prayers 1–7) was allowed.

Malaysia Case Law

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) Ketua Pengarah Insolvensi Selaku Wakil Sah Dan Pengurus Dan Penerima Estet Lim Thian Hock @ Lim Thiam Hock, Simati (Dalam Kebankrapan) 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) LIM KUI YONG 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

MEGAFEST SDN BHD (DALAM LIKUIDASI) 1. ) CEMERLANG COKE INDUSTRIAL SDN BHD 2. ) SIVANANTHAM A/L MUTHU KARPAN 3. ) LIM KWEE GEE

JAKS SDN. BHD. JAKS ISLAND CIRCLE SDN. BHD. (DALAM LIKUIDASI)