L9. Winding Up

Professional Practice II Multimedia University Trimester 1: 2010/2011

LECTURE 11 :- INSOLVENCY PART II : COMPANIES WINDING UP 11.1 Introduction

1. Governing law  Co!"ni#$ Act 1%&' (CA) ! Co!"ni#$ Windin* u! Ru+#$ (CWR) 1%, "rocedure /Ru+#$ o0 t# 2i* Court (2C) 2. Pur"ose of winding u" is to dissolve t#e com"any! com"any! sell off its assets and settle all de$ts. %. Ty"es Ty"es of winding u"& vo luntary winding u" ' involuntary winding  u" also (nown as com"ulsory winding&u" 11. Ground$ 0or Windin* u! $.13 (1) CA T#e )ourt may order a winding u" u " if &

(a) t#e (a) t#e com"any #as $y s"ecial resolution resolved t#at it $e wound u" $y t#e )ourt* (b) default (b) default $y t#e com"any in lodging t#e statutory re"ort or in #olding t#e statutory meeting* (c) com"any (c) com"any fails to commence $usiness wit#in a year from its incor"oration or sus"ends its $usiness for a w#ole year* (d) t#e (d) t#e num$er of mem$ers is reduced to $elow two* (e) the company is unable to pay its debts; (f) t#e (f) t#e directors #ave acted in t#eir own interests $eing unfair or un+ust to ot#er mem$ers* (g) an (g) an ins"ector a""ointed under und er Part I, #as re"orted t#at #e is of o"inion & -i t#at t#e com"any cannot "ay its de$ts and s#ould $e wound u"* or -ii it is in t#e interests of t#e "u$lic or s#are#olders or creditors t#at t#e com"any $e wound u"* (h) (h) w#en t#e duration if any! of t#e com"any fied $y t#e memorandum or articles e"ires or t#e occurance of any event! "roviding "roviding for t#e com"any com"any to $e dissolved* dissolved* (i) t#e (i) t#e )ourt is of o"inion t#at it is +ust and euita$le to do so* (j) t#e com"any com"anys licenc licencee under under t#e an(in an(ing g and 3inanci 3inancial al Insti Institut tution ionss 4ct 4ct 1565 or t#e Islami Islamicc an(ing 4ct 156% #as $een revo(ed or surrendered* (k) t#e (k) t#e com"any #as carried on Islamic $an(ing $usiness! licensed $usiness! or sc#eduled $usiness! or it #as acce"ted! received or ta(en de"osits in Malaysia! in contravention of t#e an(ing and 3inancial 3inancial Institutions Institutions 4ct 1565 or t#e Islamic an(ing 4ct 156%! &7 now 3inancial 8ervices 4ct 201% and Islamic 3inancial 8ervices 4ct 201%  not in force yet9 yet9 (l) t#e (l) t#e com"any #as #eld a licence under t#e Insurance 4ct 155 and& -i t#at licence #as $een revo(ed* -ii an( ;egara Malaysia #as $een "etitioned for its winding u" under su$section <6-= of t#e Insurance 4ct 155* or -iii an order under "ara <5-=-$ of t#e Insurance 4ct 155 #as $een made in res"ect of it* -m t#e com"any is $eing used for unlawful "ur"oses or any "ur"ose "re+udicial to or incom"ati$le wit# "eace! welfare! security! "u$lic order! good order or morality in Malaysia* or -n t#e com"any is $eing used for any "ur"ose "re+udicial to national security or "u$lic interest. () A co!"n4 $"++ 5# d###d to 5# un"5+# to !"4 it$ d#5t$ i0 & (a) a cred credit itor or #aving #aving a de$t de$t eceed eceedin ing g RM'66/& #as served on t#e com"any $y leaving at t#e r#*i$t#r#d o00ic# a demand reuiring t#e com"any to "ay t#e sum so due! and t#e com"any #as for 7 8##9$ t#ereafter neglected to "ay t#e sum * (b) eecution (b) eecution or ot#er "rocess issued on a +udgment! decree or order of any court in favour of a creditor of t#e com"any is returned unsatisfied u nsatisfied in w#ole or in "art* or Pre"ared $y Gita >ad#a(ris#na

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(c) it is "roved to t#e satisfaction of t#e )ourt t#at t#e com"any is una$le to "ay its de$ts* and in determining t#is t#e )ourt s#all ta(e into account all lia$ilities of t#e com"any. 11.7 Vo+unt"r4 8indin*-u! $.'

1. T#is is done voluntarily $y t#e mem$ers or creditors. T#e mem$ers winding u" ta(es "lace w#en t#e co!"n4 $o+;#nt i.e. in a "osition to "ay all its de$ts. 2. )om"any #as to ma(e a declaration of solvency stating t#at it will $e a$le to "ay all its de$ts wit#in 12 mont#s of commencing t#e winding u" "rocess. %. t#e com"any needs to "ass a resolution w#ic# may $e done w#ere:& -i t#e "eriod fied under t#e Memorandum e"ires * -ii t#e occurrence of certain events w#ic# lead to dissolution -iii t#e com"any "asses a resolution for voluntary winding u" at t#e general meeting * -iv t#e com"any resolves $y s"ecial resolution to $e wound u". =. A!!oint#nt o0 +id (In Lieceiver or liuidator at any time after t#e "resentation of t#e winding u" "etition $. a""roved liuidatorA means an a""roved com"any auditor w#o #as $een a""roved $y t#e Minister under section 6 as a liuidator and w#ose a""roval #as not $een revo(ed* A@fficial >eceiverA means t#e @fficial 4ssignee! Be"uty @fficial 4ssignee! 8enior 4ssistant @fficial 4ssignee! 4ssistant @fficial 4ssignee! an(ru"tcy @fficer and any ot#er officer a""ointed under t#e an(ru"tcy 4ct15C $.,(1) w#ere no liuidator #as $een a""ointed or nominated t#e @fficial >eceiver-@> s#all $e a""ointed as t#e "rovisional liuidator and s#all continue to act until an official liuidator is a""ointed. =. $.7(7 t#e liuidator is entitled to receive a salary $y way of "ercentage or ot#erwise $y agreement wit# committee of ins"ection. R#!r#$#nt"ti;# O0 T# E$t"t# O0 =u"n M#i Lin* D#c#"$#d (Pro;i$ion"+ Lid @617 7 CLB 1%& )4: In eercising its "ower to determine t#e salary or remuneration of a "rovisional liuidator! t#e court a""lies t#e test of what is fair and reasonable remuneration to $e awarded in t#e circumstances of eac# "articular case! ta(ing into consideration! among ot#ers! t#e com"leity of t#e matter involved and t#e lengt# of time ta(en to com"lete t#e tas( given to t#e "rovisional liuidator. It is trite t#at t#e "rovisional liuidator may $e reimbursed of the expenses properly incurred out of t#e co!"n4$ "$$#t$ t#at were administered $y t#e "rovisional liuidator and were #eld $y t#em. Pre"ared $y Gita >ad#a(ris#na

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T#e $urden was on t#e PD to s#ow #er entitlement to t#e fees and costs t#at s#e claimed and t#at t#e remuneration was +ustified. T#e PD! once a""ointed! owed t#e res"ondent a fiduciary duty to act fairly and objectively in the interest of the respondent . In $reac# of t#is fiduciary duty! t#e PD #ad failed to ensure t#at t#e fees or "rices o$tained were com"etitive. Go S8## O ? Or$ V. 2#n* Bi =#n* ? Anor@611 & CLB 31 Issue w#et#er remuneration of Diuidator must $e a""roved $y court. )4: It would ma(e no sense at all to im"ose a condition t#at t#e "rivate liuidator a""ointed $y t#e court to ta(e c#arge of a winding&u" "rocess! must in all instances a""roac# t#e court first for a""roval $efore $eing "aid remuneration from availa$le funds of t#e com"any under liuidation. 8ufficient safeguards under s.%0<)415< for s#are#olders to c#ec( t#e liuidator in so far as t#e issue of reasona$leness of t#eir remuneration and e"enses are concerned or generally t#eir conduct in t#at ca"acity.

<. T""n Sun*#i Du" D#;#+o!#nt S> @1%%, 91 )4 :& notwit#standing t#e a""ointment of "rovisional liuidators! directors will still retain residuary "owers eg. To instruct solicitors to o""ose t#e "etition etc. . E#ere a winding u" order #as $een made or a "rovisional liuidator a""ointed no action s#all $e $roug#t against t#e com"any wit#out t#e leave of t#e court. ,. St"4 o0 Proc##din*$ in Windin* u! 1. $. once a "etition for winding u" #as $een "resented to t#e court and $efore any order for winding u" #as $een made! a com"any! creditor or contri$utory may a""ly to court for a stay of any "roceedings in any "ending actions against t#e com"any 2. $. 7(1) after an order for winding u" #as $een made t#e court may u"on t#e a""lication of a liuidator! creditor or contri$utory of t#e com"any stay "roceedings at t#e courts discretion. T#e court may reuire t#e liuidator to su$mit a re"ort on t#e facts of t#e matter. $.7 ( a co"y of t#e order s#all $e lodged wit# t#e >o) and @> wit#in 1= days .

%. $.&(7 once a "rovisional liuidator #as $een a""ointed or a winding u" order made! no action s#all $e commenced or "roceeded wit# wit#out t#e leave of court. 11. In;o+unt"r4 or Co!u+$or4 Windin* / u!

1. T#is is t#e most common ty"e of winding&u". 2. $.1,  "arties w#o may "etition:& (a) t#e com"any* (b) any creditor!* (c) a contri$utory or any "erson w#o is t#e "ersonal re"resentative of a dece ased contri$utory or t#e trustee in $an(ru"tcy or t#e @fficial 4ssignee of t#e estate of a $an(ru"t contri$utory* (d) t#e liuidator* (e) t#e Minister "ursuant to $ 6' or on t#e ground s"ecified in "aragra"# 13 (1) (d)F (f a com"any w#ic# is a licensed financial institution! (g) a com"any w#ic# is licensed under t#e Insurance 4ct 155! an( ;egara Malaysia* (h) t#e >egistrar on t#e ground s"ecified in section 216-1 -m or -n* 1

7155C9 2MDF 2< Pre"ared $y Gita >ad#a(ris#na

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(i) institution under t#e Malaysia Be"osit Insurance )or"oration 4ct 200< or of any two or more of t#ose "arties. -2 ;otwit#standing anyt#ing in su$section -1 & (a) a "etition may not $e "resented on any of t#e grounds s"ecified a$ove unless:& -i t#e num$er of mem$ers of t#e is $elow 2* or -ii in t#e case of a contri$utor #e #as #eld t#e s#ares for at least  mont#s (b) default in lodging t#e statutory re"ort or in #olding t#e statutory meeting! (c) t#e )ourt s#all not #ear t#e "etition if "resented $y a contingent or "ros"ective creditor until suc# security for costs #as $een (d) t#e )ourt s#all not! w#ere a com"any is $eing wound u" voluntarily! ma(e a winding u" order unless it is satisfied t#at t#e voluntary winding u" cannot $e continued wit# due regard to t#e interests of t#e creditors or contri$utories. 3. $.1% / winding u" is deemed to #ave commenced t#e moment a petition for winding up is presented. 4. $.13  circumstances for winding  u" 7 same as in voluntary winding u"9 T#e most common ground is under $.13(#   una$le to "ay de$ts. . . 8#r# Hud*#nt i$ or# t"n & 4#"r$ o+d / i$ +#";# r# ; Gr"nd Unit#d 2o+din*$ >d. @1%%3  / +udgment o$tained on 15 Fan 1550 and winding u" "etition filed on %0 Fan. 155  clearly more t#an  years. owever ) eld: O.&r. R2C not a""lica$le in a winding u" as t#e winding u" "etition does not come wit#in Ha writ of eecution. ;ot a""lica$le to "etitions under s.216 &. T#$t o0 In"5i+it4 to !"4 d#5t$ / co#rci"+ in$o+;#nc4 Test is one of commercial insolvency & una$le to meet current de$ts  even if it #as su$stantial wealt# w#ic# cannot $e immediately realied. M"+"4"n P+"nt Pt#. Ltd. ; Mo$co8 N"rodn4 >"n9 Ltd. @1%36 7 / res"ondent $an( #ad "roved t#e de$t and t#at t#e de$t #ad not $een "aid. R# 2on* 2u"t R#"+t4)M) S> UA> >d.; 2on* 2u"t R#"+t4 (M)S>@1%3, - folld. M>J Jin"nc# >d. ; Sri 2"rt""$ D#;#+o!#nt S> @1%% '  8) 21 days  % wee(s sti"ulated in s.216-2-a refers to t#e "eriod of neglect to "ay $efore t#e "resum"tion of ina$ility to "ay arises. It does not relate to t#e ;otice of demand itself. 3urt#er even if a com"any #as wealt# loc(ed u" not "resently realia$le and #as no assets to meet its current lia$ilities it is commercially insolvent.

!. $.13()(") $t"tutor4 notic# o0 d#"nd T#ere is no "rescri$ed form. It #as to relate to t#e s"ecified de$t! liuidated sum.

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N* A =8"4 ; T"i =it Ent#r!ri$#@1%3& 9  serves to esta$lis# t#at t#ere is a de$t due and t#e )om"any #as not $een a$le to "ay it.

". S#r;ic# o0 Notic# "t r#*i$t#r#d o00ic# r.13CWR / sufficiently served if left or sent $y "re"aid "ost to t#e com"anys last (nown address or t#at of t#e "erson to $e served wit#. W#n* W" Con$truction S> ; Yi9 Joon* D#;#+o!#nt S> @1%% , / +udgment de$t of >M2!26=!2C.5=. )om"any raised 2 "reliminary issues  -i s.216-2 reuired service to $e effected $y leaving it at t#e com"anys registered office and not $y sending it $y "ost. -ii T#ere was no statutory "resum"tion of insolvency. eld:& w#at is im"ortant is "roof of actual service or delivery $y t#e creditor w#et#er $y "#ysically leaving it at t#e last (nown address ! registered office or $y "ost. C4un D#;#+o!#nt S> ; Su!#r" S> @1%%& 3 service effected at t#e com"anys "lace of $usiness instead of t#e registered address #eld to $e good service. 4s t#e o$+ective was to $ring t#e winding u" "etition to t#e attention of t#e com"any. ET Mi S> ; Sun St##+ Con$truction S> @66' %- to $e deemed effective service wit#in t#e terms of s. 216-2-a was t#at t#ere must $e adeuate "roof of "#ysical delivery to t#e reci"ient. In t#is instance! t#e reuirement #ad $een fulfilled w#en t#e notice of demand was delivered to t#e registered office of t#e res"ondent $y registered "ost. 3urt#ermore! t#e res"ondent #ad entered an a""earance and filed a notice to o""ose t#e "etition. Moreover! t#e res"ondent (new t#e case against it and even if t#e notice of demand was not "ro"erly served! t#e res"ondent was not "re+udiced at all.

#. Irr#*u+"riti#$ in t# Notic# o0 D#"nd 1 3ormal defects or irregularities will not invalidate t#e winding  u" "roceedings unless t#at )ourt is satisfied t#at su$stantial in+ustice #as $een caused $y t#e defect or irregularity w#ic# cannot $e remedied $y any order of t#e court under r.1% ="!"t Ti5#r Indu$tri#$ S> ; >#n$" S> @1%%6 16 / >es"ondent o""osed t#e "etition on t#e grounds t#at t#e notice was irregular as t#e sum was uncertain $ecause of t#e inclusion of t#e demand for interest and costs and $ecause of t#is t#e amount demanded was more t#an w#at was actually due. 2#+d:& )ost and interest was not additional to t#e sum demanded. It was t#e warning of t#e "ossi$ility of incurring furt#er amount if t#e demand was not met.

2 Mis& statement of t#e amount due.& not fatal as long as can $e ascertained. YPBE Con$u+t"nc4 S#r;ic#$ S> ; 2#++#r J"ctorin* (M) S>@1%%& 911  )4:& even if t#e notice overstated t#e amount! owing! it is "ertinent to loo( at t#e circumstances i.e.w#et#er or not t#e 

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com"any is una$le to "ay t#e de$ts. T#ere was no evidence to s#ow t#at t#e a""ellant was ca"a$le of "aying #is de$ts. M"+"4$i" Air C"rt#r Co. S> ; P#tron"$ D"*"n*"n S> @666 12 & T#e a""ellant dis"uted t#e validity of t#e s 216 notice. T#e )4 #eld t#at t#e failure to uantify t#e actual sum due in t#e s 216 notice did not render t#e demand invalid and! on t#e facts! t#e sum demanded in t#e res"ondent?s notice was not ecessive. Issue $efore t#e 3) was :& -i w#et#er $ 13()(") s#ould $e inter"reted literally and strictly or widely and li$erally* and -ii in t#e event it is t#e literal and strict inter"retation t#at oug#t to $e ado"ted! w#et#er t#e $ 13 notice must uantify and s"ecify t#e eact and actual sum due as at t#e date of t#e demand and leave no furt#er sums/amount to $e calculated/uantified or ascertained $y t#e reci"ient of t#e notice. 3):& -i T#e court s#ould ado"t a li$eral inter"retation w#en considering t#e "rovisions of s 216-2 -a of t#e 4ct. T#e ado"tion of a literal inter"retation would $e difficult as it would com"el t#e court not to ma(e a winding u" order notwit#standing t#e eistence of clear evidence t#at an undis"uted sum due eceeding >M<00 #as remained un"aid after a demand made wit#out any reasona$le e"lanation for t#e failure to "ay -ii 4 notice of demand under s 216 need not s"ecify t#e eact sum due as at t#e date of demand. 8o long t#e sum due eceeded >M<00 and remained un"aid after a demand made wit#out any reasona$le e"lanation

$. A!!+ic"5i+it4 o0 $.&(7) Liit"tion Act 1%'7 W"n*$"ni S> ; Gr"nd Unit#d 2o+din*$ >d. @1%%3'MLB7' - In t#is case! since t#e "etitioner #ad in its statutory notice included a sum caug#t $y $ &(7) Liit"tion Act 1%'7 ! -i t#e entire notice was $ad in law. T#erefore t#is "etition oug#t to $e dismissed as it was statute $arred. -ii owever generally T#e >) do not a""ly to a "etition filed under $ 13. T#erefore! in res"ect of a winding&u" "etition commenced "ursuant to $ 13! t#ere is no reuirement t#at t#e "etitioner oug#t to o$tain leave of court "ursuant to O & r  R2C 11.W#r# D#5t i$ di$!ut#d on $u5$t"nti"+ *round$  A5u$# o0 Proc#$$

E#ere a com"any dis"utes t#e de$t on su$stantial grounds t#en it is ;@T deemed to #ave neglected to "ay t#e de$t. & Wangsani S#curicor (M) S> ; Uni;#r$"+ C"r$ S>@1%3' 91% & E#ere a com"any neglects to "ay its de$ts after issue of t#e notice of demand! it raises a re$utta$le "resum"tion t#at it is una$le to "ay. T#is gives t#e court +urisdiction to order a winding&u". R# London ? P"ri$ >"n9in* Cor!n.@13, 91=  it is an a$use of t#e "rocess of t#e court to "etition to wind u" t#e court w#ere t#e de$t is $eing dis"uted.

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720009= MDF  15J )ases=== Pre"ared $y Gita >ad#a(ris#na 1%

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A!ir"i S> ; T"i+ N#$"n (M) S>@1%3& 91<  "etition dismissed wit# costs as it was not a $ona fide "etition for relief $ut an attem"t to cause em$arassment to certain "arties and was an a$use of t#e "rocess of t#e court. Ann Boo M#t"+ S> ; P#5#n""n MY C""4" S> @666 91  a com"any would not $e "rotected from a winding u" order under s.216 sim"ly $y "ur"orting to dis"ute a sum claimed in t#e notice of demand wit#out su$stantiating t#at it was a real $ona fide dis"ute. D"t"r"n R#nt"$ S> ; >MC Con$truction S>@66, 91C & )om"any?s failure to ma(e "ayment under arc#itect?s interim certificates issued under $uilding contract Kuestion was w#et#er t#ere was a rig#t of set off de$t as alleged . Eas it a $ona fide su$stantial dis"ute. )4 eld:- @nce t#e res"ondent #ad a de$t due to it from t#e a""ellant t#at remained unsatisfied! it was entitled to "resent a winding u" "etition. 4ll issues t#at went to c#allenge t#e de$t mig#t $e dealt wit# at t#e #earing of t#e "etition. 8ince t#e de$t was not bona fide dis"uted on su$stantial grounds! t#e ig# )ourt was entirely correct in directing t#at t#e a""ellant $e wound u". A$i"n Si#+d W"r#ou$# Sdn. >d. ; D"ru"+in**" Sinni" @66, 13 - T#is was an a""lication $y t#e P for an interlocutory in+unction to restrain t#e B from "resenting a winding u" "etition under $ 13CA on account t#at t#e P was una$le to "ay its de$t. T#e B in t#is case claimed for a sum of >M62!525/== for services rendered and a loan t#at was etended to t#e )J@ of t#e P -Ht#e de$t. T#e P soug#t an in+unction on two grounds: -i t#at t#e P was not Hcommercially insolvent so as to $e una$le to "ay t#e de$t* and -ii t#at t#e de$t claimed was dis"uted on su$stantial grounds. T#e P contended t#at t#e de$t did not eist as t#e de$t #ad $een re"aid. It was furt#er contended t#at t#e letter of admission relied u"on $y t#e defendant to "rove t#e de$t t#oug# issued $y a direct em"loyee of t#e P was in actual fact a "erson under t#e control of t#e B and t#erefore s#ould not $e relied u"on as "roof of admission of t#e de$t. ) eld:& -i )ourt not satisfied t#at t#e P was Hcommercially insolvent -ii t#ere were reasona$le grounds to dis"ute t#e d e$t. -iii a""lication allowed. P#ndin* A!!#"+ P"ci0ic ? Ori#nt"+ 1 In$ur"nc# Co >d ; Muni"" Muni"nd4 @611 1 CLB %, ! )/4 #eld: LT#e filing of an a""eal does not revert t#e status of t#e +udgement de$t to its original status as a dis"uted de$t $efore +udgement was o$tained. T#e filing of an a""eal does not ma(e a valid and enforcea$le +udgement a dis"uted de$t. T#erefore! t#e res"ondent #ad t#e rig#t to "roceed to issue a statutory notice under s. 2162-a )4 15<.

8ee & No5#+ S!#ci"+t4 Sdn. >d. ; S#d"! Jood Indu$tri#$ Sdn. >d. , @66% 1 LNS , / a""lication under s.222 for stay of winding&u" "ending a""eal dismissed. Sri B#+ud" Sdn. >d. ; P#nt"+in9 Sdn. >d. @663 13 LNS 1%6 / as a$ove Sin* 2u! Con$truction Sdn. >d. ; G#n#r"+ Soi+ @1%%% 1 MLB 17 1&,

1<

715691)DF =5% 720009 < MDF C05 1C 7200C9  )DF 1% 16 7200C9= MDF  Pre"ared $y Gita >ad#a(ris#na 1

C


 !#tition$ 0or 8indin* u! "*"in$t t# $"# co!"n4 . M"+"4$i"n A$$ur"nc# A++i"nc# >d. ; Co$" Pro!#rti#$ Sdn >d @ CA 611 C )DF 5=2 T#e legal issues t#at arose in t#ese a""eals are:& -i E#et#er leave is reuired $efore any c#allenge can $e mounted against a Einding&u" @rder -ii Boes a creditor #ave t#e rig#t to a""ear in a second winding&u" "etition against t#e same )om"any -iii Is )omsas lia$ility secondary in nature and t#erefore not su$+ect to a winding&u" "etition* -iv E#et#er M44 as a secured creditor t#at o"ted not to "roceed wit# foreclosure "roceeding is "revented from filing a winding&u" "etition* and -v E#et#er M44 is a su$stantial creditor of )omsa and entitled to "artici"ate in t#e a""ointment of t#e liuidator of )omsa. )4: -i >euirement of leave $efore c#allenging a Einding&u" @rder  s.2<%)415<  cumulative  Sri Hartamas Dev. S/v !" "inance#$%%$&' adiaddin bin !ohd !ahidin  nor v. rab !alaysian "inance hd. #$%%*& $ !+, -%-' !arilionebel (!) Sdn. hd.  nor v. 0erdana !erchant an1ers hd.  2ther ppeals#344$& - 5+, 36* 7 %o. has right of appeal. 4s a corollary to t#at rig#t a creditor s#ould #ave an eual rig#t to $e #eard. 4s suc# 4""ellant not reuired to a""ly for leave to c#allenge winding&u" order. -ii @n t#e facts of t#e case! t#e 4""ellant is a secured creditor of )omsa. T#e 4""ellant #as t#e rig#t to file t#e winding&u" "etition.$.1()CA1%&' - &he %ourt may on the petition coming on for hearing '.the application of '.any person ho has given notice that he intends to appear on the hearing of the petition  ( f) give such directions as to the proceedings as the %ourt thinks fit.* oey 2i +eng v. 8rans esources 5orporation Sdn.hd. #3443& $ 5+, 649. )reditor #as rig#t to a""ear in t#e 2nd. winding u". -iii @n t#e facts!t#ere is sufficient evidence to s#ow contractual clauses t#at ma(e )omsa "rinci"ally lia$le for t#e de$t owing to t#e 4""ellant. -iv "roof of de$ts in any winding&u" "roceedings  $. %1CA1%&' / $. >A +roof by ,ecured %reditors ($) -f a secured creditor realies his security he may prove for the balance due to him after deducting the net amount realied. -v aving concluded t#at t#e 4""ellant is a su$stantial creditor of )omsa! t#e 4""ellant #as t#e rig#t in t#e c#oice of t#e liuidator of )omsa. Ee find t#at t#e 4""ellant #as indeed $een denied its $asic rig#t of o""ortunity to $e #eard. T#e law is very clear as to t#e rig#ts of t#e 4""ellant! as a su$stantive creditor. Sin"r+i Sdn >d ;. W"H" D#$tin"$i (M) Sdn >d @61 7 CLB &,3 @CA Einding&u" & 3iling of more t#an one "etition at any one time & E#et#er leave of court reuired 4n order for winding u" was granted $y t#e I"o# ig# )ourt. 8u$seuently t#e case was transferred to t#e ND) as t#e res"ondents registered was in ND. Meanw# ile t#e res"ondent a""lied for a stay. 4t t#e #earing informed $y officer of Insolvency Be"artment t#at t#ere was a "rior winding&u" "etition vide anot#er ND). )onseuently t#e a""lication for stay of t#e I"o# ) order was dismissed and t#e winding&u" order set aside. ence t#is a""eal. T#e issues for t#e court?s determination #erein were! inter alia! i w#et#er t#e learned +udge of t#e ND&B6 court #ad t#e +urisdiction to set aside t#e winding&u" order earlier made and "erfected $y t#e I"o# ig# )ourt and ii w#et#er t#e learned +udge of t#e ND&B6 )ourt was rig#t w#en #e set aside t#e winding u" order earlier made $y t#e I"o# ig# )ourt. eld allowing t#e a""eal wit# costs Pre"ared $y Gita >ad#a(ris#na

6


-1 T#e ND) was functus officio and t#e matter was res +udicata and t#e court t#erefore #ad no +urisdiction to set aside or rescind a winding&u" order earlier made and "erfected $y anot#er ig# )ourt. -2 E#en t#e I"o# Einding&U" Petition was filed! t#ere was no winding&u" order in eistence against t#e res"ondent in any court. T#e ND&B2 Einding&U" @rder was only made a$out one mont# after t#e I"o# Einding&U" Petition was filed. -"ara 2% -% It is a settled legal "rinci"le t#at in law! t#ere is not#ing against t#e filing of more t#an one winding&u" "etition against t#e same com"any at any one time. ;o leave was reuired for t#e filing of t#e second and su$seuent winding&u" "etitions if t#e com"any #as not $een wound& u" yet. 11.' Windin* u! Proc#dur#

1. 4 "etition for winding u" under $.13 is normally "resented su$seuent to a final +udgment 2. 4 "etition may also $e "resented wit#out a +udgment $ut after service of a ;otice of Bemand "ursuant to $.13 s"ecifying t#e de$t. $.13()(") a com"any s#all $e deemed to $e una$le to "ay its de$ts if it #as for 3$ days t#ereafter neglected to "ay t#e sum demanded or secure or com"ound it to t#e reasona$le satisfaction of t#e creditor. %. Procedure  r.7 CWR / -i Petition s#all $e "resented to t#e ) -ii )an $e "resented u"on e"iry of 21 days of t#e service of t#e ;otice of Bemand on t#e >es"ondent -iii r.& every "etition in Jor  must $e verified $y affidavit in Jor , $y t#e "etitioner! or in t#e case of a com"any $y its director! secretary or ot#er "rinci"al officer r.& T#e affidavit s#ould $e sworn and filed within 6 days of t#e "etition $eing "resented -iv -v >egistrar s#all a""oint time and "lace of #earing  written on t#e sealed co"ies

11.& I$$u#$ 0or $#ttin* "$id# P#tition / 11.&.1 D"t# o0 P#tition ? A00id";it Li To Cio8 ; Di"n Ton* Cr#dit ? D#;#+o!#nt S> @1%% 915  ere an affidavit verifying t#e "etition was sworn $efore t#e "etition was "resented. ) eld:- -i)t#e affidavit must $e in relation to some matter t#at is "ending in t#e court. It cannot "ur"ort to verify somet#ing non eistent at t#e time it is sworn. -ii 4n a""lication for etension of time to file a su$seuent affidavit to verify t#e "etition oug#t to $e made under r.,(1)CWR . -vit#e court could not eercise its discretion to allow t#e "etitioners to re&swear a 2nd. 4ffidavit to verify t#e 1st.as t#is would amount to condoning t#e flouting of r.& -vii "etition struc( off. YPBE Con$u+t"nc4 Con$u+t"nc4 S#r;ic# S> ; 2#++#r J"ctorin* (M) S> @1%%& 920  t#e affidavit and "etition were dated 10 Fuly 155<. Petition was filed t#e same day w#ile t#e affidavit was only filed on t#e 11 Fuly 155<. ) eld:& r.2 not infringed. ;o evidence t#at t#e affidavit was sworn $efore t#e "etition was "resented. 15

7155=92 MDF %=< 715592MDF =62 Pre"ared $y Gita >ad#a(ris#na 20

5


S"ri At+"ntic S> ; Ai9 =i Ent#r!ri$# @1%%3 921& "etition was "resented to t#e court to wind u" t#e res"ondent com"any on 1< 3e$.156C. owever! t#e affidavit verifying t#e "etition was affirmed on t#e 10 3e$!156C a$out four days $efore t#e "resentation of t#e "etition itself! w#ic# was a clear failure to com"ly wit# r. & CWR . 4t t#e #earing of t#e "etition! t#e res"ondent com"any contended t#at t#e non&com"liance was a fatal defect and t#at t#e "etition must $e re+ected as t#is court #ad no "ower to cure suc# a defect. eld: -1 in t#is case! none&com"liance wit# r.& does not render t#e "etition a nullity and is cura$le $y t#e court under $.1() CA -2 $.1() CA allows t#e court to cure a tec#nical error w#ic# does no in+ustice to t#e res"ondents. Jori$ N#t8or9 S#r;ic#$ Sdn >d ;. Bon$on Contro+$ (M) Sdn >d 720059 5 )DF =2% T#is was an a""lication $y t#e "laintiff for an in+unction to restrain t#e defendant from "roceeding to "resent a winding u" "etition against t#e "laintiff "ursuant to s. 216 of t#e )om"anies 4ct 15<. T#e s. 216 notice #ad already $een served $y t#e defendant on t#e "laintiff on C Marc# 200C. T#is notice was $ased on an alleged un"aid de$t. T#e "laintiff?s main contention was t#at it #ad a cross claim against t#e defendant due to alleged defective/incom"lete wor(s. T#e uestion t#at arose #erein was w#et#er t#e filing of a winding u" "etition was an a$use of "rocess. 2C: Plaintiff?s a""lication dismissed: -1 t#e defendant?s rig#ts to file t#e winding u" "etition & conferred $y statute! s. 216 )4 15< & "laintiff #ad failed to satisfy t#is court t#at t#e intended "etition! if "roceeded wit# $y t#e defendant! would constitute an a$use of "rocess. -2. T#e "laintiff #ad a""ointed t#e defendant as a su$contractor in a $uilding "ro+ect in Putra+aya. @n t#e facts and evidence! w#ic# were su$stantially undis"uted! t#e defendant $y serving a s. 216 notice wit# t#e "ossi$ility of t#ereafter filing a winding u" "etition against t#e "laintiff was not a$using t#e legal "rocess. -% T#e "laintiff in t#e "resent a""lication #ad also failed to disclose to t#e court certain material facts. 8ince t#e "laintiff was alleging incom"lete/defective wor(s! it was significant t#at t#e "laintiff #ad failed to inform t#e court a$out a retention sum of >M%=C!<0 t#at t#ey were wit##olding. T#ere was a failure to ma(e a full and fran( disclosure. ence! t#e "laintiff?s "resent a""lication must fail.

r.3 notice of intention to a""ear at #earing Jor 3 s#ould $e served at least $y 12.00".m. t#e day $efore t#e #earing r.3(7) a "erson w#o fails to com"ly wit# t#is rule s#all wit# t#e s"ecial leave of t#e court $e allowed to a""ear on t#e #earing of t#e "etition. r.76 affidavit in o""osition to $e filed and served C days $efore #earing and affidavit in re"ly wit#in % days Crocu$#$ ? D"00odi+$ (M) Sdn >d ; D#;#+o!#nt ? Co#rci"+ >"n9 >d @1%%, ]22 A00in- ACJ Jin"nc# >d. ; APMG M"n"*##nt S> @66 7

21

7155691 MDF 201 7155C92MDF C< 2% 720029 MDF 2%0 Pre"ared $y Gita >ad#a(ris#na 22

10


D#+t" Dri;# (M) Sdn >d ; 2on* L#on* Jin"nc# >d.@663 2=  T#is was an a""eal against winding u" order. T#e de$t was not dis"uted. 4""ellant filed notice of intention to a""ear and of intention to raise a "reliminary o$+ection! i.e. non&com"liance of r &. & since t#e affidavit was filed toget#er wit# t#e "etition! t#e im"lication was t#at t#e affidavit was sworn earlier owever #e failed to file affidavit in o""osition. ) dismissed t#e "reliminary o$+ection on t#e grounds t#at it could $e rectified $y re&swearing t#e affidavit and ordered t#e >es"ondent to do so. 4t t#e 2nd. #earing t#e a""ellant w#o #ad yet to file #is affidavit in o""osition a""lied for an ad+ournment on t#e grounds t#at #e was notified of t#e #earing date late. ) refused t#e ad+ournment and granted t#e winding u" order. @n a""eal to t#e )4& )4 eld:& -iT#e facts clearly s#owed t#at t#e a""ellant (new of t#e date of #earing of t#e "etition and #ad am"le time to file t#e affidavit in o""osition "ursuant to r.76(1)! $ut failed to do so. r.76(1) clearly sti"ulates t#at an affidavit in o""osition to wind u" s#all $e filed and a co"y t#ereof served on t#e "etitioner or #is solicitors at least C days $efore t#e date fied for t#e #earing of t#e "etition. T#us! it was unreasona$le to suggest t#at r 76(1) of t#e >ules need not $e com"lied w#en raising a "reliminary o$+ection -2 T#e "ower to grant an ad+ournment of t#e #earing of any matter or any trial is discretionary. @n t#e facts! t#e circumstances did not merit an ad+ournment. T#e a""ellant was already in $reac# of r %0-1 at t#e 1st. #earing of t#e "etition. T#e a""ellant could not now com"lain t#at it #ad $een de"rived of its rig#t to file an affidavit in o""osition to t#e "etition at t#e 2nd. #earing. 11.&. Addr#$$ 0or S#r;ic# R.'(1) every "etition s#all $e served at t#e com"anys registered office or if none! t#en at its "rinci"al or last (nown "lace of $usiness. It can $e left wit# any mem$er! servant or officer of t#e com"any! if none leave it at t#e "remises! or $y suc# means as directed $y t#e court. r.'() E#ere  voluntary winding u" it s#ould $e served on t#e Diuidator a""ointed for t#e "ur"ose. 4ffidavit of service s#ould $e in Jor$ ' or & E#ere "etition is $eing "resented $y a "erson ot#er t#an a liuidator! it s#ould $e s#all $e served "ersonally u"on t#e liuidator r.'(7 it s#ould also $e served on t#e @>/BGI and >@) 11.&.7 Ad;#rti$##nt o0 t# !#tition Jor  * r. at least C clear days $efore t#e #earing or suc# time as t#e court directs r.(") advertisement in 2 daily news"a"ers and gaette R# N=M 2o+din* S> @1%3' 92<  winding u" "etition was filed and fied for #earing for 12 Bec. 156%. Pursuant to r.2=-a advertised and gaetted on 2= ;ov. 156% $ut only circulated on 12 Bec.156%. 4 "reliminary o$+ection was raised t#at t#e "etition #ad not $een advertised at least C clear days $efore t#e #earing. R.1%(1)  "roceedings s#all not $e invalidated $y any formal defect or irregularity unless court is of t#e o"inion t#at t#ere would $e su$stantial in+ustice caused to t#e res"ondent. 2=

720069 = MDF =00

2<

7156<9 2 MDF %50 Pre"ared $y Gita >ad#a(ris#na

11


) eld:- reuirement of r.(" for "u$lication C days $efore #earing in gaette not com"lied. Irregularity not cura$le. 4 new date for #earing given and reuirement for advertisement ' gaette for 2nd. #earing dis"ensed wit#. N=M 2o+din*$ S> ; P"n M"+"4$i" Wood >d .7156C92 In t#is case t#e learned trial +udge #ad eercised #is discretion in dis"ensing wit# t#e advertisements eit#er in t#e /aette or in t#e news"a"ers of a new date for t#e #earing of a winding&u" "etition on t#e facts of t#e "articular case . In #is +udgment t#e learned +udge remar(ed t#at At#e need to gaette #as indeed deteriorated into a mere formality and in t#e face of t#e eistence of widely circulated daily news"a"ers #as "er#a"s $ecome an anac#ronism.A T#e a""ellants a""ealed. 8) 2#+d -1 advertisement of a winding&u" "etition in t#e /aette is a statutory reuirement and deli$erate noncom"liance wit# t#is "rovision may result in adverse conseuences* -2 t#e duty of t#e )ourt and its only duty is to e"ound t#e language of t#e 4ct in accordance wit# t#e settled rules of construction. T#e )ourt #as not#ing to do wit# t#e "olicy of t#e 4ct w#ic# it may $e called u"on to inter"ret. G=M A"+ >d. ; >"n9 Ut"" (M) >d@66 92C - pursuant to a summary +udgment! t#e "etitioner -res"ondent filed a winding u" "etition to wind u" t#e a""ellant com"any for failure to com"ly wit# a notice of demand "ursuant to $ 13. 4 winding u" order was granted to t#e res"ondent. T#e a""ellant a""ealed on t#e ground t#at t#ere was a $reac# of r  in t#at t#e "etition was not advertised C clear days $efore t#e date of t#e #earing on 1C 8e"tem$er 1555. T#e "etition was instead advertised 22 days $efore t#e #earing date. T#e issue for consideration was w#et#er t#e $reac# of r  was an irregularity $y virtue of r 1%  cura$le defects 2#+d! dismissing t#e a""eal: T#ere was no direction $y t#e court under $ 1() to #ave t#e "etition advertised earlier t#an seven days and #ence t#e "etition was advertised in $reac# of r  . T#ere was #owever no in+ustice caused $y t#e $reac# as t#e o$+ect of giving notice to t#e creditors #ad $een ac#ieved. T#e $reac# was t#erefore a tec#nicality amounting to a mere irregularity cura$le under r 1%

11.&.. Att#ndin* t# #"rin* r.7 T#e "etitioner or #is solicitor s#ould attend $efore t#e >egistrar on t#e a""ointed day of #earing. r.7(") 8olicitor #ad to s#ow t#at t#e "etition was duly gaetted and advertised r7(5) "rescri$ed affidavit verifying t#e statements in t#e "etition and affidavit of service r.7(c) consent in writing of t#e a""roved liuidator #as $een o$tained and filed. r.7(d) t#e "rovisions of t#ese >ules as to t#e "etitions #ave $een com"lied wit#. r.7(#) >M%00/& refunda$le de"osited in court to cover fees and e"enses incurred $y a""roved liuidator or @> r.7() court s#all not dismiss or ad+ourn t#e "etition of any "etitioner w#o #as not "rior to t#e date of t#e #earing attended $efore t#e registrar

2

7156C91 MDF %5 7200=9 2 MDF 12

2C

Pre"ared $y Gita >ad#a(ris#na

12


r.7 w#en order for winding u" is made t#e "etitioner / 8olicitor s#all fort#wit# inform t#e liuidator in Jor 16 and wit#in 1= days gaette and advertise in 3orm 12 t#e ma(ing of t#e order and serve t#e order on t#e liuidator! @> and >@) r.7() a co"y of t#e winding u" order under $.&() s#all $e served on t#e secretary of t#e com"any eit#er "ersonally or $y "re"aid letter at t#e registered office or last (nown "lace of $usiness of t#e com"any. r.7(7) t#e winding u" order in 3orm 11 s#all contain a footnote stating t#at it s#all $e t#e duty of t#e "erson at t#e time or secretary or c#ief officer of t#e com"any to "rovide a 8tatement of 4ffairs to t#e liuidator.

Birector of a )om"any in Diuidation is ;ot a Party to Diuidation! rules )ourt K"itun M"r9#tin* Sdn >d ; >ou$t#"d E+dr#d Sdn >d

)ivil 4""eal ;o. 02&=C&2006-E* +udgment of 1/0C/2005 -3ederal )ourt 1

O T#e real issue at t#e #eart of t#is a""eal is w#et#er sanction may $e granted $y t#e Birector General of Insolvency to a former director of a com"any in liuidation w#o is also not a contri$utory or creditor to use t#e name of t#e com"any to $ring! continue or defend an action.

2

O @nce a limited com"any is wound u"! its assets and lia$ilities vest in t#e liuidator. It is u" to #im to decide w#et#er to institute! continue t#e "rosecution of or defend legal "roceedings. owever! t#ere is +urisdiction in t#e court to aut#orie ot#er "ersons to conduct litigation in t#e name of t#e com"any.

%

O >esort to t#e courts "ower to aut#orie someone ot#er t#an t#e liuidator to institute! continue or defend "roceedings only arises w#ere t#e liuidator refuses to do so and declines aut#ority. ut w#ere t#e liuidator grants aut#oriation! t#ere is no necessity to move t#e court. @nce aut#ority is given eit#er $y t#e liuidator or $y t#e court! t#e "erson aut#oried may a""oint counsel of #is or #er c#oice to "rosecute t#e "roceedings in uestion. T#e only issue is w#et#er it is com"etent for t#e liuidator to aut#orie a former director of t#e com"any in liuidation to use t#e com"anys name to commence! continue or defend "roceedings.

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8ince a director! or more a""ro"riately a former director! of a com"any in liuidation is not a "arty to t#e liuidation a court will not aut#orie #im or #er to launc# or to continue "roceedings or indeed to defend t#em. 0 fortiori! t#e liuidator #as no "ower to confer suc# aut#ority! since #e cannot do w#at t#e court will not do on #is default 4 liuidator w#o wis#es to a""oint an advocate and solicitor to "rosecute! continue or defend an action $y or against t#e com"any in liuidation may do so under section 2%-2-a of t#e )om"anies 4ct wit#out t#e leave of t#e court or t#e committee of ins"ection.

88M secures )onviction against an(ru"t Birector T#e Nuala Dum"ur 8essions court #as convicted ulurin Merican in ag#lul Merican! a com"any director! for committing an offence under section 12<-1 of t#e )om"anies 4ct 15<. e #ad acted as a director of a com"any w#ilst still an undisc#arged $an(ru"t. e "leaded guilty to t#e c#arge and was sentenced to a fine of >M!000 -= mont#s im"risonment in default. 8ection 12<-1 of t#e )om"anies 4ct 15< "rovides t#at Hevery "erson w#o $eing an undisc#arged $an(ru"t act as director of! or directly or indirectly ta(es "art in or is concerned in t#e management of! any cor"oration ece"t wit# t#e leave of court s#all $e guilty of an offence against t#is 4ct. T#e )om"any and one of its director were fine a total of >M1%!=00 for committing 11 offences under t#e )om"anies 4ct 15<. MD4 >eference ;o: MD4&100<10&;&12* 8ource-s: ernama* Bate-s of Pre"ared $y Gita >ad#a(ris#na

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Pu$lication: 22/0=/10* @riginal Title-s: )om"any and Birector convicted for @ffences under )om"anies 4ct -ernama! 22/0=/10* M"+"4$i" >ui+din* Soci#t4 >d V. M#rit Ai Sdn >d ? AnorF C"#ron M"++ Sdn >d ? Anor (Int#r;#n#r$)2C = L@ 61  CLB &% )#argor in liuidation & E#et#er c#arged "ro"erty could $e sold $y "rivate treaty after a$ortive auctions  )#argee entered into "rivate treaty wit# )ameron for sale at 12m and )ameron "aid 1m. 4ctive >#yt#m entered into 8P4 directly wit# BGI for 1%m. 4mount due to c#argee under @rder for 8ale almost t#rice redem"tion sum it uoted to facilitate "rivate sale & E#et#er c#argee?s acce"tance of smaller sum would adversely affect ot#er creditors and contri$utories & E#et#er amounted to com"romise or arrangement reuiring sanction of court & E#et#er "ro"erty s#ould $e auctioned according to "rocedure "rescri$ed in ;ational Dand )ode & )om"anies 4ct 15M12m for redem"tion! M8 was entering into a com"romise or arrangement to t#e detriment of ot#er creditors and contri$utories. eing a com"romise or arrangement $etween t#e liuidator and M8! any failure to o$tain leave of court under s. 2%-1 -c of t#e )om"anies 4ct 15< would render t#e sale void. BGI as t#e liuidator could not "roceed wit# t#e sale $y way of "rivate treaty wit# 4ctive >#yt#m. 4 com"romise #ad $een effected wit#out t#e court?s a""roval under s. 2%-1-c of t#e )om"anies 4ct. T#ere was not#ing to "revent c#arger from a""lying for anot#er date for a "u$lic auction sale wit# a reduction! "er#a"s! of anot#er 10Q from t#e last reserve "rice. -"aras % ' =< 4ll monies "aid $y 4ctive >#yt#m to BGI $e refunded* all caveats lodged on land $y )ameron Mall and 4ctive >#yt#m $e removed.


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TUTORIAL 11 UESTION 1

@n < Fan. 2006  an( o$tained final +udgment against Mayflower 8/ for t#e sum of >M=<0!000 in t#e ig# )ourt of Mela(a. @n 1< Marc#. 2006 8olicitors for  an( issued a s.216 )4 15< statutory ;otice signed $y t#em to Mayflower 8/ at t#eir registered address w#ic# was t#e office of Mayflower 8/s )om"any 8ecretary. Mayflower 8/ did not res"ond to t#e said ;otice. @n 20 4"ril 2006 8olicitors for  an( "resented a Einding u" "etition signed $y one )8 a c#am$ering student in t#e firm of  an(s 8olicitors w#o was #andling t#e matter and a su""orting affidavit affirmed $y one D@ a Degal @fficer of  an( dated 2< 4"ril 2006. Mayflower 8/ o""osed t#e "etition on t#e grounds t#at:& -i it was defective as t#e affidavit was filed out of time. -ii T#e signature in t#e "etition and affidavit was not consistent -iii )8 was not an aut#oried signatory of  an( 4dvise  an(.

UESTION 

8ometime in Fune 2006 P was a""ointed as > 8/s ->8 su$&contractor in a "ro+ect. P on >8s reuest commenced wor(s immediately alt#oug# t#e "arties #ad not agreed u"on t#e su$&contract "rice. P "resented "rogressive claims for wor( underta(en on %0 8e"t. 2006! %0 @ct. 2006 and %0 ;ov. 2006 totaling a sum of >M 1.2 million w#ic# >8 dis"uted. owever on 1< Fan. 2005 P served a s.216 )4 15< statutory notice at >8s office and as t#ere was no res"onse to t#e same P "roceeded to "resent a "etition to wind u" > on 20 3e$. 2005 w#ic# was again served at >8s office. T#e #earing is sc#eduled on t#e 1 4"ril 2005. >8 dis"utes t#e claim and see(s your advice.

UESTION 7

P #ad granted credit facilities to one R 8/ -R8 in Malaysia as well as to its associate com"any 48) in 8inga"ore. @n 15 May 1556 P o$tained +udgment at t#e Mela(a ig# )ourt against R8 for t#e sum of >M1.< million wit# interest and costs. 8u$seuent to t#e +udgment R8 negotiated re"ayment terms wit# t#e P w#ere$y t#e $enefit granted to 48) in 8inga"ore in t#e form of % $ills of ec#ange would $e utililsed towards t#e re"ayment of R8s +udgment de$t. owever t#e $ills of ec#ange were dis#onoured. P sued 48) in 8inga"ore for t#e recovery of all sums due under t#e facilities granted to it w#ic# included t#e % $ills of ec#ange and o$tained +udgment against 48) in 8inga"ore. 48) negotiated a settlement sc#eme wit# P. Meanw#ile on 22 3e$. 200C an order for t#e winding u" of R8 was made at t#e ND ig# )ourt and P lodged its "roof of de$t wit# t#e liuidator for t#e +udgment sum. owever u"on a director of R8 informing t#e Diuidator t#at Ps claim #ad $een satisfied t#e Diuidator re+ected t#e "roof of de$t. @n Pre"ared $y Gita >ad#a(ris#na

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16 4"ril 2005 P a""ealed to t#e Mela(a ig# )ourt on t#e Diuidators re+ection of its "roof of de$t. R8 contends t#at:& -i t#ere was accord and satisfaction of t#e +udgment sum t#roug# t#e settlement reac#ed wit# 48) in 8inga"ore* -ii no arrears of interest could $e claimed as it was now statute $arred under s.  of t#e Dimitation 4ct. 4dvice P


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L9. Winding Up

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