AVENUE GARDEN HOTEL SDN BHD (IN LIQUIDATION) v SINARAN ARMADA SERI SDN BHD

ba-28pw-170-07-2024 High Court (Mahkamah Tinggi) 17 November 2025 • BA-28PW-170-07/2024

Catchwords

Whether the Court is functus officio and lacks jurisdiction to hear Enclosure 1-Whether Enclosure 1 ought to be struck out as frivolous, vexatious, or an abuse of process under Order 18 rule 19 ROC-Whether these proceedings should be stayed pending the disposal of Suit 532- The Insolvency Court retains supervisory jurisdiction to make orders necessary for the proper administration of the estate-Enclosure 1 seeks reliefs that are integrally tied to the Liquidator’s duties. It does not seek to reopen the merits of any previous litigation nor to adjudicate individual rights inter partes unrelated to the liquidation- It is therefore properly before this Court- Liquidator’s application raises genuine issues concerning the administration of the winding-up and the potential dissipation or improper dealing of assets- Liquidator appears to be acting within the bounds of his statutory mandate- the issue of preference overlaps with Suit 532 and that concurrent proceedings may result in contradictory findings- The present application arises within the insolvency regime and concerns the protection of the estate for creditors- A stay would not be justified where the statutory machinery of liquidation requires progress- Whether Company was insolvent at the material time- Section 528 places attention to commercial insolvency, not balance-sheet insolvency- statutory elements of Section 528 are met-the payment was made to a creditor, within the six-month window, at a time when the Company was commercially insolvent-the effect of the payment was to prefer that creditor over the general body of creditors, the creditor having notice of the Company’s financial state.

Practice Areas

Civil Procedure Company Law

Judges (1)

Raja Rozela binti Raja Toran Delivered

Parties (2)

AVENUE GARDEN HOTEL Sdn Bhd (IN LIQUIDATION) Applicant SINARAN ARMADA SERI Sdn Bhd Respondent

Judgment

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Source: eJudgment (ba-28pw-170-07-2024)