Dato’ Gan Ah Tee Likuidasi untuk Lingkaran Luar Butterworth (Penang) Sdn Bhd (Dalam Likuidasi) PENCELAH IJM CONSTRUCTION SDN BHD PIHAK TERKILAN 1. ) Bank Kerjasama Rakyat Malaysia Berhad 2. ) Bank Pembangunan Malaysia Berhad 3. ) CIMB Bank Berhad 4. ) Hong Leong Bank Berhad

ba-28pw-191-07-2024 High Court (Mahkamah Tinggi) 8 January 2026 • BA-28PW-191-07/2024 • 1 min read

Catchwords

Summons for directions-the entitlement of the secured creditors to claim interest after the making of the winding-up order- whether the sum received from the Government of Malaysia forms part of the secured assets of the Financiers or is available to the general estate- whether, by operation of section 524(3)(b) CA 2016 read with section 8(2A) of the Insolvency Act 1967 (“IA 1967”) and section 4 of the Civil Law Act 1956 (“CLA 1956”), the Financiers are entitled to interest accruing after 29 August 2018- whether the Judgment Sum is subject to the security interests of the Financiers or forms part of the unencumbered assets of the Company-Section 524(3)(b) CA 2016, read together with section 8(2A) IA 1967, provides that a secured creditor who does not realise its security within the stipulated period is not entitled to interest accruing after the winding-up order- the provision does not confer a discretion on the Court-it imposes a statutory consequence- winding-up order therefore remained effective in law from 29 August 2018, notwithstanding the stay orders- It is unnecessary to determine whether there was any temporal gap between the various stay orders-even if the stays were continuous, they do not affect the operative date of the winding-up order for the purposes of section 524(3)(b)- The Financiers did not realise their security within the statutory period. Accordingly, by operation of section 524(3)(b) CA 2016 read with section 8(2A) IA 1967 and section 4 CLA 1956, interest ceased to accrue thereafter- the Judgment Sum became part of the credit balance of an assigned Project Account and therefore forms part of the secured assets of the Financiers- The Syndicated Financiers and Bank Pembangunan Malaysia Berhad, whether in its capacity as a Syndicated Financier or as Government Support Loan Financier, are not entitled to interest accruing after 29 August 2018.-the Liquidator is directed to take an account of any post-winding-up interest charged or retained after that date and to make the necessary adjustments in accordance with law-the judgment sum forms part of the secured assets subject to the security interests of the Syndicated Financiers.

Practice Areas

Company Law Bankruptcy & Insolvency

Judges (1)

Raja Rozela binti Raja Toran Delivered

Parties (6)

BANK KERJASAMA RAKYAT MALAYSIA BERHAD Aggrieved Party Bank Pembangunan Malaysia Berhad Aggrieved Party CIMB BANK BERHAD Aggrieved Party Dato’ Gan Ah Tee Likuidasi untuk Lingkaran Luar Butterworth Sdn Bhd (Dalam Likuidasi) Applicant HONG LEONG BANK BERHAD Aggrieved Party IJM CONSTRUCTION Sdn Bhd Intervener

Judgment

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Source: eJudgment (ba-28pw-191-07-2024)