1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KANDIAH v 1. ) N THANAVATHY A/P RAJAH 2. ) KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA

j-01a-408-07-2023 Court of Appeal (Mahkamah Rayuan) 28 April 2025 • J-01(A)-408-07/2023 • 31 min read
7 cases cited (0 SG, 7 foreign)

Catchwords

Application to remove a liquidator- winding up Order- directors of company- Director General of Insolvency- Pre action Discovery- Companies Act 2016- dissolution within the reasonable time- general duties of liquidator- list of the contributors- liquidator’s licence- Whether the removal of the liquidator on the ground that he had no valid license is justified or warranted- sole shareholder- Whether the application to remove the liquidator must be supported by all the contributories and creditors- Whether all the creditors were served with the notice of the application- discharge of duties with sufficient promptitude- liquidator must act fairly and impartially in administering the liquidation-"condition" of obtaining support -cause shown - creditors’ claims take priority over contributories

Practice Areas

Application to remove a liquidator- winding up Order- directors of company- Director General of Insolvency- Pre action Discovery- Companies Act 2016- dissolution within the reasonable time- general duties of liquidator- list of the contributors- liquidator’s licence- Whether the removal of the liquidator on the ground that he had no valid license is justified or warranted- sole shareholder- Whether the application to remove the liquidator must be supported by all the contributories and creditors- Whether all the creditors were served with the notice of the application- discharge of duties with sufficient promptitude- liquidator must act fairly and impartially in administering the liquidation-"condition" of obtaining support -cause shown

Judges (3)

Ahmad Zaidi bin Ibrahim Coram Alwi bin Abdul Wahab Delivered Azizul Azmi bin Adnan Coram

Counsel (5)

Aida & G Ravi Firm Mohanadass Partnership Firm Aida Hassan Counsel Respondent Brenda Rangithan Counsel Appellant G. Ravi Counsel Respondent

Parties (4)

KETUA PENGARAH JABATAN INSOLVENSI MALAYSIA Respondent MAJIDEE PARK AUTO SPARES & SERVICES Sdn Bhd Appellant Jayapalasingam a/l Kandiah Appellant N Thanavathy a/p Rajah Respondent

Case Significance

1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KAND... is a Court of Appeal (Mahkamah Rayuan) decision dated April 28, 2025 (citation: j-01a-408-07-2023). <p>This appeal concerned the removal of a liquidator from a company in winding-up (Majidee Park Auto Spares & Services Sdn Bhd). The key issue was whether the High Court was correct in finding that the liquidator failed to discharge his duties with sufficient promptitude and lacked a valid licence. The Court of Appeal allowed the appeal and set aside the removal order, finding the liquidator's actions were reasonable given obstructive creditors and lack of cooperation.</p> The panel comprised Ahmad Zaidi bin Ibrahim, Alwi bin Abdul Wahab and Azizul Azmi bin Adnan, with Alwi bin Abdul Wahab delivering the judgment. Counsel appearing: Aida Hassan (counsel for respondent), Brenda Rangithan (counsel for appellant), G. Ravi (counsel for respondent).

Summary

This appeal concerned the removal of a liquidator from a company in winding-up (Majidee Park Auto Spares & Services Sdn Bhd). The key issue was whether the High Court was correct in finding that the liquidator failed to discharge his duties with sufficient promptitude and lacked a valid licence. The Court of Appeal allowed the appeal and set aside the removal order, finding the liquidator's actions were reasonable given obstructive creditors and lack of cooperation.

What was the outcome of 1. ) MAJIDEE PARK AUTO SPARES & SERVICES SDN BHD 2. ) JAYAPALASINGAM A/L KAND...?

<p>This appeal concerned the removal of a liquidator from a company in winding-up (Majidee Park Auto Spares & Services Sdn Bhd). The key issue was whe...

Statutes Cited

Companies Act 2016 (Cap 777)
s 482(b)
Insolvency Act 1986
s 172(1)

Cases Cited (7)

MY (7)
[1979] 2 MLJ 156 [1996] 3 CLJ 86 [2006] 3 CLJ 360 [2006] 7 MLJ 28 [2007] 2 MLJ 12 [2013] 2 MLJ 629 [2013] 3 CLJ 17