NUTRI DATES SDN BHD v 1. ) SYARIKAT ABDUL GHAFFAR TRADING SDN BHD 2. ) ABDUL MALICK BIN M ABD GHAFFAR 3. ) ABDUL GAFFAR BIN ABDUL MALICK
Catchwords
- Section 540 Companies Act – claim by Plaintiff against Directors of a company for debts of the company. - Issues – a) whether the terms of the sales contracts bind the Directors b) whether the Directors are liable to pay the Plaintiff the outstanding sum owed by the company c) whether the conduct of the Plaintiff in withdrawing the claim against the company which has since been wound up with no proof of debt filed renders the claim against the Directors fatal as the debt itself has not been proven. - Held - a) there is no pre-condition in Section 540 that the debt against the company must first be proven. All that is required to invoke Section 540 is the intend of the Directors to defraud creditors. b) On the fact of this case the Directors are found to not to be bound by the sales contracts. c) the Plaintiff has failed to prove that the Directors had no intention of paying the Plaintiff at the time the contracts were enter into especially since the company had paid a large portion of the debt. - Plaintiff’s claim dismissed with costs.
Practice Areas
Judges (1)
Judgment
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Read on eJudgmentSource: eJudgment (pa-22ncc-12-02-2024)