CLASSIC MARITIME INC v 1. ) LION DIVERSIFIED HOLDINGS BERHAD (DALAM LIKUIDASI) 2. ) Benapro Sdn. Bhd.

w-02a-1956-10-2022 Court of Appeal (Mahkamah Rayuan) 6 March 2025 • W-02(A)-1956-10/2022 • 29 min read

9 cases cited (0 SG, 9 foreign)

Catchwords

Setting aside decision of a liquidator to sell assets of a company; allegation of undervalue; approval of court under section 487(3) of the Companies Act 2016; whether section 517 may be used to set aside a prior order of court granted under section 487(3).

Practice Areas

Judges (3)

Azizah binti Haji Nawawi Coram Azizul Azmi bin Adnan Delivered Mohd Firuz bin Jaffril Coram

Counsel (11)

Dennis Nik & Wong Firm Rahmat Lim & Partners Firm Sanjay Mohan Firm Chai Zhe Karn Counsel Appellant Choon Hon Leng Counsel Respondent Foong Kar Yee Counsel Respondent Goik Kenwayne Counsel Respondent Rodney Gan Counsel Respondent Sanjay Mohan Counsel Respondent Tan Chuan Yi Counsel Appellant Yap Yeow Han Counsel Appellant

Parties (3)

Benapro Sdn Bhd Respondent CLASSIC MARITIME INC Appellant LION DIVERSIFIED HOLDINGS BERHAD (DALAM LIKUIDASI) Respondent

Case Significance

CLASSIC MARITIME INC v 1. ) LION DIVERSIFIED HOLDINGS BERHAD (DALAM LIKUIDASI... is a Court of Appeal (Mahkamah Rayuan) decision dated March 6, 2025 (citation: w-02a-1956-10-2022). <p>Classic Maritime Inc, a majority creditor owed over RM440 million by Lion Diversified Holdings Berhad (in liquidation), sought to set aside the liquidator's decision to sell equity interests in subsidiary Banting Resources to a related party at an alleged undervalue of RM42.2 million. The Court of Appeal dismissed the appeal, holding that the High Court judge was functus officio after granting the original sale approval order, and that the proper course should have been to appeal against that The panel comprised Azizah binti Haji Nawawi, Azizul Azmi bin Adnan and Mohd Firuz bin Jaffril, with Azizul Azmi bin Adnan delivering the judgment.

Summary

Classic Maritime Inc, a majority creditor owed over RM440 million by Lion Diversified Holdings Berhad (in liquidation), sought to set aside the liquidator's decision to sell equity interests in subsidiary Banting Resources to a related party at an alleged undervalue of RM42.2 million. The Court of Appeal dismissed the appeal, holding that the High Court judge was functus officio after granting the original sale approval order, and that the proper course should have been to appeal against that order rather than invoking Section 517 of the Companies Act 2016.

What was the outcome of CLASSIC MARITIME INC v 1. ) LION DIVERSIFIED HOLDINGS BERHAD (DALAM LIKUIDASI...?

<p>Classic Maritime Inc, a majority creditor owed over RM440 million by Lion Diversified Holdings Berhad (in liquidation), sought to set aside the liq...

Statutes Cited

Companies Act

s 517

Companies Act 2016 (Cap 777)

s 472 s 484 s 487(3) s 517

Courts of Judicature Act 1964 (Cap 91)

Trustees and the Executors Act

s 45

Cases Cited (9)

MY (9)

[1998] 1 MLJ 393 [1998] 2 CLJ 75 [2012] 2 CLJ 501 [2012] 2 MLJ 713 [2015] 7 CLJ 16 [2019] 5 AMR 817 [2022] 10 CLJ 503 [2022] 6 MLJ 888 [2022] 8 AMR 1