KELUARGA UTAMA SDN. BHD. (In Liquidation) v PUBLIC BANK BERHAD
Catchwords
Insolvency set-off — Bank’s contractual right of set-off preserved notwithstanding liquidation — Relevant transaction is underlying loan agreement predating winding-up — Not date of set-off — Mutual dealings established where company indebted under loan and bank indebted for account balance — Companies Act 2016, s 526 — Set-off not an undue or fraudulent preference — Pari passu rule subject to statutory exception — Sime Diamond Leasing (Malaysia) Sdn Bhd v JB Precision Moulding Industries Sdn Bhd followed. Banking law — Banker–customer relationship — Right to combine and consolidate accounts — Set-off clause operative post-liquidation — Seven-day notice requirement satisfied by contractual deeming provision — Proof of posting sufficient. Company law — Winding-up — Effect of notice — Creditor’s knowledge after debt became due does not bar set-off — Companies Act 2016, s 526(3).
Practice Areas
Judgment
Read the full judgment on the official Malaysia Courts portal.
Read on eJudgmentSource: eJudgment (wa-24ncc-68-02-2024)