SUPREME POWER AUTO Sdn Bhd

On the court record

Illustrates how the courts determine insurance-indemnity claims after trial, apply the banking-recovery and guarantee regimes to a defaulting borrower, and operate the scheme-of-arrangement machinery under the Companies Act 2016.

Supreme Power Auto Sdn Bhd appears in this corpus as a motor-trade business, in roles including plaintiff, defendant, third party and applicant, with matters decided in the High Court. A distinctive strand consists of insurance claims brought by the company as insured against several insurers after trial, seeking indemnity for loss and damage, where the court determines liability under the policies — a group of connected actions against different insurers arising from the same or similar loss. A second strand concerns banking recovery: an action by a lender for the recovery of debt under term-loan facilities and the enforcement of the guarantees securing them, in which the company is a defendant. The corpus also engages corporate rescue and restructuring, including an application under sections 366 and 368 of the Companies Act 2016 for leave to convene a creditors' meeting to consider a proposed scheme of arrangement, a procedure by which a company in financial difficulty seeks to compromise its debts with the sanction of the court. Because the company appears both as a claimant pursuing its insurers and as a party answering recovery and participating in restructuring, the decisions reflect the several capacities in which a trading company is drawn into insurance, banking and insolvency litigation. The matters are decided in the High Court. Collectively the decisions in which Supreme Power Auto is a party illustrate how the courts determine insurance-indemnity claims after trial, apply the banking-recovery and guarantee regimes to a defaulting borrower, and operate the scheme-of-arrangement machinery under the Companies Act 2016 for a company seeking to restructure its debts. Several of the reported matters also concern the burden on an insured to prove its loss at trial and the insurer's defences to indemnity, and the conditions on which the court will sanction the convening of a creditors' meeting for a proposed compromise. Across these decisions the company appears in the several capacities a trading business occupies when it pursues its insurers, answers its lenders and seeks to restructure its debts.