Brief background factsIn the case of Ler Cheng Chye & Anor v Wong Ching Yong & Ors [2020] 7 AMR 900, [2020] MLJU 1565, Darryl Goon J decided on the issues concerning a challenge to the role played by a receiver and manager, and the need to consider what a receiver and manager appointed over the assets and undertaking of a company may or may not do, upon the commencement of winding up proceedings of that company.

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In Re:Malaya Sibuku; Ex P: Kaya Karisma Sdn Bhd [2021] 5 CLJ 403, various submissions were advanced by a judgment debtor (“Debtor”) in an appeal against the Senior Assistant Registrar’s (“SAR”) decision in granting leave to the judgment creditor (“Creditor”) to commence bankruptcy proceedings against the Debtor.

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The Minister of Domestic Trade and Consumer Affairs issued the Prescription of Amount of Indebtedness of Company under Paragraph 466(1)(a) (Gazette Notification No. 4159/2021) stating that the amount of indebtedness for the purposes of section 466(1)(a) of the Companies Act 2016 shall be an amount exceeding RM50,000 with effect from 1 April 2021.

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This article examines the High Court's decision in AirAsia X Berhad v BOC Aviation Limited (Originating Summons WA-24NCC-467-10/2020).

Summary

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Another interesting case on schemes around the issue of insolvency. A judgment handed down yesterday by Snowden J in MAB Leasing Limited (a Malaysia Airlines leasing company) "parked" the issue of whether a Part 26 scheme (note, not a Part 26A plan) was an insolvency related event under the Cape Town Convention and Aircraft Protocol, as there was unanimous creditor consent. At the earlier convening hearing, Zacaroli J, without needing to decide the issue, stated that the company counsel's skeleton provided a "powerful case for concluding that the [Cape Town Convention] did not apply".

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What is clear is that the selection of creditors for the class composition cannot be arbitrary or capricious. If there is evidence of a calculated and dishonest move to remove or to place certain creditors in certain class with the purpose of ensuring that the class is constituted in such a way that certain creditors would not be able to vote or that their votes would be rendered ineffective, this will be considered as class manipulation or gerrymandering.”

per Judicial Commissioner Ong Chee Kwan.

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