On 9 July 2024, the Federal Court in Abdul Rashid Mohamad Isa v PTT International Trading Pte Ltd [2024] 5 MLRA 603 (“Abdul Rashid”), with a panel comprising Nallini Pathmanathan FCJ, Hasnah Mohammed Hashim FCJ and Abdul Karim Abdul Jalil FCJ, held inter alia that a Creditor’s Petition could be withdrawn without the consequences of bringing the entire bankruptcy proceedings to an end. Hurry Up

The Companies (Amendment) Bill 2023 (“Bill”) was passed by the Dewan Rakyat (House of Representatives) of the Malaysian Parliament on 28 November 2023. It will be tabled before the Dewan Negara (Senate) and if passed, will be presented for Royal Assent and be gazetted into law.

Following the amendments made to the Insolvency Act 1967 (“IA 1967”) pursuant to the Insolvency (Amendment) Act 2023 (“Amendment Act”) which came into force on 6 October 2023, the Minister in the Prime Minister's Department (Law and Institutional Reform) (“Minister”) had issued the Insolvency (Amendment) Rules 2023 [P.U.

On 1 April 2024, the Companies Commission of Malaysia issued the Guidelines for the Adjudication of Proof of Debts under section 369B of the Companies Act 2016 (“the Guidelines”).

In the recent decision in N.Chanthiran a/l Nagappan v Kao Che Jen [2023] 5 MLRA 247, the Federal Court had the occasion to put to rest, the question of whether leave of court is required for the commencement of proceedings against a court appointed liquidator. In this regard, the Federal Court clarified that leave of court is indeed required.

Brief Facts

Prequel

In the recent case of Genisys Integrated Engineers Pte Ltd v UEM Genisys Sdn Bhd & Ors [2023] 3 MLJ 627, the Federal Court had the occasion to consider whether the Limitation Act 1953 applies to a proof of debt. The Federal Court held that the Limitation Act 1953 does not apply to a proof of debt which is accepted and not formally rejected by a liquidator.

Background Facts

The Insolvency (Amendment) Bill 2023 (“Bill”) was passed by the Dewan Rakyat on 24 May 2023. It will next be tabled before the Dewan Negara. Once passed, the Bill will be cited as the Insolvency (Amendment) Act 2023 (“Amendment Act”) and will come into operation on a date to be appointed by the Minister in the Prime Minister's Department (Law and Institutional Reform) (“Minister”) by notification in the Gazette.

In the recent case of MDSA Resources Sdn Bhd v Adrian Sia Koon Leng [2023] 3 CLJ 191 the Court of Appeal upheld the High Court decision in, among others, dismissing the Appellant’s application for sanction of a scheme of arrangement made pursuant to section 366(4) of the Companies Act 2016 (“CA 2016”).

Background Facts

The High Court has recently granted Sapura Energy Bhd and its 22 subsidiaries (“Sapura Entities”) a fresh order to hold court-convened meetings with creditors within a period of three months. A restraining order was also granted for the same period. By now, the Sapura Entities would have been granted 3 restraining orders which stretches out to a total period of 15 months.