PUBLIC BANK BERHAD v 1. ) TAN PING HUANG EDWIN @ CHEN BINGHUANG 2. ) TAN JUNE TENG COLIN @ CHEN JUNTING 3. ) MDSA DEVELOPMENT SDN. BHD. (DAHULUNYA DIKENALI SEBAGAI FUYUU DEVELOPMENT SDN. BHD.)
Catchwords
Insolvency Law — Bankruptcy — Foreign bankruptcy — Singapore bankruptcy orders — Reciprocal recognition — Section 104 Insolvency Act 1967 — Malaysian court acting in aid of Singapore court — Auxiliary jurisdiction — Whether Malaysian court empowered to grant leave to continue proceedings against Singapore bankrupts. Insolvency Law — Bankruptcy — Cross-border insolvency — Certified Singapore bankruptcy orders — Effect of section 104(5) Insolvency Act 1967 — Conclusive proof of foreign adjudication — Distinction between evidentiary recognition and domestic bankruptcy order. Insolvency Law — Bankruptcy — Proceedings against bankrupt — Section 8(1)(a) Insolvency Act 1967 — Leave to continue action against bankrupt — Whether leave required where bankruptcy adjudged in Singapore — Scope and application of statutory restraint. Insolvency Law — Bankruptcy — Debt provable in bankruptcy — Creditor’s claim under guarantees — Fixed loan facility — Contractual indebtedness — Sections 2 and 40 Insolvency Act 1967 — Whether claim constituted provable debt. Insolvency Law — Bankruptcy — Leave to continue proceedings — Nature of discretion — Factors governing exercise of discretion — Nature of claim — Balance of convenience — Justice of case — Application of principles in BBMB Securities Sdn Bhd v Tan Lay Hiong & Ors. Insolvency Law — Bankruptcy — Pari passu principle — Continuation of proceedings — Leave granted subject to restriction on enforcement — Judgment creditor confined to proof of debt in bankruptcy estate — Protection of general body of creditors. Insolvency Law — Bankruptcy — Foreign bankrupts — Singapore trustees in bankruptcy — Service on trustees — Unopposed application — Court’s duty to satisfy itself of statutory requirements notwithstanding absence of opposition. Insolvency Law — Bankruptcy — Reciprocal insolvency assistance — Comity between Malaysian and Singapore courts — Meaning and effect of acting “in aid of and auxiliary to” foreign insolvency proceedings. Banking Law — Loan facility — Fixed loan facility — Borrower in liquidation — Guarantees — Action against guarantors — Recovery of outstanding indebtedness. Banking Law — Guarantees — Guarantors adjudged bankrupt — Creditor’s right to proceed against guarantors — Co-extensive liability of guarantor and principal debtor. Civil Procedure — Leave to continue proceedings — Action commenced prior to bankruptcy — Supervening bankruptcy during pendency of action — Whether proceedings may continue to judgment. Civil Procedure — Jurisdiction — Proper forum — Malaysian proceedings involving foreign bankrupts — Whether leave should be sought in Malaysia or Singapore — Court seized of action as proper forum. Civil Procedure — Judgment in default — Corporate guarantor — Judgment already entered against co-defendant — Relevance to continuation of proceedings against individual guarantors. Civil Procedure — Restoration of proceedings — Interlocutory applications adjourned due to bankruptcy — Leave granted to continue action — Directions restoring pending applications for hearing. Costs — Application for leave under section 8(1)(a) Insolvency Act 1967 — Unopposed application — Whether costs should be borne by bankrupt estates — No order as to costs.
Practice Areas
Judges (1)
Judgment
Read the full judgment on the official Malaysia Courts portal.
Read on eJudgmentSource: eJudgment (ma-22ncc-7-04-2025)