PUBLIC BANK BERHAD v PROLIFIC PROPERTIES SDN. BHD. (dalam likuidasi)

ma-24fc-89-05-2025 High Court (Mahkamah Tinggi) 5 April 2026 • MA-24FC-89-05/2025

Catchwords

Land law — Charge — Order for sale — Application under ss 254, 256 and 257 National Land Code 1965 — Chargor company in liquidation — Whether chargee entitled to enforce security — Scope of inquiry in charge proceedings — Whether court to adjudicate full accounting of debt — Nature of s 256 proceedings — Whether “cause to the contrary” established. Land law — Charge — Form 16D — Validity of statutory notice — Amount stated in notice — Alleged excessive interest — Whether defect in quantum renders notice invalid — Whether dispute on quantum constitutes cause to the contrary — Order 83 Rules of Court 2012 — Requirements of supporting affidavit. Company law — Winding up — Secured creditor — Right to realise security — Section 524 Companies Act 2016 — Effect of winding up on secured creditor’s rights — Whether secured creditor barred from enforcing charge — Six months interest rule — Whether applicable at enforcement stage or post-realisation — Duty to account for surplus. Banking — Loan facility — Charge over land — Default — Certificate of indebtedness — Conclusive evidence clause — Whether debtor entitled to challenge amount without affidavit evidence — Burden of proof — Allegation of manifest error — Whether submissions from bar sufficient. Civil procedure — Originating summons — Charge action — Evidential threshold — Affidavit evidence — Whether new allegations raised only in submissions admissible — Distinction between pleaded evidence and submissions — Whether triable issue arises. Practice and procedure — “Cause to the contrary” — Meaning and scope — Whether includes disputes on interest computation — Whether includes ongoing restructuring proposals — Whether liquidation or potential scheme sufficient to restrain order for sale — Approach of court to secured creditor’s enforcement rights.

Practice Areas

Land law Company law Civil procedure

Judges (1)

Raja Segaran a/l S.krishnan Delivered

Parties (2)

PROLIFIC PROPERTIES Sdn Bhd. (dalam likuidasi) Respondent PUBLIC BANK BERHAD Applicant

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (ma-24fc-89-05-2025)