QUBE INTEGRATED MALAYSIA SDN. BHD. v ANGGUN DINAMIK HOLDINGS SDN. BHD.
Catchwords
This case concerns an application under s 580A of the Companies Act 2016 for security for costs of RM100,000.00 against a wound-up company prosecuting a Counterclaim arising from alleged trespass, detinue, and wrongful use of kitchen equipment valued at approximately RM1.4 million. Applying the two-stage inquiry in Skrine & Co v MBF Capital Bhd, the Court accepted that the winding-up order satisfied the first stage threshold but dismissed the application in the exercise of its discretion. Determinative factors included the bona fides of the Counterclaim as affirmed by two prior courts, the manifestly disproportionate and unparticularised quantum sought, an inference that the application was deployed to stifle a genuine claim given the aggressive litigation conduct and subsequent withdrawal of its own claim, the availability of set-off against equipment held. The potential prejudice to the creditors and the absence of evidence that the director-contributory could not satisfy any adverse costs order. Security for costs · s 580A Companies Act 2016 · wound-up company · creditor prejudice · contributory · Skrine two-stage inquiry · Sir Lindsay Parkinson factors
Judges (1)
Judgment
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Read on eJudgmentSource: eJudgment (wa-22ncvc-680-11-2025)