1. ) KHOO SIEW KIAT 2. ) GOH HUA YANG EDDIE v UNIVERSAL CABLE (M) BERHAD (IN LIQUIDATION) PENCELAH 1. ) OCBC Bank (M) Berhad 2. ) OCBC Al-Amin Bank Berhad 3. ) CIMB Bank Berhad 4. ) Malayan Banking Berhad 5. ) Maybank Islamic Berhad PIHAK TERKILAN 1. ) JULANG MANUFACTURE ENTERPRISE SDN. BHD. 2. ) ELECTRICAL INDUSTRY WORKERS UNION 3. ) Hong Leong Islamic Bank Berhad

wa-28pw-525-09-2024 High Court (Mahkamah Tinggi) 23 July 2025 • WA-28PW-525-09/2024 • 44 min read

22 cases cited (0 SG, 22 foreign)

Catchwords

Applicability of Section 31 EA 1955 – Provides employees priority for wages over secured creditors in specific court-ordered sales or receiverships – Whether the statutory priority for wages under Section 31 of the Employment Act 1955 applies when a liquidator sells an unencumbered place of employment via private treaty. Statutory Limits on Employee Claims – If Section 31 were applicable, whether the priority for employee payments would be capped at four months' wages while leaving other benefits (termination, leave, etc.) unlimited (1(b)). Classification of Termination Benefits – Whether termination and lay-off benefits for contracts continued or entered into after the commencement of winding up constitute "costs and expenses of the winding up" under Section 527(1)(a) of the Companies Act 2016 (1(c), 2(iii)) – Section 527 CA 2016 – Defines the priority of payments in a winding up; differentiates between "costs and expenses" (1)(a) and "preferential debts" (1)(b). Discharge of Employees by Operation of Law – Whether a compulsory winding up order acts as an automatic notice of discharge to all employees and under what specific factual circumstances that notice is considered "waived" by a liquidator – Liquidator's Powers – Specifically those under the Twelve Schedule of the Companies Act 2016, allowing the sale of assets and carrying on of business

Judges (1)

Mohd Arief Emran bin Arifin Delivered

Parties (11)

CIMB BANK BERHAD Intervener Hong Leong Islamic Bank Berhad Aggrieved Party JULANG MANUFACTURE ENTERPRISE Sdn Bhd Aggrieved Party MALAYAN BANKING BERHAD Intervener MAYBANK ISLAMIC BERHAD Intervener OCBC AL-AMIN BANK BERHAD Intervener OCBC Bank Berhad Intervener UNIVERSAL CABLE BERHAD (IN LIQUIDATION) Respondent Electrical Industry Workers Union Aggrieved Party Goh Hua Yang Eddie Applicant Khoo Siew Kiat Applicant

Statutes Cited

Australian Companies Act

s 213 s 216

Australian Companies Act 1958

s 216

Companies Act

s 527(1)(a) s 527(1)(b)

Companies Act 1958

s 216

Companies Act 1965 (Cap 777)

s 233 s 236(1) s 236(2) s 236(2)(c)

Companies Act 2016 (Cap 777)

Employment Act

s 31

Employment Act 1955 (Cap 265)

s 31

Federal Constitution

Labour and Industry Act

s 156

Cases Cited (22)

UK (2)

[1918] 1 KB 592 [1976] AC 167

MY (20)

[1985] 2 MLJ 446 [2003] 5 CLJ 1 [2006] 2 CLJ 757 [2006] 4 CLJ 195 [2006] 6 MLJ 97 [2007] 7 CLJ 516 [2015] 7 CLJ 16 [2017] 6 MLJ 661 [2020] 4 CLJ 535 [2020] 4 MLJ 288 [2020] 4 MLJ 721 [2020] 7 CLJ 561 [2021] 1 CLJ 631 [2021] 2 CLJ 441 [2021] 2 MLJ 60 [2021] 8 CLJ 409 [2022] 1 CLJ 331 [2023] 5 MLJ 284 [2025] 5 CLJ 46 [2025] 6 CLJ 210

Judgment

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Source: eJudgment (wa-28pw-525-09-2024)