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Insolvency Law Tutorial

This document contains 3 questions regarding bankruptcy law in Malaysia. Question 1 provides details of a bankruptcy notice served against an individual named D and asks to advise D on the merits of his application to set aside the bankruptcy notice. Question 2 asks whether 5 different individuals can have bankruptcy petitions issued against them based on various debt situations. Question 3 asks whether guarantors for loans and a hire purchase agreement can have bankruptcy proceedings taken against them if the primary debtor defaults.

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192 views2 pages

Insolvency Law Tutorial

This document contains 3 questions regarding bankruptcy law in Malaysia. Question 1 provides details of a bankruptcy notice served against an individual named D and asks to advise D on the merits of his application to set aside the bankruptcy notice. Question 2 asks whether 5 different individuals can have bankruptcy petitions issued against them based on various debt situations. Question 3 asks whether guarantors for loans and a hire purchase agreement can have bankruptcy proceedings taken against them if the primary debtor defaults.

Uploaded by

Yi Ying
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UIS4612- LAW OF INSOLVENCY

TUTORIAL 1

QUESTION 1

On 24 March 2015 G Co. S/B (G Co.) obtained judgment in default against D for a sum of RM156,
000-00 at the Melaka Sessions Court. On 15 May 2016 G Co. applied for a Request to issue Notice
of Bankruptcy. On 18 August 2016, G Co. obtained an order to serve the Bankruptcy Notice by
way of substituted service. On 25 September 2016 it was advertised in the Malay Mail and Star
newspaper, posted at D’s last known address and at the notice board at the Melaka High Court. On
30 October 2016 D applied to set aside the Bankruptcy Notice on the grounds that:-
• the service was irregular
• the amount stated in the Bankruptcy Notice was wrong as he had paid a sum of RM60,000-00
towards full and final settlement of his judgment sum in June 2015 before he left for Vietnam.
• Since June 2016 he was working in Vietnam and was resident there with his family.
• He had no residence or bank accounts or assets of any kind in Malaysia.

Advise D on the merits of his application.

QUESTION 2

Can a Judgment creditor issue a bankruptcy petition against the following persons?

(i) Minnie is an 18-year-old student pursuing a Foundation in Law course in one of the Malaysian
universities. She has been given a Supplementary credit card by her mother to help meet her
financial needs. She has over the last 6 months incurred outstanding bills of RM56,000 for
tuition fees, accommodation and lifestyle expenses.

(ii) Vlad Wallachia is an officer at the Embassy of Xanadu and has been living in Kuala Lumpur
since September 2018. He enjoys the good life and often spends beyond his means. He has
outstanding credit card bills amounting to RM 56,000.

(iii) Mrs. Cash is a happily maried young woman who loves collecting antiques. Recently she
bought a 15th. Century black lacquer painted chest for RM45,000 on 3 months credit, from
Antique Furnitures Sdn. Bhd. Contrary to the credit arrangements she has not paid for it to
date.

(iv) Datuk Ta Da, a member of parliament for Tampin, bought a new car for RM300,000 and has
not been able to meet his car loan payments amounting to RM36,000 over the last 5 months.

(v) Tok Sayang died on the 20 February 2020 leaving unpaid debts in the sum of RM120,000.

1
QUESTION 3

Agnes is a sole proprietor of a small business of selling cupcake. For purposes of furthering her
studies in a business management course she intends to take a loan of RM150,000 from Hotplay
Bank Bhd. Agnes approached Mr. Daniel to stand as her guarantor.

Agnes also wishes to enter into a hire-purchase agreement of RM120,000 with Hotplay Bank Bhd.
for purchase of a van for her business use. For this transaction, Agnes approached Mdm Joyce to
be her guarantor.

Mr Daniel and Mdm Joyce have now approached you for advice whether Hotplay Bank Bhd. can
take bankruptcy proceedings against them as guarantors if Agnes defaulted on her payments to
Hotplay Bank Bhd. and judgment is obtained against Agnes.

Advise Mr. Daniel and Mdm. Joyce.

*** End of document ***

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