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2025 MarsdenLR 79

HIGH COURT MALAYA KUALA LUMPUR
RE: MUHAMMAD ZAHIR SANJAY ABDULLAH; EX-PARTE: MENTARI DHUHA SDN BHD (ENCLS 1 2 9 10 11 41 46 ....
[Bankruptcy No: WA-29NCC-2160-12/2020]



Petitioner Advocates:Muhammad Zahir Sanjay Abdullah ,Respondent Advocate: Fairuz Zafirah Zainudin Merican

The authority of a company's sole director to execute bankruptcy documents is valid under the Companies Act, and a solicitor representing the company may initiate bankruptcy proceedings on its behalf.

Headnote:(A) Insolvency Act 1967 - Section 133 - Companies Act 2016 - Section 66 - Insolvency Rules 2017 - Validity of bankruptcy notice and petitions - The Request to Issue Bankruptcy Notice and Creditor's Petitions were challenged based on authority and execution issues related to officers of the JC. The court found that the solicitor’s actions were valid, affirming that they acted as authorized agents, and the petitions were duly executed according to the laws governing company documents. (Paras 10-14, 17-25)

(B) Authority of legal representatives - The court upheld the principle that documents executed by a sole director are valid as if executed under the company’s seal per statutory provisions. (Paras 15, 20)

(C) Procedural defects - Challenges raised by the JD were determined to lack merit, as the affidavits and petitions were executed properly under the relevant statutory authority. (Paras 27-30)

Facts of the case:
The Judgment Creditor's authority to execute and file various documents in bankruptcy proceedings was scrutinized. The JD contested the validity of these documents.

Findings of Court:
The court affirmed the validity of the bankruptcy notice and petitions, dismissing the JD's appeal.

Issues: The main issues were the authority to execute the bankruptcy notice and the validity of the documents filed by the JC.

Ratio Decidendi: The court reasoned that validity is maintained if documents are signed by the sole director authorized by company resolution and witnessed properly.

Result: Appeal dismissed with costs.

Table of Content
1. notice of appeal details and submissions (Para 1 , 2 , 3 , 4)
2. jd's grounds for opposing bankruptcy petition (Para 6 , 7)
3. authority issues in bankruptcy proceedings (Para 8 , 9)
4. validity of request to issue bankruptcy notice (Para 10 , 11 , 12 , 13)
5. execution of bankruptcy documents by authorized personnel (Para 14 , 15 , 16 , 17 , 18 , 19)
6. creditor's petition validity upheld (Para 20 , 21 , 22 , 23 , 24 , 25)
7. affidavit validity in bankruptcy petitions (Para 27 , 28 , 29 , 30)
8. authority and legality in presenting bankruptcy petitions (Para 31 , 32 , 33 , 34 , 35)
Saheran Suhendran JC:

Introduction

[1] These Grounds concern the Notice of Appeal to the Judge in Chambers dated 9 September 2024 (Encl. 188),from the dismissal of the Notice of Intention to Oppose Creditor's Petition (Encl. 46) by the Senior Assistant Registrar ("SAR").

[2] The parties' submissions filed herein are:

(a) JC's submissions dated 16 October 2024 (Encl. 198) (JC Subs-1);

(b) JD's submissions dated 18 October 2024 (Encl. 192) (JD Subs-1);

(c) JD's submissions dated 28 October 2024 (Encl. 193) (JD Subs-2).

[3] The cause papers are as follows.

(a) Request to Issue Bankruptcy Notice (Encl. 1)

(b) Bankruptcy Notice (Encl. 2)

(c) Creditor's Petition (Encl. 9)

(d) Affidavit Verifying Creditor's Petition (Encl. 10)

(e) Bankruptcy Deposit (Encl. 11)

(f) Amended Creditor's Petition (Encl. 41)

(g) Amended Affidavit Verifying Creditor's Petition (Encl. 47)

(h) Notice of Intention to Oppose Creditor's Petition (Encl. 46)

(i) Affidavit in Opposition by the Judgment Debtor (Encl. 181)

(j) Affidavit in Reply by Judgment Creditor (Encl. 182)

(k) Affidavit in Reply by Judgment Debtor (Encl. 183)

>(l) Judgment Creditor's Written Submission (Encl. 184)

(m) Judgment Creditor's Bundle of Authorities (Encl. 185)

(n) Judgment Debtor's Written Submission (Encl. 186)

(o) Judgment Debtors Reply Submission (Encl. 187)

(p) Notice of Appeal to Judge in Chambers (Encl. 188)

[4] The Contents of these submissions are as out below.

[5] In my judgment, the SAR rightly dismissed JD's Encl 46.

Introduction

[6] With reference to the Notice of Intention to Oppose Creditor's Petition (Encl. 46), the Judgment Debtor ("the JD") had filed Affidavit in Opposition (Encl. 181) that set out the grounds in support of this appeal in Encl 1.

[7] The JC raised four (4) grounds.

(a) The Request to Issue Bankruptcy Notice (Encl. 1) is not valid as Messrs. Peter Chambers was not an officer of the Judgment Creditor ("JC"), within s 133 of the Insolvency Act 1967 and r 215 of the Insolvency Rules 2017 .

(b) The Request to Issue Bankruptcy Notice (Encl. 1) is not valid, as the same should have been executed by two (2) authorised officers of the JC under s 66 of the Companies Act 2016 (" CA 2016").

(c) The Creditor's Petition (Encl. 9), as well as the Amended Creditor's Petition (Encl. 41), are defective as they should have been executed by two (2) authorised officers of the JC under s 66 of CA 2016.

(d) The Affidavit Verifying Creditor's Petition (Encl. 10), as well as the Amended Affidavit Verifying Creditor's Petition (Encl. 47) are defective, as the same should have been executed by two (2) authorised officers of the JC under s 66 of CA 2016.

The Issues & The Merits

[8] It can be seen that the four (4) challenges are as to the authority to execute various documents and case papers filed in these bankruptcy proceedings. These include the execution of the Request to Issue Bankruptcy Notice, the Creditor's Petition and the affidavits verifying the Creditor's Petition. I have dealt with a number if not substantially all these procedural issues in previous proceedings against this JD, see Re: Muhammad Zahir Sanjay; Ex-Parte: Legasi Senada Sdn Bhd 2025 MarsdenLR 1040 .

[9] There are no issues that go to the merits.

First & Second Issues

[10] First, the Request to Issue Bankruptcy Notice (Encl. 1) is allegedly invalid as JC's solicitors, Messrs. Peter Chambers were not officers of the JC under s 133 of the In

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