The court may order winding up if a company is unable to pay its debts, proven through statutory notice and non-payment.

Introduction

[1] The petitioner filed a winding up petition dated 4 December 2015 (see Encl. 1) against the respondent under s 218(1)(e) Companies Act 1965 ( CA 1965) premised on a statutory demand under s 218(2)(a) 1965. Prior to the petition, the petitioner and 79 other individuals which the petitioner represented succeeded in their claim against the respondent in the Civil Suit No 22NCVC-227-10/2011 (the said Civil Suit) for the total amount claimed of RM 855,000 inclusive of costs. The 78 other individuals have given Notice of Intention to Appear on this petition pursuant to Rule 28 Companies (Winding Up) Rules 1972 and all of them supported the petition. Until now, the respondent failed to pay the judgment debts due.

[2] The affidavit verifying the Petition affirmed by Rangit Singh a/l Gurnam Singh on 8 December 2014 (see Encl 3).

The Grounds Of The Petition

[3] The grounds of the petition are described by the following relevant paragraphs of the petition:

1. The Respondent, Team Durable Sdn Bhd (hereinafter referred to as 'the said Company') was incorporated on 5 March 2010 under the Companies Act 1965 as a private company limited by shares.

2. The registered office of the said Company is situated at No 47A, Jalan Chung Ah Ming, Pasir Puteh, 31650 Ipoh Perak. The said Company's business address is at Kinding Hill, No. 82, Hala Bercham Timur 11, Bercham Height, 31400 Ipoh, Perak.

3. The authorised capital of the said Company is RM500,000 and the current issued and paid up capital being RM500,000 divided into 500,000 ordinary shares of RM1.00 each.

4. The shareholder of the said Company is a body corporate and the number of shares held are as follows:

Name of shareholder No of shares held Euphoria Technologies Sdn Bhd 500,000

5. The directors of the said Company are:

(a) Looi Choon Pah and

(b) Chong Kong Kin

6. The principal objects for which the said Company was established are, as set out in its first few clauses of its Memorandum of Association, being in essence general trading and property investment. The other ancillary objects of the said Company are as stated in the subsequent clauses in its Memorandum of Association.

7. The said company has been in receivership since 7 January 2013.

8. On 9 October 2014, in the Ipoh High Court Civil Suit No. 22NCVC-227-10/2011, the Petitioner obtained a judgment against the Respondent as one of the Defendants therein, for a sum of RM10,500.00 with interest of 5% per annum accruing from the date of judgment till the date of full payment thereof together with cost of RM 25,000 with interest accruing of the said costs from the date of the judgment pursuant to O 59 r 24 Rules of 2012.

9. Pursuant to the Petitioner's statutory right to make a statutory demand in respect of the said judgment sum, on the 11 November 2014, the Petitioner, served on the said Company by leaving of its registered office a statutory demand pursuant to s 218 of the Companies Act 1965 , which demand was in the following terms:

TAKE NOTICE that, as instructed by our client, Rangit Singh a/l Gurnam Singh, we HEREBY DEMAND payment from you pursuant to s 218(2)(a) of the Companies Act 1965 , the sum of 35, 543.75 (Ringgit Malaysia Thirty Five Thousand Five Hundred and Forty Three and Cents Seventy Five Only), together with accrued interest as stated herein below, within twenty one (21) days from the date of service of this Notice on you.

Our client instructs us that to date, you are indebted to him for the sum of RM35,543.75, in respect of the outstanding amount due to our client pursuant to the judgment of the Court in the Ipoh High Court Civil Suit 22NCVC-227-10/2011 against you