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2013 MarsdenLR 583

HIGH COURT MALAYA, IPOH
LOKE KOOI CHUAN PROPERTIES SDN BHD – Appellant
Versus
LEE KWEE FOH SDN BHD – Respondent
[Originating Summons No: 24-671-07/2012]



A dissolved company lacks legal standing to initiate actions in court, and can only be revived under specific statutory provisions.

Headnote:(A) Companies Act 1965 - Section 307 - Private caveat - Application to set aside ex-parte order dismissing the defendant's application on grounds of locus standi - Defendant company claimed to have been dissolved, therefore lacking legal personality to file the application - No evidence presented to counter the dissolution status - Legal principle of cessation of existence due to dissolution upheld. (Paras 2-5)

(B) Locus Standi - A dissolved company has no standing to initiate legal actions or defend itself in court unless revived under statutory provisions. (Paras 3-4)

Facts of the case:
Defendant sought to challenge an ex-parte order extending a private caveat on land, claiming ownership based on a sale agreement from 1977, but evidence showed the defendant company was dissolved since 1978.

Findings of Court:
The defendant company, lacking legal status, cannot file applications; the court dismissed the defendant's application with costs.

Issues: Whether the defendant company, dissolved since 1978, has the locus standi to bring this application to set aside the ex-parte order.

Ratio Decidendi: A company that has been dissolved cannot initiate or be involved in legal proceedings, confirming the principle of legal personality.

Result: Application dismissed with costs.

Table of Content
1. defendant seeks to set aside ex-parte order on property. (Para 1 , 2)
2. objection raised on defendant's legal standing. (Para 3)

[1] By an application in Enclosure 6, the defendant seeks to set aside an ex-parte order granted by the Court on 7 August 2012 extending the validity of a private caveat entered on land known as Geran 133275 Lot 5334, Mukum Lumut, Daerah Manjung Perak ("the said land").

[2] The salient facts leading to the application are as follows. The said land has a long history dating back to 1940 and I do not propose to dwell into that. It would suffice to state that the plaintiff claims to be the beneficial owner of the said land by virtue of a sale and purchase agreement entered between the plaintiff and the defendant sometime in 1977. A private caveat was lodged on the plaintiff company's behalf by its director on the said land on 30 March 2011. Upon receiving a notice of intended removal in the form of Form 19C from the land office, the plaintiff filed and obtained an ex-parte order from the Court to extend the validity of the caveat for a period of six months. The defendant has now filed this application in Enclosure 6 to set aside that ex-parte order. Several grounds were raised in support of the application.

[3] The plaintiff nevertheless raised an objection as to the locus standi of the defendant company to file this application. There was unrebutted evidence in the form of a Companies Commission of Malaysia ("CCM") search which showed the defendant company to have been "dissolved". No evidence to the contrary was provided by the defendant despite being given the opportunity to do so. There was some evidence that the defendant company went into voluntary liquidation in 1978. In all probability, once the liquidation process was over the defendant company would have been dissolved. It was unfortunate that there were no records in the CCM to show when the company was dissolved. The last record shows the names of directors who are different from the persons now claiming to be directors.

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