A comprehensive report from the Director General of Insolvency is essential for bankruptcy discharge applications; failure to comply with statutory requirements leads to dismissal of such applications.

Muhammad Faisal Zulkifli:

Introduction

[1] The Judgment Debtor (in this application will be referred to as the Bankrupt) filed an application of discharge by way of Summons in Chambers in Encl 1 on 29 July 2022.

[2] During a case management on 13 February 2023, parties were directed to exhaust all affidavits and written submission and subsequently decision was fixed on 24 March 2023.

Issues

[3] The Bankrupt alleged that she has been adjudged bankrupt due to her position as a guarantor for Gentali (Malaysia) Sdn Bhd and as a result of the company's failure to repay the credit facilities provided by the Judgment Creditor ("after this will be referred as 'JC').

[4] The Bankrupt averred that she has not brought on or contributed to her bankruptcy by rash and hazardous speculations or extravagance in living, or by recklessness, or gambling or want of reasonable care and attention to his business and affairs.

[5] The Bankrupt is already 67 years old and not receiving any income.

[6] Adjudged as bankrupt for 14 years, hence second opportunity shall be given for the Bankrupt to start a normal life for the remaining years of her life.

Analaysis And Findings

[7] This Court has scrutinized the affidavits and submission filed by both parties and finds that this application was contested by the JC on grounds as follows:

a) The report filed by Director General of Insolvency (after this will be referred to as 'DGI') is incomplete and did not possesses enough evidence to support Bankrupt to be discharged;

b) The Bankrupt has filed her Statement of Affairs more than 21 days from the date of ROAO;

c) The Bankrupt has committed an offence as stated in s 33(4) of the Act;

d) Insufficient balance in the Bankrupt's estate to pay at least 50% total of dividend; and

e) Bankrupt is still able to work despite of her health problem.

[8] First and foremost, in dealing with Discharge Application filed under s 33 of the Insolvency Act 1967, the most important aspect to consider is the report filed by the DGI.

[9] The report filed by the DGI must contain facts regarding the Bankrupt's conduct and affairs. Referring to s 33(3) of the Insolvency Act 1967, the provision stated as follows:

"(3) On the hearing of the application the Court shall take into consideration a report of the Director General of Insolvency as to the bankrupt's conduct and affairs, including a report as to the bankrupt's conduct during the proceedings under his bankruptcy, and may either grant or refuse an absolute order of discharge, or suspend the operation order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt, or with respect to his after-acquired property "

[10] After careful consideration towards the report filed by DGI and affidavit by the Judgment Creditor and Bankrupt, this Court finds that the Bankrupt has signed a consent form and agreed to pay monthly instalment of initially amounting RM 50 and subsequently increased to RM 100. The first creditors/ meeting was only conducted on 17 March 2022 without any resolution being approved.

[11] The JC has filed a POD amounting RM 907,555.47 against the Bankrupt but has been partially approved by the DGI, which is RM 482,386.03. On top of that, the credit balance in the estate is only RM 7,602.68. As a result, only 1% dividend against the JC was declared by the DGI due to the small amount of credit balance.

[12] The Court finds that at the material time, only RM 4,550.00 has been paid by the Bankrupt after the ROAO was recorded against her. (refer para 18 of the Bankrupt's AIS)

[13] T