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2021 MarsdenLR 950

HIGH COURT MALAYA KUALA LUMPUR
KW CONSULT – Appellant
Versus
IRDK VENTURES SDN BHD & ANOTHER CASE (ENCL 1) – Respondent
[Post Companies Winding-Up Petition Nos: WA-28PW-185-06/2020 & WA-28PW-310-08/2020]



Petitioner Advocates:Lam Wai Loon,Paul Lee,Amy Hiew Kar Yi ,Respondent Advocate: Barvina Punnusamy,Edwin Raj

A business entity that has expired lacks the legal standing to initiate applications or actions in court.

Headnote:The court analyzed relevant applications under the Rules of Court 2012 and the Business Registration Act 1956. It found that KW Consult, a sole proprietorship whose business expired, lacked locus standi. The court framed the issues around KW Consult’s legitimacy in filing applications and the implications on Econpile. Ultimately, the court invalidated the prior orders pertaining to KW Consult's application due to lack of legal standing and affirmed Econpile's status as a creditor.

Table of Content
1. overview of post winding up applications (Para 1 , 3 , 5)
2. arguments presented by econpile and the respondent (Para 7 , 8)
3. court's observations on kw consult's legal standing (Para 10 , 12 , 14)
4. court's reasoning regarding jurisdictional questions (Para 20 , 22)
Nadzarin Wok Nordin JC:

[1] There are 2 Post Winding Up Applications before this Court which were heard together as the matters involves the same parties and subject matter.

[2] The first is the Notice of Motion in encl 1 of Post Winding Up No WA-28PW-185-06/2020 (Motion PW 185) which is Econpile Sdn Bhd (Econpile) motion pursuant to O 18 r 19(1)(b) or (c) or (d) of the Rules of 2012 and/or O 77 r 9 of the Rules of 2012 and/or s 8 of the Business Registration Act 1956 and/or O 92 r 4 of the Rules of 2012 and/or the inherent jurisdiction of the Court for the following orders:

2.1 the Applicant, KW Consult (KW Consult) application dated 30 August 2018 (30 August 2018 Application) and the Affidavit in Support affirmed by Chow Kong Wah on 30 August 2018 be set aside;

2.2 Costs of this application to be borne by KW Consult and/or the assets of IRDK Ventures Sdn Bhd (In Liquidation) (Respondent);

2.3 Such further or other order or relief as to this Court deems fit

[3] The grounds for Motion PW 185 are as follows:

a) KW Consult is a sole proprietor business which was registered on 14 May 2015;

b) KW Consult's business expired and/or ceased to exist on 3 July 2018 which according to the records has not been renewed as at 5 May 2020;

c) KW Consult's Application filed on 30 August 2018 was made after KW Consult's business had expired /ceased;

d) KW Consult's Application is frivolous, vexatious and/or inconvenience or may impair, obstruct and/or delay the fair hearing of legal action or an abuse of Court process.

[4] The second Notice of Motion in encl 1 of Post Winding Up No WA-28PW-310-08/2020 (Motion PW 310) which is Econpile's motion pursuant to O 3 r 5, O 15 r 6 and/or O 92 r 4 of the Rules of 2012 which seeks for the following orders:

4.1 Econpile be given an extension of time to file Motion PW 310;

4.2 Econpile be given leave to intervene in Post Winding Up No WA-28PW-347-08/2018;

4.3 The Order dated 15 July 2019 (15 July 2019 Order) be set aside;

4.4 Costs of this application to be borne by KW Consult and/or the assets of IRDK Ventures Sdn Bhd (In Liquidation) (Respondent);

4.5 Such further or other order or relief as to this Court deems fit.

[5] In brief the grounds for Motion PW 310 are as follows:

a) the 15 July 2019 Order is invalid as KW Consult's Application which was filed on 30 August 2018 (KW Consult's Application) was done after the business had ceased to exist;

b) KW Consult is a sole proprietor registered on 14 May 2015 and its business expired on 3 July 2018 and according to the records as at 5 May 2020 has not been renewed;

c) KW Consult's Application is wrong in law as KW Consult had no locus standi to make the said Application to appoint a liquidator as its business had ceased to exist on 3 July 2018 and KW Consult is not a legal entity;

d) the fact that the business had ceased to exist was not mentioned and/or hidden on purpose in KW Consult's Affidavit in Support so that the said KW Consult's Application will not be dismissed by the Court;

e) the right of KW Consult to appoint is not valid, without locus standi and wrong in law and has from a legal standpoint affected Econpile's right to appoint their own liquidator and Econpile's application to discharge the liquidator to be postponed whilst awaiting the Court's decision to determine the validity of the liquidator appointed by KW Consult.

[6] Both matters were heard together with the consent of both counsels as they were inter related.

Econpile's Submissions

[7] Econpile had submitted in essence that:

(i) KW Consult is not a legal entity and lacks jurisdiction as KW Consult's Application should have been brought by Chow Kong Wah under the name and style of KW Consult;

(ii) KW Consult's registration had expi

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