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2021 MarsdenLR 259

HIGH COURT MALAYA KUALA LUMPUR
RE: ABDUL RAZAK SENIN; EX-PARTE: AZIZ AFANDY MOHAMAD ARRIF (ENCL 29)


Petitioner Advocates:YC Lee ,Respondent Advocate: Nazrin Izzat

Judgement Key Points

Key Points: - The Judgment Debtor (JD) appealed against the dismissal of their application to set aside a Bankruptcy Notice (BN) and Creditors Petition (CP) [1][2]. - The JD claimed the BN was defective, the Consent Judgment was not final, and the calculation of interest was incorrect (!) (!) (!) (!) (!) (!) . - The JD argued the BN lacked an endorsement date, referred to the wrong court, and only included a draft Consent Judgment (!) (!) (!) . - The JD also argued the Affidavit Verifying the Petition (AVP) was affirmed before the CP was filed, making it void (!) . - The court found that arguments regarding the BN not having an endorsement date, referring to the Klang Sessions Court, or only enclosing a draft Consent Judgment did not cause substantial injustice and were formal defects curable under section 131 of the Insolvency Act 1967 [5][8]. - Section 131 of the Insolvency Act 1967 states that no bankruptcy proceeding shall be invalidated by a formal defect or irregularity unless substantial injustice is caused that cannot be remedied (!) . - A formal defect is one that could not reasonably mislead the debtor (!) (!) . - The court found the affirmation of the AVP shortly before filing but after attestation to be permissible and within the scope of the Act and Rules (!) (!) (!) . - The calculation of interest in the BN was found to be in accordance with the Consent Judgment, covering amounts in arrears (!) (!) (!) . - The court noted that lawyers should ensure filed papers are properly checked to prevent such occurrences in the future [18].

What is the effect of minor irregularities in bankruptcy notices?

What is the test for determining a formal defect in a bankruptcy notice?

What is the requirement for the timing of an affidavit verifying a bankruptcy petition?


Table of Content
1. appeal against decision to dismiss application to set aside bankruptcy notice. (Para 1 , 2)
2. submissions regarding defects and calculations in bankruptcy notice. (Para 3 , 4)
3. court found minor defects in the notice do not mislead debtor. (Para 5 , 8 , 15)
4. application of the insolvency act regarding formal defects. (Para 6 , 9 , 12)
Nadzarin Wok Nordin JC:

[1] In the notice of Appeal to the Judge in Chambers at encl 29 (Appeal), the Judgment Debtor (JD) herein has appealed against the decision of the Learned Registrar which was given on 3 May 2021 which dismissed the Summons in chambers dated 25 January 2021 (encl 18) with costs of RM1,000.

[2] Enclosure 18 is the JD's application to set aside the Bankruptcy Notice (BN) and Creditors Petition (CP) dated 13 May 2020 on the inter alia the following grounds:

(a) that the BN is defective;

(b) the Consent Judgment dated 28 December 2018 (Consent Judgment) had only stated that the sum of RM252,999.60 and monthly instalment payments of RM2108.33 and in the event of default on the said instalment payments, interest at the rate of 10% per annum was chargeable;

(c) the CP is defective;

(d) the calculation of interest by the J

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