The court lacks jurisdiction over a claim involving a company in liquidation in another jurisdiction, emphasizing insolvent companies' assets are governed by the insolvency court.

JUDGMENT

Faizah Jamaludin J:

Introduction

[1] The defendants have challenged this court's jurisdiction over them in respect of the subject matter and/or the reliefs and remedies sought by the plaintiffs in this instant suit.

[2] By reason of this challenge, they have sought in the applications by D1 and D2 in encl 11 and by D3 and D4 in encl 13, pursuant to O 12 r 10(1) of the Rules of 2012 ("ROC"), for a declaration that this court does not have the jurisdiction over the subject matter of this present action and/or the reliefs and remedies sought by the plaintiffs; and that this present suit be struck out forthwith.

[3] Alternatively, they seek under O 12 r 10(2) and (4) of the ROC, for a declaration that the Courts in Malaysia is not the forum conveniens to adjudicate the issues arising in this present suit; and that this present action be stayed indefinitely or struck out forthwith.

[4] The applications in encl 11 and encl 13 were heard together by this court. At the conclusion of the hearing, I found that this court does not have the jurisdiction over the defendants in respect of the subject matter and/or the reliefs and/or remedies sought by the plaintiffs in this instant suit. This suit was, accordingly, struck out.

[5] The full reasons for this court's decision are set out in this judgment.

Background Facts

[6] This instant suit had been brought by the 1st plaintiff ("P1") and the 2nd plaintiff ("P2") against the 1st ("D1"), the 2nd ("D2"), the 3rd ("D3") and the 4th ("D4") defendants. The plaintiffs claim that D1 and D2 had fraudulently routed monies ("PME Routed Monies") out by D1 and D2 out of Paliy Marine Engineering Pte Ltd ("PME") and was used by D3 to purchase a land in Pontian, Johor (the "Pontian Land").

[7] PME is a company incorporated in Singapore. It is currently under Creditors' Voluntary Liquidation in Singapore. PME went under Creditors Voluntary Liquidation in Singapore pursuant to resolution at its Creditors Meeting on 29 January 2019. Abutahir Abdul Gafoor of AAG Corporate Advisory Pte Ltd was appointed as the liquidator of PME (the "Liquidator").

[8] It is the defendants' case since the plaintiffs' claim against the defendants is that the PME Routed Monies had been used to purchase the Pontian Land, the jurisdiction over the subject matter of this suit lies with the Singapore High court and not the High court of Malaya.

[9] P2 is an unsecured creditor of PME. P2 had entered into several contracts with D4 and PME for the supply of goods. P2 claims that PME owed it the sum of S$1,069,273.84 and D4 owed it the sum of RM73,709.22. P2 had filed a civil claim in the High court of Singapore on 27 December 2018 (Case No HC/ S1313/2018) ("Singapore Suit") against PME and D4 for the monies allegedly owing. P2 discontinued the Singapore Suit against D4 after D4's payment of monies to P2 in full and final settlement of all claims by P2 against it.

[10] P2 also discontinued the Singapore Suit against PME after PME went into Creditors Voluntary Liquidation. P2 had filed a proof of debt with PME's Liquidator in Singapore in respect of the sum of S$1,069,273.84 allegedly due and owing by PME to P2.

[11] P1 is a Malaysian citizen. He is a director of P2. He is also a director of D3 and D4. D1 and D2 are citizens of Singapore. D3 is a Malaysian incorporated company and D4 is a Singapore incorporated company. D3 is a subsidiary of the D4. D1 and D2 are directors of D3, D4 and PME.

[12] On 18 April 2019, following a resolution carried at a Creditors Meeting of PME, Lee Lai Leng of P2 was appointed as one of the four members of the Committee of Inspection ("COI") in the liquidation of PME. The COI's role and powers in PME's Creditors Voluntary Liquidation are provided under the relevant laws of Singapore. The COI had been engaging with the Liquidator on matters relevant to the PME's Creditors Voluntary Liquidation.

[13] After the discontinuation of the Singapore Suit against PME, P2 wrote to the Liquidator and raised issues relating, in