[1] This is an appeal against the decision of the High Court in which the learned judge dismissed the appeal by the appellant against the Deputy Registrar's decision in allowing the application of the respondent for an order of discharge under s 33 of the Bankruptcy Act 1967 (the Act).

[2] We heard the appeal and after due consideration of respective submissions of counsel, we allowed the appeal and now give our reasons.

Factual Background

[3] The respondent was adjudged a bankrupt on 11 October 2001 through an application by the appellant for debt owed to it in the bankruptcy Court.

[4] The appellant thereafter lodged a claim with the Director General of Insolvency (DGI) of RM732,024.97. This proof of debt was accepted by the DGI as reflected in item 2 of the DGI's report dated 18 June 2012.

[5] The respondent on 19 April 2012 applied to the Court for a discharge of his bankruptcy and on 31 July 2012 the Deputy Registrar sus