Ravinthran Paramaguru JC:

[1] This is an appeal from the decision of the SAR to dismiss the objection of the judgment creditor under s. 33B of the Bankruptcy Act 1967.

Background Facts

[2] A receiving and adjudication order was made against the respondent in this case on 27 January 2000 for failing to satisfy a judgment in the sum of RM68,032.68. His liability arose from a guarantee he had executed in favour of the applicant to enable his friend one Law Kian Tan to buy a car on hire purchase. His friend defaulted in payment and the respondent was unable to pay the judgment sum. Subsequent to his bankruptcy, the respondent agreed to pay RM50 per month to the official assignee (now director general of insolvency) until full and final settlement of his debt. The debt had by then totalled RM82,660.98 due to accretion of interest. The court made a consent order to that effect on 15 September 2000.

Objection Under S. 33B

[3] This application (encl. 58) was filed on 17 June 2008 by the creditor to prohibit the director general of insolvency (DGI, formerly official assignee) from discharging the respondent from bankruptcy. Under s. 33A which was introduced videAct A1035 in 1998, the DGI was conferred the power to discharge a bankrupt by issuing a certificate of discharge although the debt to the creditors may not have been settled. The only statutory pre-condition is that at least five years must have elapsed from the date of the receiving and adjudication order. However, the DGI is required to give notice of his intention to do so to the creditors before issuing the said certificate. The creditors have 21 days to raise an objection before the bankruptcy court against the intended discharge of the bankrupt. For sake of convenience, I reproduced the two provisions below:

33A. Discharge of bankrupt by Certificate of Director General of Insolvency.

(1) The Director General of Insolvency may, in his discretion but subject to section 33B, issue a certificate discharging a bankrupt from bankruptcy.

(2) The Director General of Insolvency shall not issue a certificate discharging a bankrupt from bankruptcy under subsection (1) unless a period of five years has lapsed since the date the receiving order and the order by which he was adjudged bankrupt were made.

(3) Notice of every discharge under subsection (1) shall be given by the Director General of Insolvency to the Registrar and the Director General of Insolvency shall advertise the notice in a local newspaper as prescribed.

(4) The Director General of Insolvency shall, upon the application of any interested person, issue a copy of the certificate of discharge to the applicant upon payment of the prescribed fee.

33B. Objection by creditor to discharge of bankrupt under section 33A.

(1) Before issuing a certificate of discharge under section 33A, the Director General of Insolvency shall serve on each creditor who has filed a proof of debt a notice of his intention to issue the certificate;

(2) A creditor who has been served with a notice under subsection (1) and who wishes to object to the issuance of a certificate discharging the bankrupt shall, within twenty-one days from the date of service of the notice, furnish a notice of the objection stating the grounds of his objection.

(3) A creditor who does not furnish a notice of his objection and the grounds of his objection in accordance with subsection (2) shall be deemed to have no objection to the discharge.

(4) A creditor who has furnished a notice of his objection and the grounds of his objection in accordance with subsection (2) may, within twenty-one days of being informed by the Director General of Insolvency that his objection has been rejected, make an application to the court for an order prohibiting the Director General of Insolvency from issuing a certificate of discharge.

(5) Every application under subsection (4) shall be served on the Director General of Insolvency and on the bankrupt and the court shall hear the Offi