JUDGMENT

This is an application by summons in chambers under rule 18(1) of the Bankruptcy Rules 1969 ("the BR") for the following: -

(1) ;an order that the creditor's petition dated 24 January, 1998 be struck out;

(2) ;an order that the bankruptcy notice dated 7 July, 1997 be struck out; and

(3) ;costs to be awarded to the judgment debtor.

The application is supported by the affidavit of Loi Teck Soon affirmed on 4 January, 1999. The relevant parts read as follows: -

"1. That I am the abovenamed Judgment Debtor.

2. That Messrs. Loi Teck Soon & Sons Quarry Sdn. Bhd. ("the third party") who is the principal debtor on the judgment had paid a net sum of RM49,985.00 after the service of the Bankruptcy Notice under the Bankruptcy Proceedings No.20-29-119 of 1997. The Judgment Creditor had issued 2 official receipts, one bearing No.7-857094 dated 21st August 1997 and another one bearing No.7-856125 dated 15th November 1997. A copy each of the receipts are now produced and shown to me marked as "LTS". [2]

3. That I am at the material times residing in Bintulu, Sarawak at the given address whether before and after the alleged judgment debt was incurred and I believe that the High Court at Bintulu is the proper or convenient forum and has the local territorial jurisdiction in the bankruptcy proceedings and I have not given any consent in writing for the proceedings to be heard by the High Court at Sibu.

4. That the judgment on which the Bankruptcy Notice was based on had awarded interest before the date of judgment and therefore had contravened Order 42 Rule 12 of the High Court 1980.

5. That the said Judgment with interest awarded at 1.5% per month on overdue interest of RM17,529.49 has contravened Section 11 of the Civil Law Act 1956.

6. That the Bankruptcy Notice has failed to comply with Section 3(1)(i) of the Bankruptcy Act 1967 in that the amount of debt specified in the Bankruptcy Notice was not in accordance with the terms of the Judgment.

7. That Mr. Loi Hieng Sing was not lawfully or duly authorised to sign the Creditor's Petition under seal of the corporation for the abovenamed Judgment Creditor.

8. That I am no longer indebted to the Judgment Creditor or if any (which is denied) is far less than the statutory minimum of RM10,000.00.

9. That the Creditor's Petition was not presented within 6 months before the alleged act of bankruptcy (which is denied) and is void.

10. That the Creditor's Petition did not truly describe my present address and when the debt or liability was incurred.

11. That the Creditor's Petition did not state the true account of any payment made by the third party after the issuance of the Bankruptcy Notice.

12. That the Creditor's Petition has purported to demand payment of unascertained sums (which is denied) from me." [3]

An affidavit in opposition was affirmed by Loi Hieng Sing on 8 February, 1999. The relevant parts read as follows: -

"1. I am the branch manager of the Judgment Creditor, namely MBf Finance Berhad of No.21, Blacksmith Road, 96000 Sibu and have authority and personal knowledge to depose of the matters hereinafter stated.

2. The matters deposed herein are from my personal knowledge and from the records and documents in the custody and possession of the Judgment Creditor and its advocates namely Messrs. Hii & Co. Advocates of Sibu.

3. I crave leave to refer to the Affidavit of Mr. Loi Teck Soon sworn on 4.1.1999 (hereinafter referred to as "LTS's Affidavit") which was served, together with the Summons-in-Chambers dated 6.1.99, on my advocates namely Messrs. Hii & Co. Advocates on 26.1.99.

4. I refer to paragraph 2 of LTS's Affidavit and say that the Judgment Debtor paid only RM9,985.00 to the Judgment Creditor on 15.11.97. The alleged payment of about RM40,000.00 was in respect of another account.

5. I am advised by my lawyer Mr. Hii Hieng Sing that: -

(a) The High Court in Sibu has jurisdiction over the bankruptcy proceedings in this action;

(b) The said judgment has not contravened Order 42 Rule 12