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2016 MarsdenLR 2420

FEDERAL COURT PUTRAJAYA
HONG LEONG BANK BERHAD – Appellant
Versus
KHAIRULNIZAM JAMALUDIN – Respondent


Table of Content
1. this appeal contests a previous court decision concerning bankruptcy. (Para 1)
2. details on the respondent’s role as a guarantor and background of the debt. (Para 3 , 4 , 5 , 6 , 7 , 9)
3. court's decisions regarding the requirements for bankruptcy action against social guarantors. (Para 11 , 12 , 13)
4. arguments from both parties concerning procedural requirements under the bankruptcy act. (Para 15 , 16 , 18)
5. court's interpretation of s 5(3) and related provisions. (Para 19 , 20 , 29 , 33 , 34)
JUDGMENT

Hasan Lah FCJ:

Introduction

[1] This is an appeal against the decision of the Court of Appeal given on 11 July 2014 which upheld the decision of the Kuala Lumpur High Court affirming the Senior Assistant Registrar's decision to set aside the appellant's bankruptcy notice against the respondent.

[2] The leave to appeal was given by this Court on 6 January 2015 on the following question of law:

"Whether the phrase 'unless he proves to the satisfaction of the Court that he has exhausted all avenues to recover debts owed to him by the debtor' in s 5(3) of the Bankruptcy Act 1967 requires a judgment creditor to obtain leave of Court prior to commencing a bankruptcy actio

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