Introduction

Lau Kah Kay and Tang Kuong Tiew ("the Bankrupts") were adjudged bankrupt on 2 November 1987. On 30 August 1997 they applied to be discharged which applications were supported by the Official Assignee but opposed by all the creditors who had proved. The Bankrupts were examined on 16 January 1998 for the purpose of enabling the court to decide on their application. The Bankrupts still owe approximately RM13 million to thirteen creditors

The Statutory Report

The Official Assignee after the application was filed issued the statutory report under s 33(3) of the Bankruptcy Act 1967 ("the Act") on 29 September 1997. The report (in Bahasa Melayu), after translation, can be summarised in these terms:

[2]

Report of Official Assignee under s 33(3) of Bankruptcy Act

A receiving and adjudication order had been made against both Lau Kah Lay and Tang Kuong Tiew. Statement of Affairs had been filed by both bankrupts. [Statements of Affairs show the Bankrupts to have no assets but millions of ringgit of debt.] The first creditors' meeting was held on 22 November 1988. Lau Kah Lay was ordered to pay RM 200 per month and he had been doing so ever since. No order to pay was made against Tang Kuong Tiew in view of his low earning and his family liabilities.

At the moment there are 12 secured and unsecured creditors and one preferential creditor have filed claims against Lau. RM 1,093,054 is owed to 8 unsecured creditors. RM 8,754,128 is owed to 4 secured creditors (3rd party charge of land). RM 11,203 is owed to the preferential creditor. [A Detail lists of the creditos and the amount of the debts had been stated.] Stated shortly, all the debts of Lau arose out of guarantees he executed in his capacity as director of Kuching Supermarket Sdn Bhd., Sibu Supermarket and Kesume Supermarket which were closed long ago due to the bad economic situation.

In respect of Tang, 7 creditors have filed claims against him. All these claims are same as those filed against Lau. [A Detail lists of the creditos and the amount of the debts had been stated.].

On 22nd August 1997, a third party, Liu Jin Ngee offered to deposit RM 100,000 with the Official Assignee for the purpose obtaining the discharge of both bankrupts. If the application is not successful the deposit has to be returned to him.

At this point in time, the credit of the bankrupt is RM 68,866.281. If that sum is added to the RM 100,000 it would be sufficient to settle the debt of the preferential creditor and to declare 2.05% dividend to the unsecured creditors. It would also be sufficient to pay the costs of the administration of the bankruptcy.

Lau is 51 years old and currently earning RM 1,600 as a marketing officer. His wife is working as a director of Kasada Sdn Bhd. He has high blood pressure and heart ailment.

Tang is 51 years old. His wife is not working. He is earning RM 1050 as chief cashier at a supermarket.

Both bankrupts have not committed any offence under the Bankruptcy Act so far. After considering their age, health and 10 year period of bankruptcy, the Official Assignee recommends that they both be discharged on condition that:-

(a) that Lau pays RM500 per month for the benefit of the creditors until he attains the age of 55

(b) Tang pays RM 300 until he attains the age of 55.

The notice of application had been sent to all the creditors who have filed proof of debt but so far none have indicated any objection to the application.

29 September 97

Ko Fui Loong

Assistant Official Assignee

[3]

The Powers of the Court

The application for discharge is made under s 33 of the Act under s 33(1) of which, the Court shall take into consideration the statutory report as to the bankrupt's conduct and affairs and may (1) grant an order of absolute discharge, (2) suspend the operation of the order for a specified time, (3) grant an order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt or with respect to