This is an appeal by the third defendant against the decision of the senior assistant registrar given on 28 February 1992 ordering that the third defendant who is an undischarged bankrupt must first obtain the sanction of the official assignee Malaysia under 9 38(1) of the Bankruptcy Act 1967 ('the Act') for the purpose of making an application to set aside the judgment in defaut of appearance.

At the hearing of the appeal, the only issue for the court to decide was whether the bankrupt required the sanction of the official assignee under s 38(1) of the Act in order to proceed with the application to set aside the judgment in default of appearance.

Encik Shaharuddin, counsel for the third defendant submitted that no such sanction was required for the purpose of an application to set aside a default judgment.

In order to determine this issue it is necessary to examine s 38(1)(a) of the Act which states as follows:

(l) Where a bankrupt has not obtained a discharge:

(a) the bankrupt shall be incompetent to maintain any action (other than an action for damages in respect of an injury to his person) without the previous sanaion of the Official Assignee.

The crucial words