COURT OF APPEAL (KUALA LUMPUR)
ABDUL HAMID MOHAMAD JCA, ABDUL KADIR SULAIMAN JCA, RICHARD MALANJUM JCA
HENRICK INTERNATIONAL HOTELS AND RESORTS PTE LTD
versus
YTL HOTELS & PROPERTIES SDN BHD
RAYUAN SIVIL NO. W-03-20-1997
Decided On : 05-28-03
The brief factual background has already been dealt with by my learned brother Richard Malanjum JCA in his judgment reported in (2003) 2 CLJ 445 and I am therefore spared from repeating it here, except that for the purpose of this judgment, certain aspect of the matter needs to be highlighted.
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2. At all material time, the directors of the Company, the
product of a joint venture between the appellant and the first
respondent, were the second to the fourth respondents. The
appellant which in the beginning had the fourth respondent as its
nominee appointed as a director in the Company, was left without
one when the fourth respondent subsequently left its employment
to join the first respondent without relinquishing his position as a
director in the Company, representing the appellant.
3. Subsequently a dispute arose between the appellant and the
first respondent over the management of the Company resulting in
the first respondent filing a petition for the winding up of the
Company under section 218 of the Companies Act 1965 ("the
Act") on 18th October 1995. However the winding up order was
only made on 19th January 1996. For the appellant, he also filed a
petition for the winding up of the Company under section 118
("the oppression petition") on 16th January 1996 which was three
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days before the making of the order for winding up under section 218 in favour of the first respondent.
4. The oppression petition of the appellant was met by the
summons in chambers of the first, the second and the third
respondents of 26th March 1996. The fourth respondent was not a
party to this summons in chambers. It was an application to strike
out the appellant's oppression petition under O. 18 r.19 of the
Rules of the High Court 1980 ("the RHC"). This application of the
respondents was heard by the learned Senior Assistant Registrar
("the SAR") who dismissed it.
5. Being dissatisfied with the said decision, the respondents
appealed to the Judge in Chambers. The learned Judge on 31st
March 1997 allowed the appeal and ordered the striking out of the
oppression petition of the appellant. It is against this decision that
the appellant is seeking redress before us.
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6. According to the Judgment of the learned Judge of 11th
April 1997, the appeal by the respondents was allowed solely
on the ground that the oppression petition was presented after
the Company has been ordered to be wound up.
7. The learned Judge so held on the authority of Web v
Stanfield & Anor (1990) 8 ACLC 715. He said in his judgment:
".... at the date of the petition the perpetrators are no
longer running the company and exercising the powers of
directors because the company is now under the charge of
a liquidator? Could those words of paragraph (a) of
subsection (1) of section 181 apply to the governance of
the liquidator? I did not think that what could be said of
the perpetrators could be said of the liquidator. I did not
think it could be said that by letting the effects of the act
or omission continue and not doing anything to neutralize
them, the liquidator is running the company
oppressively
I was of opinion that, where the oppression petition is presented after a company has been ordered to be wound up, the authority that is appropriate is Webb v Stanfield and not Owen Sim, because Owen Sim was not such a case."
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8. The learned Judge is correct is so saying if the factual
situation is correct in that the oppression petition was presented
after the Company was ordered to be wound up. But the situation
is to the contrary. The Company was only ordered to be wound up
upon the petition of the first respondent, three days after the
presentation of the oppression petition by the appellant.
9. Further, Webb v Stansfield, in my view, could easily be
distinguished on the fact because the company there was ordered to
be wound up on the ground of insolvency whereas in the case
before the learned Judge, the winding up application by the first
r
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