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2025 MarsdenLR 2183
HIGH COURT MALAYA KUALA LUMPUR
GOLDEN WAVE SDN BHD – Appellant
Versus
SABAH DEVELOPMENT BANK BERHAD (ENCL 1) – Respondent
[Companies Winding-Up No: WA-28-JM-17-05/2024]
A dismissal of an application for Judicial Management under the Companies Act necessitates resolution of appeal costs before discontinuance can be validly executed.
Headnote:(A) Companies Act 2016 - Section 465 - Application for Judicial Management (JM) - Dismissal of application due to objections from secured creditors under Section 409 resulted in the Applicant's non-proceeding with the appeal as no Notice of Discontinuance could be filed until costs were determined. (Paras 1-4)
(B) Appeal - The court clarifies that no grounds need to be written subsequent to the procedural developments surrounding the application and appeal, noting the importance of resolving cost issues prior to finalizing discontinuance. (Paras 3-4)
Facts of the case:
The Applicant sought JM under the Companies Act, facing objections from two secured creditors, leading to the application being dismissed. The subsequent appeal was not pursued to avoid costs complications.
Findings of Court:
No further grounds for judgment were required post-dismissal as the matter revolved around procedural issues regarding appeal costs.
Issues: The main issue involved the procedural implications of costs related to the appeal against the dismissal of the JM application.
Ratio Decidendi: The court emphasized the necessity of resolving cost issues before considering the discontinuance of an appeal, indicating that procedural clarity was prioritized over substantive grounds.
Result: Application dismissed.
| Table of Content |
|---|
| 1. application for judicial management (Para 1) |
| 2. objection by secured creditors and appeal issues (Para 2 , 3) |
Introduction
[1] This is the Applicant's application in encl 1 to be placed under Judicial Management ("JM") pursuant to s 465 of the Companies Act 2016 (" CA 2016").
[2] On the objection by two (2) secured creditors, namely Bank Pembangunan Malaysia Berhad, and Sabah Development Bank Berhad, I dismissed this application under the provisions of s 409 of the Companies Act 2016 .
[3] After the filing of the appeal against my dismissal of the application in encl 1, the Applicant's counsel informed me that their client is not proceeding with the appeal. However, they cannot file a Notice of Discontinuance of the Appeal until the court of Appeal decides on the issue of costs, since the Respondents are asking for costs of the appeal to be paid before agreeing to the discontinuance.
