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2025 MarsdenLR 5661

FEDERAL COURT (PUTRAJAYA)
MOHAMAD ZABIDIN MOHD DIAH, CJ, NALLINI PATHMANATHAN, J, RHODZARIAH BUJANG, J
N Chanthiran al Nagappan – Appellant
Versus
Kao Che Jen – Respondent


Alvin Chong Chee Vun (with Jonathan) (Idris, Alvin Chong & Partners Advocates) for the appellant.
Lim Heng Choo (with Analissa Lim) (Lim & Lim Advocates) for the respondent.

Table of Content
1. liquidator's role in company liquidation. (Para 3 , 4)
2. requirement of leave to sue liquidator. (Para 5 , 6 , 7)
3. court's discretionary power over liquidators. (Para 8 , 9 , 10)
4. arguments from legal counsel. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17)
5. emergence and duties of liquidators. (Para 18 , 19 , 20 , 21)
6. test for granting leave against liquidators. (Para 22 , 23 , 24 , 25 , 26 , 27)
7. court interpretations and regulations. (Para 37 , 38 , 39 , 40 , 41)
8. final ruling on leave requirement before suing liquidator. (Para 65 , 66 , 67 , 68)

[1]The sole issue in this appeal is whether leave of court is required for the commencement of proceedings against a court-appointed liquidator.

[2]The long-established position in this jurisdiction is that leave is obtained from the winding up court prior to such commencement. However, in two recent decisions, namely Kao Che Jen v N Chanthiran Nagappan 2015 MarsdenLR 216 (‘Kao Che Jen’) and the instant appeal, the Court of Appeal has departed from this long-established position. It is therefore incumbent upon this Court to clarify the relevant legal principles in this regard.

B. BACKGROUND FACTS

[3]The respondent, Kao

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