JUDGMENT

Raja Rozela Raja Toran JC:

(Enclosure 1 - Winding-Up Petition)

Introduction

[1] This is a petition by Government of Malaysia ("the Petitioner") to wind up Meditech Gloves Sdn Bhd ("the Respondent") under s 465(1)(e) of the Companies Act 2016 ("CA 2016") on the ground that the company is unable to pay its debts within the meaning of s 466(1)(a) CA 2016.

[2] Having considered the undisputed facts and the respondent's persistent failure to satisfy the judgment debt despite repeated indulgence, I allowed the petition on 5 May 2025.

[3] The Respondent has since appealed to the Court of Appeal.

Background Facts

[4] The Petitioner filed this winding-up petition on 15 July 2024, seeking to wind up the Respondent on the basis of its insolvency. The debt owed by the respondent amounts to RM2,667,043.30 as of 27 March 2024. This sum arises from a judgment obtained by the Government of Malaysia at the Shah Alam Sessions Court on 9 March 2022 for RM2,807,930.69, together with interest at 5% per annum from the date of judgment until realisation and costs of RM2,000.00.

[5] A Notice of Demand pursuant to s 466(1)(a) CA 2016 was duly served on 28 May 2024, requiring payment within twenty-one (21) days. The Respondent failed to comply with this statutory demand, thereby triggering the statutory presumption of insolvency under s 466(1)(a) CA 2016.

Proceedings History

[6] The petition was initially fixed for hearing on 21 October 2024. The matter was subsequently adjourned on three occasions between October 2024 and March 2025 at the request of the parties to facilitate discussions on a possible out-of- Court settlement, including proposals for repayment by instalments.

[7] However, despite these adjournments and the ample opportunity afforded to regularise its indebtedness, the respondent failed to honour the proposed repayment arrangements or to make any meaningful payments towards settlement by the final hearing date of 5 May 2025.

[8] It is material to note that the respondent did not file any affidavit in opposition to the petition. As such, there was no evidence placed before the Court disputing the petitioner's claim, challenging the validity of the statutory demand, or demonstrating that the company remained solvent.

Analysis And Findings

[9] Upon a careful review of the record, I find that the debt is a valid and undisputed judgment debt. The Petitioner has fully complied with the procedural requirements prescribed under s 466(1)(a) CA 2016.

[10] In the absence of any affidavit in opposition or evidence of solvency, the respondent is deemed to be unable to pay its debts. The statutory presumption of insolvency therefore stands unrebutted.

[11] Furthermore, the respondent's repeated failure to adhere to the proposed settlement terms and to make any payments despite numerous indulgences reinforces the inference of commercial insolvency.

[12] I am therefore satisfied that the requirements for a winding-up order under s 465(1)(e) CA 2016 have been met.

Conclusion And Order

[13] For the foregoing reasons, I ordered as follows:

a. That Meditech Gloves Sdn Bhd, be wound up pursuant to s 465(1)(e) of the Companies Act 2016;

b. That the Official Receiver be appointed as the Liquidator of the respondent;

c. That the costs of this petition in the sum of RM5,000.00 is to be paid out of the assets of the respondent.