A Judicial Management Application requires substantial evidence to demonstrate the likelihood of achieving company survival, as mere assertions of potential recovery are insufficient.

Saheran Suhendran JC:

GROUNDS OF JUDGMENT

[1]These Grounds concern 2 applications filed herein, Encl 1 and Encl 10.

INTRODUCTION

[2]Encl 1 was filed by the Applicant, Pembinaan BY Sdn. Bhd. (“Applicant”) for orders, inter alia:

a.that Minda Muhibah Sdn. Bhd. (“the Respondent”) be placed under Judicial Management pursuant to s. 405Companies Act 2016CA 2016”);

b.that Mr. Andrew Heng and Mr. Kumarakuru Krishnan, be jointly and severally appointed as Judicial Managers of the Respondent;

[3]Encl 10 was filed by China State Construction Engineering (M) Sdn. Bhd. (“China State”), pursuant to, inter alia, O. 15 r. 6(2)(b), O. 18 r. 19(1)(b), (1)(c) and/or (1)(d) and O. 92 r. 4 of the Rules of Court 2012 , s. 410(c) CA 2016inter alia, the following Orders:

a.China State be granted leave to intervene and be added as the 2nd Respondent in these proceedings;

b.Encl 1 be struck out;

c.China State be granted leave to continue with the arbitration against the Respondent ‘In the Matter of the Arbitration Act 2005 (Amended 2011 & 2018) and In the Matter of an Arbitration between Minda Muhibah Sdn Bhd and China State Construction Engineering (M) Sdn Bhd’ (“Arbitration”);

d.China State be granted leave nunc pro tunc to continue with the winding up proceedings against the Respondent in KL HCt [OS No. WA-24NCC-339-06/2025] (“OS 339”) and KL H Ct [Companies Winding Up Petition No. WA- 28NCC-648-06/2024] (“Petition 648”);

[4]Save where the context otherwise provides, all references to sections are with reference to the sections of CA 2016.

[5]The contents of these Grounds are set out below.

BACKGROUND FACTS

(see generally, Encl 11)

[6]The following background facts are adopted from the submissions of China State, for which I am grateful.

[7]The Respondent is the employer of a commercial development known as ‘Rencana Royale’ (“Project”).

[8]By a Letter of Award dated 12.11.2018, the Respondent appointed China State as the main contractor for the main building works under the Project (“Works”) for a total sum of RM160,627,298.81 (“Contract”).

CIPAA 1

[9]On 24.6.2022, China State commenced adjudication proceedings (Adjudication Reference No. AIAC/D/ADJ-4334- 2022) against the Respondent for unpaid certified sums due and owing under Interim Payment Certificates No. 18-32, 34 and 35 in respect of the work done (“CIPAA 1”).

[10]On 25.10.2022, China State obtained an adjudication decision against the Respondent for the sum of RM5,285,194.28 together with interest an