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2025 MarsdenLR 1155

HIGH COURT MALAYA KUALA LUMPUR
HEW KIANG HOE & ANOR – Appellant
Versus
SHENCOURT PROPERTIES SDN BHD (MESSRS KASSIM TADIN WAI & CO (A FIRM) & ANOR .... – Respondent
[Post Winding Up Suit No: WA-28PW-750-12/2024 Companies (Winding-Up) No: D4-28-44-2002]



Petitioner Advocates:Ivanpal Singh Grewal,Datin Harwinder Kaur,Darren Tay,Keshvinder Kaur ,Respondent Advocate: Aizatul Aina,Siti Mafuza

JUDGMENT

Saheran Suhendran JC:

[1] These Grounds concern my decision on an application filed by way of Encl 1 (as amended to Encl 23) to reverse the decision of the current liquidator of the respondent ("Shencourt") in finding that the legal fees of the solicitors of the liquidator (Kassim Tadin and AJ Ariffin) incurred in the course of winding up, were not conferred priority over other creditors.

[2] I granted prayer 1 of Encl 23 and set aside the OR's decision of 21 June 2024 with no order as to costs.

[3] In short, I held that post-liquidation legal fees authorised on the instructions of the liquidator and which contribute to and benefit the estate, are preferential payable in priority to the other unsecured creditors of the company, whether under s 292(1)(a) or under the Salvage principle in insolvency under common law or in equity.

[4] The Grounds of Judgment of this previous decision was published at Messrs Lassim Tadin Wai & Co & Anor v. Shencourt Properties Sdn Bhd; Hew Kiang Hoe & Anor (petitioners); Chai Fook Chong (aggrieved Party) ("Grounds 1").

[5] The abbreviations and acronyms used in Grounds 1 are adopted herein.

The Appeal

[6] Kassim Tadin issued seven (7) invoices between 30 November 2017 and 21 January 2019, totaling RM1,768,000.00. The 2nd Applicant, AJ Ariffin, issued a consolidated invoice dated 3 December 2018 in the sum of RM6,000,000.00. These invoices were not disputed by the liquidators.

[7] Given that the invoices were outstanding for a long period of time, on the request of Counsel for the applicants and with the consent of the OR, I ordered that the invoices be paid within 30 days.

[8] At a case management on 18 November 2025, I was informed by the OR that the OR was unable to pay the bills within the time stated. With the consent of Counsel for the applicants and the OR, I extended the time for payment until 21 days after the disposal of W-02(A)-658-04/2024.

[9] It was from this order extending time that this appeal was filed under Encl 50.


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