JUDGMENT

Gopal Sri Ram JCA:

This appeal raises a point of importance touching upon jurisdiction of the High Court in bankruptcy proceedings. At issue is the question whether, upon annulment of an adjudicating order and rescission of a receiving order, a High Court in bankruptcy has power summarily to direct an assessment of damages in favour of the debtor. The matter arose in this way.

On 3 April 1984, the appellant before us obtained judgment in Civil Suit C431 of 1984 for the sum of RM1,475,529.68. It was a judgment in default of appearance. Later, on 4 April 1986, acting on the judgment, the appellant, as petitioning creditor instituted bankruptcy proceedings against the respondent which culminated in the making of receiving and adjudicating orders on 10 March 1986.

On 20 October 1987, the respondent took out a motion to set aside these orders. He also asked for other relief, including an order that "damages be paid by the petitioning creditor to the debtor". On 19 June 1992, the learned judge who heard the respondent's motion granted an order in its terms. Apart from annulling the adjudicating order and rescinding the receiving order, he directed that damages be paid by the a