JUDGMENT

Varghese George JC:

(1) The hearing before me involved two separate diametrically opposed applications which arose from two separate proceedings filed in court but which were commonly related to the liquidation of the same company. The applications centered around common issues of law and of facts and hence it was by consent heard together for purposes of expediency.

(2) The company in liquidation was one Fokas Perkasa Sdn Bhd ordered to be wound up by the court on 11 March 2004 in KL High Court Companies (Winding-Up) No: D3-28-168-2003 on the petition presented by one Serampai Istimewa Sdn Bhd. The official receiver had been initially appointed by court to be liquidator of the company. However on 21 July 2004 the court proceeded to appoint:

(i) Mr. Heng J, Leng (Mr. Heng) and

(ii) Mr. Michael Joseph Monteiro (Mr. Monteiro)

jointly and severally to replace the official receiver as liquidator of the said company.

(3) This particular proceedings, Notis Usul D6-25-7-2007, was an action brought by three shareholders/contributories of the said company against Mr. Heng and Mr. Monteiro for declarations that three items of payments made by them in their capacity as liquid