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Scanned Judgements…!
No Chance of Success of the Winding-Up Petition The applicant must demonstrate that the intended winding-up petition has no reasonable prospect of success, either legally or factually. This is a core element established in Fortuna Holdings Pty Ltd v. The Deputy Commissioner of Taxation (e.g.,
SIME DARBY ENERGY SOLUTION SDN BHD vs RZH SETIA JAYA SDN BHD - Court of Appeal Putrajaya
,PINNACLE SUPREME SDN BHD vs DSG PROJECTS MALAYSIA SDN BHD - High Court Malaya Kuala Lumpur
,SIME DARBY ENERGY SOLUTION SDN BHD vs RZH SETIA JAYA SDN BHD - Court of Appeal Putrajaya
). Courts consider whether there are substantial grounds to dispute the debt or claim underlying the petition.Irreparable Damage or Harm The applicant needs to prove that they will suffer irreparable harm if the winding-up process proceeds. This element is emphasized across multiple sources, indicating that the injury must be significant and not compensable by damages (
TECHNYGROUP HOLDINGS (M) SDN BHD vs KIDE INTERNATIONAL SDN BHD (ENCLS 1 6 & 7) - High Court Malaya Shah Alam
,PINNACLE SUPREME SDN BHD vs DSG PROJECTS MALAYSIA SDN BHD - High Court Malaya Kuala Lumpur
).Disputed or Substantial Grounds for Debt The debt or claim forming the basis of the winding-up must be substantially disputed or involve serious issues, which supports the no chance of success criterion. For example, disputes under CIPAA or other statutory schemes can suffice if they are substantial (
PINNACLE SUPREME SDN BHD vs DSG PROJECTS MALAYSIA SDN BHD - High Court Malaya Kuala Lumpur
,LION PACIFIC SDN BHD vs PESTECH TECHNOLOGY SDN BHD (NO 1) - High Court Malaya Shah Alam
).Inherent Jurisdiction and Discretion of Court Courts have inherent jurisdiction to grant Fortuna Injunctions to prevent abuse of process or unjust winding-up, and the decision is discretionary. The court considers the totality of circumstances, including the merits of the case and potential abuse (
Kurniaan Maju Sdn Bhd vs HSA Setiamurni Sdn Bhd
,SIME DARBY ENERGY SOLUTION SDN BHD vs RZH SETIA JAYA SDN BHD - Court of Appeal Putrajaya
).Procedural and Substantive Pleadings The applicant must properly plead the elements, including the grounds for dispute and the likelihood of success or failure of the winding-up petition. Failure to disclose necessary facts or to establish the elements can lead to rejection (2025 Supreme(Online)(Kar) 38862, 2025 Supreme(IND)(DEL) 1209).
No Need for Registration of Adjudication Decision A successful adjudication in a related proceeding does not necessarily require registration under statutory provisions (e.g., CIPAA) for the Fortuna Injunction to be granted (
Kurniaan Maju Sdn Bhd vs HSA Setiamurni Sdn Bhd
,GOLDEN PLUS HOLDINGS BERHAD & ORS vs CHINA IDEA DEVELOPMENT LIMITED & ORS - High Court Malaya Kuala Lumpur
).Additional Considerations Courts may also consider whether the application is made to prevent abuse, whether the issues are appealable, and whether the injunction would be just and equitable (
Kurniaan Maju Sdn Bhd vs HSA Setiamurni Sdn Bhd
,Klass Corp (M) Sdn Bhd vs Mkrs Management Sdn Bhd
).To succeed in obtaining a Fortuna Injunction, the applicant must convincingly demonstrate that the winding-up petition has no realistic chance of success and that irreparable harm will ensue if the injunction is not granted. Proper pleadings establishing these elements are crucial, and courts exercise discretion based on the totality of circumstances, including potential abuse of process. The legal principles are rooted in case law such as Fortuna Holdings Pty Ltd v. The Deputy Commissioner of Taxation, emphasizing the importance of substantial dispute and the court's inherent jurisdiction to prevent abuse.
References:-
SIME DARBY ENERGY SOLUTION SDN BHD vs RZH SETIA JAYA SDN BHD - Court of Appeal Putrajaya
,PINNACLE SUPREME SDN BHD vs DSG PROJECTS MALAYSIA SDN BHD - High Court Malaya Kuala Lumpur
,Kurniaan Maju Sdn Bhd vs HSA Setiamurni Sdn Bhd
,TECHNYGROUP HOLDINGS (M) SDN BHD vs KIDE INTERNATIONAL SDN BHD (ENCLS 1 6 & 7) - High Court Malaya Shah Alam
,Klass Corp (M) Sdn Bhd vs Mkrs Management Sdn Bhd
,LION PACIFIC SDN BHD vs PESTECH TECHNOLOGY SDN BHD (NO 1) - High Court Malaya Shah Alam
, 2025 Supreme(Online)(Kar) 38862, 2025 Supreme(IND)(DEL) 1209
Facing a winding-up petition can be a nightmare for any business owner. It threatens not just your company's finances but its very existence, potentially damaging reputation and operations irreparably. In Malaysia, one powerful tool to halt such proceedings is the Fortuna Injunction, named after the landmark Australian case Fortuna Holdings Pty Ltd v The Deputy Commissioner of Taxation. But what does it take to successfully plead for one?
If you're wondering, What elements need to be pleaded to be successful in a Fortuna Injunction?, this guide breaks it down. We'll explore the core requirements, supported by key case law, while integrating insights from related legal principles. Note: This is general information based on precedents and not specific legal advice. Consult a qualified lawyer for your situation.
A Fortuna Injunction is an interlocutory remedy granted by Malaysian courts to restrain a creditor from presenting or advertising a winding-up petition. It's typically sought when the petition is abusive or unlikely to succeed. Courts exercise their inherent jurisdiction to prevent misuse of process, but success hinges on pleading specific elements convincingly. [
#FortunaInjunction, #WindingUpPetition, #InsolvencyLawthe disposal of the Arbitration and a Fortuna Injunction. ... if the court dismisses the Stay Application, does the court have the discretionary power to grant a Fortuna Injunction to restrain the Defendant from presenting a petition to wind up the Plaintiff based on the AD (Fortuna Injunction Application)? ... … As such, we were inclined to agree with the proposition that, for the purpo....
Like a Mareva Injunction or an Anton Piller Order, a Fortuna Injunction operates in a pre-emptive manner. ... company if a Fortuna Injunction were not granted had been established. ... [21] In this application, the plaintiff was relying on the first branch of the principle governing the granting of a Fortuna Injunction. Hence, it was for the plaintiff to establish both....
to an application for a Fortuna injunction. ... No Fortuna injunction can be granted on this basis. ... against a company is known as a “Fortuna Injunction”, taking its name from the case of Fortuna Holdings Pty Ltd v. ... [84]For the record, upon my refusal of the Fortuna injunction application at the conclusion of the hearing, the ....
Our Decision [17] We would start our analysis by looking at the basic premise of the LJC's decision that in considering the exercise of his discretion whether or not to grant a Fortuna injunction in this case, the judge has to also bear in mind the need ... [5] The kind of injunction by which an intended winding-up petition is sought to be restrained is known as a "Fortuna injunction" ....
[25] These two grounds form the basis of the plaintiff's arguments in its application for a Fortuna Injunction. ... As such, the first ground relied on by the plaintiff in its application for a Fortuna Injunction - the existence of a debt that is disputed on substantial grounds - would be applicable. ... Under this second situation, the Court in ASM Development, quoting McGarvie J in Fortuna Holdings Pty....
[72] If an adjudicated sum may still be seriously disputed under a s 30 remedy under the CIPAA, then there would not have been any need for the Principal to pay the sum over to the successful Claimant. ... It need not even be registered under a s 28 of CIPAA 2012. ... Analysis And Decision The Law On Fortuna Injunction [19] The orders sought by the Applicant are in the nature of a Fortuna#HL_E....
Companies Act 2016 , a successful litigant in an adjudication proceeding need not have to register the said adjudication decision under s 28 of the CIPAA. .... ... The merits of the appeal are not matters this court ought to be concerned with in determining if a Fortuna Injunction should issue.... ... [26] Whether the Enforcement OS would become "superfluous" is a matter for the court hearing that application and is not r....
Fortuna Holdings Pty Ltd v. ... Wan Muhammad Amin Wan Yahya J:[1] This was the Plaintiff's application for a Fortuna injunction to restrain the Defendant from filing a winding up petition
[13] The fact that the Fortuna Injunction was dismissed is no bar to this Court granting an Erinford Injunction. In Subashini Rajasingam v. ... [11] To prevent the Defendant from proceeding to file a winding up petition, the Plaintiff applied to this Court for a Fortuna injunction. ... The Plaintiff has since filed an appeal against the dismissal of the Fortuna Injunction#HL_....
The process should not be hindered through the granting of a Fortuna injunction. To do so would be curtailing the legitimate rights of would-be petitioners. To do so would be permitting applicants for Fortuna injunctions to abuse the process of the Court. ... The Applicable Law And Principles [25] The genesis of Fortuna Injunction can be traced to the case of Fortuna Holdings Pty Ltd v....
Grant of mandatory injunction is governed by Section 39 of the Specific Relief Act which contains two important elements. It is only after fulfillment of the aforesaid conditions, a decree for mandatory injunction can be granted. The Court has to determine what acts are necessary in order to prevent the breach of obligation and secondly the requisite act must be such as the Court is capable of enforcing. These two elements have to be considered before granting a decree for mandatory ....
(v) The Petitioner, on the other hand, had no explanation as to why the action was not taken for all these years. Therefore, the Petitioner had failed to establish four elements constituting the INDRP policy which had to be fulfilled for a complaint to be successful.
En route, the hero encounters various evil sorts, all of whom he despatches with his martial arts moves. In these paragraphs, the Plaintiffs say that the key novelty lies in the presence of a large crime-lord-controlled building under assault from the police, who find themselves under attack and have to fight their way out, and the only way out is by going up. But let us take the key elements is stated in paragraphs 3.2 and 3.8, because we are all today constrained by what is pleaded....
There is no quarrel with regard to that proposition of law. At the same time, in order to attract the provisions of a particular enactment, at least bare facts or fundamental facts or basic facts to invite the application of such law or Statute, have to be made out in the pleadings. It is a fact that has to be pleaded before the Court below that the petitioner is either the author or the petitioner has got the right to infringe the copyright in respect of the software, in case where the petiti....
It is this fundamental principle which binds every court. It is this very principle which shall be violated if the present appeal is accepted. 1. What is not the pleaded, cannot be proved, what is admitted need not be proved.
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