Uis4612-Law of Insolvency Tri 2, 2020/2021 Tutorial 3 QUESTION 1 (Adopted From CLP 2009)

UIS4612- LAW OF INSOLVENCY
Tri 2, 2020/2021
TUTORIAL 3
QUESTION 1 (adopted from CLP 2009)
On 3.3.2016 Oriental Bank Bhd.(OBB) obtained Judgment in Default against Tom in the Kuala
Lumpur High Court for USD 250,000/- together with interest and costs. Tom did not apply to set
aside the default judgment.
On 5.5.2016 OBB filed and served a Bankruptcy Notice on Tom. Tom ignored the Bankruptcy
Notice which was served on him personally. OB converted the said judgment sum into RM as at
the date of the judgment.
On 3.6.2016 OBB filed and served a Creditor’s petition together with an affidavit verifying the
petition on Tom. The Creditor’s Petition was dated 2.6.2013 while the affidavit verifying the
petition was dated 2.6.2016 and was attested by a solicitor from Kuching, Sarawak. The Creditor’s
Petition is fixed for hearing at the Kuala Lumpur High Court on 4.7.2016
Tom intends to set aside the Bankruptcy Notice and oppose the Creditor’s petition on the following
grounds:
(i) The judgment in default is not a final judgment

(ii) The bankruptcy notice is irregular because OBB converted the judgment which was in USD
into RM as on the date of the judgment rather than on the date of the bankruptcy notice.
(iii) The creditor’s petition is defective because of the affidavit verifying the petition was affirmed
prior to the presentation of the creditor’s petition.
(iv) The creditor’s petition is defective because it was affirmed by a solicitor in Kuching,
Sarawak.
(v) The affidavit verifying the petition is insufficient to prove the debt. The debt must be proved
again at the hearing of the petition.
Advise Tom on the viability of the grounds.
QUESTION 2 (adopted from CLP 2011)
Borrow Easy Bank Bhd. (BEBB) obtained judgment against Linda Hutang on 10.1.2018 “for the
sum of RM230,000 and interest thereon at the rate of 10% p.a. calculated form the date of judgment
to the date of full settlement”.
1
On 2.3.2018 BEBB issued a Bankruptcy Notice against Linda Hutang for the sum of RM230,000/-
and interest at the rate of 10% calculated from the date of judgment to the date of the Bankruptcy
Notice dated 2.3.2018.
Although Linda Hutang resided at A-10, Jalan Tengah, Kampung Attap, attempts at service of the
Bankruptcy Notice and Creditor’s petition was done at 10-A Jalan Setengah Kampung Attapchi.
An order for substituted service of the Bankruptcy Notice and Creditor’s petition was obtained on
the grounds that Linda Hutang could not be located. Both the Bankruptcy Notice and the Creditor’s
Petition were served by substituted service by posting the documents to 10-A Jalan Setengah
Kampung Attapchi, and by advertisement in the “Star” newspaper. Receiving and Adjudication
Orders were then obtained against Linda Hutang on 10.12. 2018
Linda Hutang now appoints you to set aside the Bankruptcy Order. What are the grounds for such
application?
QUESTION 3
Bank Kaya Berhad (‘BKK’) wants to proceed with creditor’s petition against Mr Hutang who has
not complied with the bankruptcy notice served on him by BKK. BKK was instructed by its
solicitors to execute the creditor’s petition and affidavit verifying the petition to enable them to
proceed with the bankruptcy proceedings. The creditor’s petition and affidavit verifying the petition
were executed on 10.3.2020. The creditor’s petition and the verifying affidavit were filed into court
on 14.3.2020 and were then served on you as solicitors for the debtor, Mr Hutang.
You have notified Mr Hutang regarding the creditor’s petition. He now seeks your advice on the
following:
(i) Whether the creditor’s petition was properly served on him;
(ii) Whether the creditor’s petition was invalid because the verifying petition was affirmed
before the creditor’s petition was presented.
On 1.4.2020, you were informed by Mr. Hutang’s wife that he has passed away. Mr Hutang’s wife
wants to know whether the bankruptcy proceeding will continue. Advice Mr Hutang’s wife.
*** End of Document ***

Uis4612-Law of Insolvency Tri 2, 2020/2021 Tutorial 3 QUESTION 1 (Adopted From CLP 2009)

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Uis4612-Law of Insolvency Tri 2, 2020/2021 Tutorial 3 QUESTION 1 (Adopted From CLP 2009)

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UIS4612- LAW OF INSOLVENCY

(i) The judgment in default is not a final judgment

Advise Tom on the viability of the grounds.

QUESTION 2 (adopted from CLP 2011)

(i) Whether the creditor’s petition was properly served on him;

* End of Document *

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