28 July 2020

Goldpage Assets Sdn Bhd v Unique Mix Sdn Bhd [2020] MLJU 723

In Goldpage Assets Sdn Bhd v Unique Mix Sdn Bhd, the Malaysia High Court held that unsecured creditors can intervene, file affidavits and oppose an application for a judicial management order (“JMO application”). The High Court was of the view that the Companies Act 2016 (“CA 2016”), in particular Part III Division 8 subdivision 2, sections 404, 405 and 409, does not expressly prohibit an unsecured creditor from being heard at the hearing or opposing a JMO application. The High Court was also of the view that the Companies (Corporate Rescue Mechanism) Rules 2018 (“CCRMR 2018”), in particular Rule 13 which only allows certain creditors to oppose a JMO application, must be read in conjunction with CA 2016. Further, the High Court noted that Rule 2 of the CCRMR 2018 provides for recourse to Order 15 rule 6 (2)(b)(ii) of the Rules of Court 2012, which allows any interested party to intervene if his legal rights and interest in relation to the subject matter of the action would be directly affected by any order made in the action.

This decision provides clarity in relation to this procedural issue as it goes against common practice where only secured creditors with debentures have locus standi to appear at the hearing of a JMO application.