UIS 4612- LAW OF INSOLVENCY

Tri 2, 2020/2021
TUTORIAL 5- TUTORIAL QUESTIONS

QUESTION 1
On 15 March 2017 BBB obtained Judgment against Borrower at the Melaka High Court for
the sum of RM 350,000-00 with interest and costs. On 5 June 2017 personal service of Notice
of Bankruptcy was effected on Borrower. As Borrower did not respond to the bankruptcy
Notice, BBB proceeded to apply for a creditor’s petition, served it on 15 Nov. 2017. Borrower,
by borrowing from various family members paid BBB a sum of RM150,000-00 and was
seeking time to pay the balance on the basis that he was trying to sell of certain property that
he has in Singapore that was valued at more than RM1 million. Meanwhile bankruptcy order
was made against Borrower on 23 December 2017. Borrower seeks your advice on setting aside
the bankruptcy order as he was not aware of its service since he was busy in Singapore
arranging for the sale of his property.

Advise Borrower.

QUESTION 2 (MMU Supplementary Exam Tri 2, 2019/2020)

Kok Whee is a registered proprietor for a double storey house held under Individual Title PN
12345, Lot 67890, Mukim Petaling, District of Petaling, State of Selangor Darul Ehsan (‘the
said Property’). Kok Whee was adjudicated a bankrupt on 1.4.2018. Prior to that on 1.6.2016,
Kok Whee entered into a sale and purchase agreement with Chiong Mei and transferred the
said Property to Chiong Mei, who is his daughter-in-law with consideration of RM250,000-00.
The market value for the said property is RM550,000-00. The Director General of Insolvency
(‘DGI’) has now filed an application in court claiming that the sale and purchase transaction
and transfer between Kok Whee and Chiong Mei was void against the DGI under section 52(1)
of the Insolvency Act 1967 on the ground that the purported dealing was not genuine or bona
fide for valuable consideration but a voluntary settlement with intention to defraud the
bankrupt’s creditors.

Chiong Mei is unhappy with the action taken by DGI and she claims that she is a bone fide
purchaser for valuable consideration. Chiong Mei now comes to see you and seeks your advice
as to the effect of the sale and purchase agreement between Kok Whee and her. Discuss what
are your legal advice to Chiong Mei? Your answer must be based on the decided cases and
relevant statutes.

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