Law

The High Court in Exxobrite Sdn Bhd v Value Plus Industries Sdn Bhd (grounds of judgment dated 29 July 2022) dealt with the moratorium effect of a judicial management order and the insolvency repercussions arising from the judicial management process.

Summary of the Decision and Significance
Grounds by: Nadzarin bin Wok Nordin J

The company, Value Plus, was placed into judicial management. As part of the judicial management process, the judicial manager had carried out the proof of debt exercise and drew up the judicial manager’s Statement of Proposal. The creditor, Exxobrite, had its debt admitted in the judicial management process.

While the judicial management order was still subsisting, Exxobrite issued a winding up statutory demand for the sum of approximately RM73,000.00.

Subsequently, Exxobrite filed a winding up petition based on both section 466(1)(a) and 466(1)(c) of the Companies Act 2016 (CA 2016). Section 466(1)(a) is

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