Lembaga Kumpulan Wang Simpanan Pekerja v Hai Kiong Niang & Anor

Appellant(s): Lembaga Kumpulan Wang Simpanan Pekerja

Respondent(s): Hai Kiong Niang

Pihak Ketiga: Jabatan Insolvensi Malaysia

• YA Datuk S. Nantha Balan A/L E.S. Moorthy
• YA Dato' Paduka Azman Bin Abdullah
• YA Dato' Ahmad Kamal Bin Md. Shahid

• The appellant, a judgment creditor, initiated bankruptcy proceedings against the respondents, who were directors of a company, leading to bankruptcy orders being issued against them in 2021.
• The respondents subsequently applied to annul the bankruptcy orders under section 105 of the Insolvency Act 1967, asserting that the company had settled the initial debt specified in the bankruptcy notice.
• The High Court allowed the annulment, despite the appellant's objections regarding other outstanding debts (Proofs of Debt) and the respondents' non-compliance with statutory requirements, such as filing a Statement of Affairs.

• Whether the High Court erred in annulling the bankruptcy orders under section 105 of the Insolvency Act 1967, particularly concerning the requirement for all debts to be paid in full.
• Whether the failure of the bankrupts to file a Statement of Affairs, a mandatory requirement under the Insolvency Act 1967, should preclude an annulment.
• Whether the High Court correctly disregarded other outstanding Proofs of Debt filed by the judgment creditor when considering the annulment application.

• The Court of Appeal held that the High Court erred in annulling the bankruptcy orders as the respondents failed to prove that all their debts were paid in full, a prerequisite under section 105(1) of the Insolvency Act 1967.
• The Court emphasized that the Director General of Insolvency must be involved in debt settlements for bankrupt individuals, and the failure to file a Statement of Affairs constitutes serious statutory non-compliance.
• The appeals were allowed, setting aside the High Court's annulment orders and restoring the Deputy Registrar's decision to dismiss the annulment applications with liberty to file afresh upon remedying the breaches.