Nor Azah binti Awin v Small Medium Enterprise Development Bank Malaysia Berhad & Anor

Appellant(s): Nor Azah Binti Awin

Respondent(s):

• Small Medium Enterprise Development Bank Malaysia Berhad
• Ketua Pengarah Insolvensi

• YA Dato' Azizul Azmi Bin Adnan
• YA Dato' Ahmad Fairuz bin Zainol Abidin
• YA Datin Paduka Evrol Mariette Peters

• The Appellant, an undischarged bankrupt for over 12 years, aged 72, and in poor health, was issued a certificate of discharge by the Director General of Insolvency (DGI) under section 33A of the Insolvency Act 1967.
• The bankruptcy arose from debts owed to two creditors, who subsequently objected to the discharge under section 33B of the Act.
• The Appellant's bankruptcy estate included Malay Reserved Land which the DGI, being non-Malay, could not vest or dispose of.

• Whether the High Court erred in law by exceeding its jurisdiction under section 33B(6) of the Insolvency Act 1967 by issuing an indefinite prohibition against the DGI issuing a certificate of discharge.
• Whether the High Court misconstrued sections 33A and 33B of the Act by applying the incorrect legal test, conflating the DGI-administered discharge with a court-ordered discharge under section 33.
• Whether the High Court erred by considering the existence of unrealised Malay Reserved Land as a determinative factor for suspending the certificate of discharge.

• The Court allowed both appeals, finding that the High Court erred in law.
• The High Court's order for an indefinite prohibition was set aside as it exceeded the two-year statutory limit under section 33B(6).
• The Court held that the DGI's discretion under section 33A should be reviewed based on principles of judicial review (illegality, irrationality, procedural impropriety), and the existence of unrealised Malay Reserved Land, which the DGI could not realise due to legal restrictions, did not automatically preclude discharge.