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LW/OCT 2009/LAW534

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE

INSOLVENCY 1

COURSE CODE

LAW534

EXAMINATION

OCTOBER 2009

TIME

3 HOURS

INSTRUCTIONS TO CANDIDATES

1.

This question paper consists of THREE (3) parts :

PART A (6 Questions)
PART B (2 Questions)
PART C (1 Question)

2.

Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the
invigilator.

4.

Candidates are allowed to bring in the following materials (unannotated):

(i)
Bankruptcy Act 1967
(ii)
Bankruptcy Rules 1969
(iii)
Bankruptcy (Fees) Rules 1969
(iv)
Bankruptcy (Cost) Rules 1969

5.

Please check to make sure that this examination pack consists of:
(i)
the Question Paper
(ii)
an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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LW/OCT 2009/LAW534

PART A
QUESTION 1
State any TWO (2) persons maybe declared a bankrupt and the conditions subject to which
they can be declared a bankrupt.
(5 marks)

QUESTION 2
Define reputed ownership and its effect on the Director General of Insolvency.
(5 marks)

QUESTION 3
Based on the Bankruptcy Act 1967, explain TWO (2) acts of bankruptcy.
(5 marks)

QUESTION 4
With support of a case, explain a circumstance where a judgment creditor is not in a position
to enforce judgment.
(5 marks)

QUESTION 5
What are the effects of discharge of a bankrupt?
(5 marks)

QUESTION 6
Explain as to how service of a bankruptcy notice can be done.
(5 marks)

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LW/OCT 2009/LAW534

PARTB
QUESTION 1
Explain how a bankrupt can be discharged. Support your answer with the relevant sections
of the Bankruptcy Act 1967 and case law.
(20 marks)

QUESTION 2
On 1 st February 2007, Meehun bought a luxury car for himself by cash. Meehun bought a
house by cash for his newly wedded wife on 1 st January 2008 as a wedding gift. On 1 st
January 2009, Meehun was adjudicated a bankrupt. Advise the Director General of
Insolvency on whether the settlements of Meehun's car and house for Meehun's wife are
void against the Director. Support your advice with relevant provisions of the Bankruptcy Act
1967 and case law, if any.
(20 marks)

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LW/OCT 2009/LAW534

PARTC
QUESTION 1
Kaiya Sdn Bhd obtained a judgment in default against Seegak on 1 st March 2008 in a breach
of contract suit. Kaiya Sdn Bhd served a bankruptcy notice on Seegak on 1 s t March 2009.
Upon receiving it, Seegak ignored the notice because he was just about to leave for an
overseas honeymoon trip with his newly wedded wife, Canteek.
Seegak sold and transferred his house and all his shares to his wife with minimal
consideration on 1 s t April 2009. On 1 st August 2009, Kaiya Sdn Bhd served a creditor's
petition on Canteek. The court granted a Receiving Order and Adjudication Order two
months later. The amount stated in the creditor's petition is RM88, 800. The interest
demanded from Seegak is eight per centum per annum.
Seegak has appointed you as his advocate and solicitor in this bankruptcy matter. Advice
Seegak on:
i)

The possible ground(s) to challenge the bankruptcy notice,

ii)

The possible ground(s) upon which the bankruptcy petition can be challenged, and

iii)

The procedures to set aside the bankruptcy petition.

(30 marks)

END OF QUESTION PAPER

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