Tutorial 7

1. Ms Cantik is a sole proprietor of a successful spa business with many well-heeled

customers. Since business has been good Ms Cantik has taken a business loan from Kodaline
Bank Berhad (Bank) to enable her to expand her spa business. Unfortunately, due to the
Covid 19 pandemic, the Government has imposed a Movement Control Order which caused
Ms Cantik to suspend her spa business. This has affected her income and Ms Cantik was not
able to pay her loan to the Bank. The Bank initiated civil action and final judgment was
obtained against Ms Cantik for the amount of RM500,000. The judgment sum remained
unpaid.

Bankruptcy proceedings were initiated against Ms Cantik. A bankruptcy notice was issued
and served on Ms Cantik on 1.4.2020. A bankruptcy petition was presented on 30.4.2020. On
30.5.2020 Ms Cantik was adjudged bankrupt.

It was discovered that on 14.3.2020 Ms Cantik sold her luxurious penthouse condominium to
her niece for the price of RM50,000.

On 2.6.2020 Ms Cantik sold one of her shoplots in Kuala Lumpur to her aunty Datin Molek,
for RM100,000. Datin Molek then sold the shoplot to Mr Khairy Jamaluddin who was
looking for a premise for his consultation business with a purchase price of RM1,000.000.

Advise Ms Cantik on the legal status of the transfer of the properties made by Ms Cantik. Mr
Khairy Jamaluddin also seeks your advice on the transfer of the property to him from Datin
Molek.

2. Mr. Faizal Tai Tai was adjudged bankrupt on 1.8.2016 because he stood as guarantor
for his brother who took a loan from Kodaline Bank for the purchase of a business premise
for his consultancy business. Mr Faizal has been diligently paying the amount agreed to with
the Director General of Insolvency and this has settled the principle debt. Due to his age, he
is no longer employed and is unlikely to be able to secure another job. He also does not have
any other assets.

Mr Faizal Tai Tai seeks your advice on whether he can be discharged from being a bankrupt.
Advise Mr Faizal Tai Tai on the options that he has.

3. Mr Foo was made bankrupt on 1 March 2018 based on a judgment obtained against
him by Kodaline Bank in the sum of RM300,000. He has been paying the amount agreed to
with the Director General of Insolvency. Recently, Mr Foo entered a Malaysia Got Talent
competition. He won the competition and the prize money was handed to the Director
General of Insolvency for the full settlement of his debt. What action can Mr Foo take so that
he is no longer a bankrupt?