Tutorial 3

1. Advice the following debtors on the period to comply with the bankruptcy notice:

(i) The bankruptcy notice was served on Mr Lembab at 10.30 am on 5.1.2024.

(ii) The bankruptcy notice was served on Mr Cepat at 3pm on 15.1.2024
(iii) The bankruptcy notice was served on Mr Tak Sure at 4pm on 25.3.2024.

2. Coldplay Bank Berhad had on 2 February 2021 obtained a summary judgment against
Mr Tahir, for an outstanding debt of RM170,000 arising from a housing loan facility
which Coldplay Bank Berhad had granted to Mr. Tahir. The summary judgment was
for the principal sum of RM170,000 with 2% interest calculated on the bank’s base
rate and cost of RM3000. Mr Tahir was unsatisfied with the judgment and had
appealed against the summary judgment. To date, the appeal is pending. Coldplay
Bank Berhad’s solicitors had proceeded for the court to issue a bankruptcy notice
based on the summary judgment. On 1.3.2022 the bankruptcy notice was served on
Mr Tahir which demanded Mr Tahir “…to pay to Coldplay Bank Berhad of No 6
Plaza Coldplay, Petaling Jaya, Selangor a sum of RM170,000, with 2% interest
calculated on the bank’s base rate and cost of RM3000.”

Mr Tahir argues that since his appeal is still pending Coldplay Bank Berhad should
not have served the bankruptcy notice on him. Advice Mr Tahir whether this is a
ground to set aside the BN. Are there any other grounds on which the BN can be set
aside? If there is what is the ground and what procedure should be used to set aside
the BN?

3. Discuss the case of Tractors Malaysia Bhd v Charles Au Yong [1982] 1 MLJ 320
(FC)

4. Corona Sdn Bhd had entered into an agreement with Mr Lockdown for the supply of a
special flour for his cakes on 1.10.2019. On 15 January 2022 Corona Sdn Bhd
obtained judgment in default against Mr Lockdown for the amount of RM150,000
with interest at the rate of 4% per annum from date of judgment until full and final
realisation arising from non-payment of the supply of the special flour to Mr
Lockdown under the agreement. Mr Lockdown did not make any application to set
aside the judgment in default and did not pay the judgment sum to Corona Sdn Bhd.

On 15 March 2022 morning Mr Lockdown was served a BN by Corona Sdn Bhd.

On February 2022 Mr Lockdown filed a claim for damages against Corona Sdn Bhd
for the amount of RM100,000 because the special flour supplied to him by Corona
Sdn Bhd made his cakes taste bitter and he had suffered losses as many of his
customers had complained. He has his customers text and emails of the complains and
his chef also opines that the flour caused the cake to become bitter. Mr Lockdown
comes to you seeking advice on whether he can set aside the BN on the basis that he
has a counterclaim against Corona Sdn Bhd.

(i) Advice Mr Lockdown on whether he can set aside the BN on the grounds that
he has a counterclaim. What is the procedure to set aside the BN on the
grounds that a debtor has a counterclaim.

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(ii) How would your advice differ if instead of setting aside the BN on the
grounds that he has a counterclaim, Mr Lockdown comes to you and informs
you that the BN which was served on him had claimed for RM450,000. The
amount was calculated based on the principle sum of RM150,000 plus interest
calculated at the rate of 4% per annum from 15.1.2022 until 15.3.2022,
penalty interest of 8% per annum from 1.10.2019 to date of judgment and
stamp duty of RM100.