Must I obtain a Judgment BEFORE filing a winding up petition against my debtors?

“Versi Bahasa Malaysia”

This is one of the most frequently asked questions.   A short answer is no.  The provision of section 218 of the Companies Act 1965 and the new sections 466 and 467 of the Companies Act 2016 did not provide that a judgment must be obtained prior to filing of a Winding Up Petition.

There are however, many colleagues at law who will advise you as a matter of prudence to obtain a judgment in a civil court before presenting/ filing the Companies Winding Up Petition.

Disputed Debts

Generally, if there are no bona fide disputes   (disputed on substantial grounds),  a creditor need not obtain a judgment in a civil court before presenting/ filing  a companies winding up petition.

Reported Authorities

These are matters handled by our Mr Alex Chang where a Companies Winding Up Petition was presented in the absence of a Judgment first had and obtained:

Campana Distributor Sdn Bhd v Amseal Engineering (M) Sdn Bhd [1998] 2 AMR 1330

Petro-Pipe Industries (M) Sdn Bhd v FW Industries Berhad [2006] 1 LNS 254

Vearrian Tanzania Ltd (Formerly known as Virian Tanzania Ltd) v CNLT (Far East) Berhad, the ground of judgment dated January 16, 2009

KTL Sdn Bhd v Azrahi Hotels Sdn Bhd [2003] 5 MLJ 503

PECD Construction Sdn Bhd v Freehold POint Sdn BHd [2008] 3 CLJ 215

NCK Wire Products Sdn Bhd v Konmark Corp Sdn Bhd [2001] 6 MLJ 57

CCM Chemicals Sdn Bhd v Urethane Technologies Sdn Bhd [2007] 3 MLJ 676

FW Industries Berhad v Suitech Sdn Bhd [2008] 3 CLJ 210