JCW

Alvin was the counsel for Delphax (Respondent). This is a case on winding-up petition by the Petitioner against Delphax on the ground of Delphax’s “inability to pay” an undisputed judgment debt. Even though the case was not decided in favour of the Respondent, the Court has decided on points of law i.e. the procedural provisions including Rules 22, 25, 26 and 194 (1) of the Companies (Winding-Up) Rules 1972 and Sections 4, 12, 20, 127, 176, 218, 243 and 350 of the Companies Act 1965. The High Court also held that the test to be applied is the test of “inability to pay” and in the event the “white knight” is able to discharge the liability of the Respondent, the liquidator or any creditor or contributory of the Respondent may apply for a permanent stay of the winding-up proceedings under Section 243(1) of the Companies Act 1965.