UIS4612 Insolvency Law MMU Midterm Question
UIS4612 Insolvency Law MMU Midterm Question
UIS4612 Insolvency Law MMU Midterm Question
NAME:………………………………………
MULTIMEDIA UNIVERSITY
SECOND TRIMESTER MID TERM EXAMINATION, 2020/2021 SESSION
(Mid Term Examination)
INSTRUCTIONS TO STUDENTS
1. This Question paper consists of 2 pages (including the cover page) with 1 Question only.
2. This paper carries 20 marks and it will be adjusted to a total of 10 marks only. The
distribution of the marks for each question is given.
3. Please write all your answers in the Answer Booklet provided. Your answers must be based
on the decided cases and relevant statutes.
4. Students are only allowed to bring in CLEAN AND ORIGINAL COPIES of (i) Insolvency
Act 1967; (ii) Insolvency Rules 2017; (iii) Insolvency Voluntary Arrangement Rules 2017;
and (iv) Rules of Court 2012 into the exam venue. “Clean” is defined to include no tagging,
no annotation either by the publisher or anyone else, and no erased marking. Highlighting
and underlining are also prohibited.
WHS
UIS4612 LAW OF INSOLVENCY 8 January 2021
QUESTION 1
On 1.7.2019, Mr. A obtained judgement against Ms. B in the Sessions Court for a sum of
RM250,000-00 with interest at 5% per annum from date of judgement to date of realisation and
costs RM1,500-00.
On 1.9.2019, Thursday at 4.00 p.m., Mr. A served a bankruptcy notice on Mr. B demanded a
sum of RM300,000-00 comprising the principal sum of RM250,000-00, interest of RM48,500-00
calculated at the rate of 8% per annum from the date of judgement to date of realisation and costs
of RM1,500-00. Mr. B ignored the bankruptcy notice which was personally served on him.
On 11.9.2019, Mr. A filed and served a creditor’s petition together with an affidavit verifying the
petition on Ms. B. Mr. A’s creditor’s petition was dated 11.9.2019 while the affidavit verifying
the petition was affirmed on 10.9.2019. Ms. B on receiving the creditor’s petition paid Mr. A the
judgment sum in instalments leaving a balance sum of RM40,000-00.
The creditor’s petition is fixed for hearing next month. Ms. B intends to file an affidavit to
oppose the creditor’s petition.
(i) whether Ms. B can challenge the excessive amount in the bankruptcy notice at this stage?
(iv) whether Ms. B’s procedure to oppose the creditor’s petition is correct?
(v) the difference between ‘to challenge a petition’ and ‘to show cause against a petition’.
(4 marks each x 5)
(Total: 20 marks)
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