Chapter 5 - Excessive Sum in Bankruptcy Notice

Question 1

EXCESSIVE SUM IN BN

Overview

Answer 1

1) General rule
2) Time & how to challenge
3) Interest on judgment
4) Understatement of interest

Question 2

EXCESSIVE SUM IN BN

General Rule

Answer 2

1) S.3(2)(ii):
- BN shall not be invalidated by reason only that the sum specified exceeds the amount actually due.
2) Re Loh Kok Hua ex p Ban Hin Lee Bank:

• BN shall not be invalidated merely because the sum in BN exceeds the amount actually due;
• JD cannot raise such issue, unless he gives notice disputing the validity of BN on the ground of such error within 7 days of service of BN.

Question 3

EXCESSIVE SUM IN BN

Time & how to challenge

Answer 3

Chin Sin Lian v Delta Finance Bhd:

• Debtor shall challenge it at BN stage;
• It can be done by giving notice to the creditor within 7 days of service of BN.

Question 4

EXCESSIVE SUM IN BN

Interest on judgment

Answer 4

Moscow Narodny Bank Ltd v Ngan Ching Wen:

• interest of more than 6 years cannot be claimed;
• 6 years is calculated from the date of judgment.

Question 5

EXCESSIVE SUM IN BN

Understatement of interest

Answer 5

Re KV Sathasivam ex p Phileo Allied Bank (Malaysia) Bhd:

• The understatement of interest could not have embarassed the JD;
• The BN made it clear on what was required to be paid.
• Therefore, the BN is not invalidated.

Question 6

EXCESSIVE SUM IN BN

Recent Application

HC, 2020

Answer 6

RE CHUA LIANG HONG; EX P: KUALA EXCEL SDN BHD

• An error in the amount stated in a bankruptcy notice should be treated as a minor error and should be cured by a simple amendment made thereto.
• OTF, the overstated amount is small, remaining amount due is still over the statutory amount & JD was well aware of the error.
• since it cannot mislead, prejudice or cause any injustice to the judgment debtor, the bankruptcy notice cannot be invalidated on the ground of such error per se.