The Federal Court's decision in the case of
Mansion Properties Sdn Bhd v Sham Chin Yen,(1) regarding applications made by a company or its creditors under Section 368 of the Companies Act 2016 to restrain proceedings against the company under a proposed scheme of arrangement appears to be a welcome decision. It has provided clarity on the previously rather ambiguous procedure to be adopted when making such applications.
Facts
The appellant, Mansion Properties Sdn Bhd, the developer of a housing project known as D'Maison, failed to deliver vacant possession of the condominium units of D'Maison within the stipulated time. The respondents, purchasers of the condominium units, filed a claim against the appellant for liquidated ascertained damages in 2017.