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LW/APR2010/LAW534

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE

INSOLVENCY I

COURSE CODE

LAW534

EXAMINATION

APRIL 2010

TIME

3 HOURS

INSTRUCTIONS TO CANDIDATES

1.

This question paper consists of THREE (3) parts :

PART A (6 Questions)
PART B (2 Questions)
PART C (1 Question)

2.

Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the
invigilator.

4.

Candidates are allowed to bring in the following materials (unannotated):

(i)
Bankruptcy Act 1967
(ii)
Bankruptcy Rules 1969
(iii)
Bankruptcy (Fees) Rules 1969
(iv)
Bankruptcy (Cost) Rules 1969

5.

Please check to make sure that this examination pack consists of:
(i)
the Question Paper
(ii)
an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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LW/APR2010/LAW534

PART A
QUESTION 1
Define a bankruptcy process.
(5 marks)
QUESTION 2
Explain section 3(1) (a) of the Bankruptcy Act 1965.
(5 marks)

QUESTION 3
Explain the ratio decidendi and brief facts of Re Peter Wong [1958] MLJ 116 pertaining to
bankruptcy proceedings.
(5 marks)

QUESTION 4
Describe a personal service of the bankruptcy notice in relation to the Bankruptcy Act 1967
and the Bankruptcy Rules 1969.
(5 marks)

QUESTION 5
Clarify what is meant by "discharge of a bankrupt by the Director General of Insolvency's
Certificate".
(5 marks)

QUESTION 6
Briefly explain the facts and ratio decidendi relating to the discharge of a bankrupt in the
case of Re Ang Ah Kang [1994] 2 CLJ 738.
(5 marks)

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LW/APR2010/LAW534

PARTB
QUESTION 1
Robert is an American who owns a service apartment in Bangsar. Zainah obtained a
judgment against Robert for some renovation work she did for him in the apartment. It has
been six years since Zainah obtained the judgment against Robert. Now, Zainah wants to
enforce the judgment against Robert through bankruptcy proceedings. She has appointed
you as her advocate and solicitor. Advise Zainah as to her chances of succeeding in
enforcing the judgment via this mode of execution.
(20 marks)

QUESTION 2
On 1 June 2009, Untung Bank Bhd served a bankruptcy notice on Leeceek. The bankruptcy
notice was dated 1 February 2009. The amount claimed in the bankruptcy notice exceeds
the amount owed by Leeceek to Untung Bank Bhd. The Creditor's Petition was filed against
Leeceek on 1 July 2009. The interest stipulated in the Creditor's Petition was at a rate of 8%
per annum.
Advise Leeceek as to how he could challenge the bankruptcy petition.
(20 marks)

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LW/APR 2010/LAW534

PARTC
QUESTION 1
On 1 April 2009, Kee Lar Kar sold his interest in a property to his sister-in-law, Baguih for
RM80,000. The current market value of the interest at that time was RM70,000. A creditor's
petition was presented against Kee Lar Kar on 1 May 2009. A Receiving Order was granted
against Kee Lar Kar on 1 June 2009. When the transfer of the property was made to Baguih,
she did not know that Kee Lar Kar was having financial trouble settling his debt to his
creditors.
An Adjudication Order was granted against Kee Lar Kar three months after the Receiving
Order. Gaya Bank Bhd, presented the creditor's petition. In fact, Kee' Lar Kar defaulted in his
installments to Gaya Bank Bhd since 3 January 2009.
Three (3) years ago, Kee Lar Kar had to transfer a bungalow in Ampang to Ritchie due to
aKee Lar Kar's gambling habit.
Advise the Director General of Insolvency as to his duties and the extent of his powers
pertaining to this matter.
(30 marks)

END OF QUESTION PAPER

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