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BA-28NCC-215-03/2025 Kand. 18/11/2025 14:35:41 IN THE HIGH COURT OF MALAYA AT SHAH ALAM IN THE STATE OF SELANGOR DARUL EHSAN, MALAYSIA COMPANIES WINDING-UP NO: BA-28NCC-215-03/2025 In the Matter of Section 465(1)(e) and 466(1)(a) of the Companies Act, 2016. And In the Matter of West Consortium Haulage Sdn. Bhd. (Company No. 201601009659 (1180587-P)) BETWEEN YONMING AUTO (WESTPORT) SDN. BHD. (COMPANY NO. 201401002702 (1078776-X)) ... PETITIONER AND WEST CONSORTIUM HAULAGE SDN. BHD. (COMPANY NO, 201601009659 (1180587-P)) ... RESPONDENT GROUNDS OF JUDGMENT (Enclosure 1 — Winding-Up Petition) Introduction 1. This is a petition filed by the Petitioner, Yonming Auto (Westport) Sdn. Bhd., seeking an order to wind up the Respondent, West 1 Consortium Haulage Sdn. Bhd., pursuant to sections 465(1)(e) and 466(1)(a) of the Companies Act 2016 (“CA 2016”). The Petitioner contends that the Respondent is unable to pay its debts and that it is just and equitable for the company to be wound up. Background Facts 2. On 14 August 2024, the Petitioner obtained judgment against the Respondent in the Klang Magistrate’s Court (Suit No: BL-A72NCC- 1063-07/2024) for the sum of RM88,350.23, together with interest and costs. 3. Following the judgment, the Petitioner issued a Statutory Notice dated 28 February 2025 pursuant to section 466(1)(a) of the CA 2016, demanding payment of RM123,566.51 (as at date of demand) within 21 days. Despite due service, the Respondent failed, neglected, or refused to comply with the statutory demand. 4. The Respondent neither gave notice of intention to appear nor filed any affidavit in opposition to the petition. 5. The petition was heard on 18 August 2025, and the Respondent failed to attend the hearing despite proper service of the petition. Legal Principles 6. Under section 466(1)(a) of the CA 2016, a company shall be deemed unable to pay its debts if it fails to satisfy a creditor’s 10. demand for a sum exceeding RM50,000.00 within 21 days after service of a statutory notice. lt is now settled law that the question of a company’s inability to pay its debts must be considered in a commercial context. The test is not whether the company’s assets exceed its liabilities on paper, but whether it is able to meet current demands as they fall due. A company that neglects to pay its debts within the prescribed period is deemed commercially insolvent, regardless of whether it possesses assets which, if realised, might enable it to discharge its liabilities in full (see: System Communication Engineering Sdn Bhd v Zabidin Sdn Bhd [1999] 1 AMR 1187; WWTAI Finance Ltd v IES Energy Holdings Sdn Bhd [2016] MLJU 1591) Applying these principles to the facts before me, the Respondent's failure to settle the judgment debt despite being served with a valid statutory notice demonstrates its commercial insolvency. The Respondent's neglect to pay a clear and undisputed debt within the statutory period, coupled with its absence at the hearing and failure to file any affidavit in opposition, leaves no doubt that it is unable to meet its current financial obligations as they fall due. As such, | am satisfied that the Respondent is commercially insolvent and therefore unable to pay its debts within the meaning of sections 465(1)(e) and 466(1)(a) of the Companies Act 2076. Conclusion 11. in view of the foregoing reasons, | am satisfied that the Petitioner has established the statutory grounds for winding up. It is therefore just and equitable that the Respondent be wound up. 12. Accordingly, ! make the following orders: a) The Respondent, West Consortium Haulage Sdn. Bhd. (Company No. 201601009659 [1180587-P]), is hereby wound- up by the Court under the provisions of the Companies Act 2016: b) The Official Receiver is appointed as the Liquidator of the Respondent company; and c) The Petitioner is awarded costs of RM5,000.00 to be paid out of the assets jof the Respondent Dated: 12™ NOVEMBER 2025 \ \ RAIAROZELAS Ti RAJA T@RAN \ udicial Cdmmissioner, \ Muamalat and Insolvency Shah Ala COUNSEL Solicitor for the Appellant Solicitor for the Respondent Tetuan Leon & Partners A-9-1, 9"" Floor BBT One The Tower (South Tower) Lebuh Batu Nilam 1 Bandar Bukit Tinggi 41200 Klang, Selangor Email : info@leonpartners.my Phone No : 03-3322 3764 Tetuan Ho dan Rakan-Rakan Suite 9-18, 9" Floor Wisma Zelan No.1 Jalan Tasik Permaisuri 2 Bandar Tun Razak 56000 Cheras, Kuala Lumpur Email : horakan28@gmail.com Phone No : 03-9173 2150 1. lvan Ho