Notes of Meeting between Civil Court Liaison Committee and Jabatan Insolvensi Malaysia on 10.07.2009

Circular No: KLBC 57/09
Courtesy Call & Meeting between the Civil Court Liaison Committee and the Director General of Insolvency Malaysia on 10.07.2009 at 3.30pm at the Insolvency Office, Putrajaya.

Attended by:
KL Bar Civil Court Liaison Committee:
Mr Annou A. Xavier
Mr Darshendev Singh
Ms Selva Rani Thiyagarajan
Pn Norhayati Rahmad – secretariat

Bar Council
Mr Tan Kim Soon
Ms Sally Chee Lai Yan

Selangor Bar Committee
Ms Tejindarpal Kaur

Jabatan Insolvensi Malaysia- JIM
Datuk Abdul Karim bin Abdul Jalil – Ketua Pengarah Insolvensi Malaysia
Puan Haini binti Hassan – Timbalan Ketua Pengarah Insolvensi Malaysia
Dato’ Asmabi binti Mohamad – Pakar Perunding
Puan Lailawati binti Husain – Pengarah Insolvensi, Bahagian Pendakwaan
Puan Faradziah binti Kasah – Pengarah Insolvensi, Bahagian Penyiasatan dan Penguatkuasaan
Y.M. Puan Raja Norlidah binti Y.M. Raja Ismail – Pengarah, Bahagian Perakaunan
Puan Lim Kui Lee – Pengarah Insolvensi, Bahagian Kebankrapan
Encik Abdul Halim bin Hamzah – Pengarah, Bahagian Khidmat Pengurusan
Puan Rohatul Akmar binti Abdullah – Pengarah Insolvensi Negeri, Cawangan WilayahPersekutuan
Puan Norliza binti Zulkifli – Pengarah Insolvensi Negeri, Cawangan Selangor
Puan Fajrul Shihar binti Abu Samah – Peguam Kanan Jabatan, Bahagian Perundangan
Puan Che Roslina bt Jusoh – Pengarah, Bahagian Teknologi Maklumat
Puan Mazliana binti Mazlan – Penolong Pengarah Insolvensi, Bahagian Likuidasi
Puan Shamsiah binti Chee Ros – Pegawai Komunikasi Korporat

Dato’ Abdul Karim called the meeting to order on 3.35pm and welcomed representatives from the Kuala Lumpur Bar Committee (CCLC), Bar Council and the Selangor Bar Committee. He then introduced the Insolvency Malaysia officers from and their departments. He also informed meeting that he recently took over the DGI in April 2009, also referred the office as JIM (Jabatan
Insolvensi Malaysia).

Dato’ also informed/invite members of the Bar to actively take part in a Consultative Forum in which is currently being organised/formed by the JIM. The Forum would include all parties involved in Bankruptcy matters i.e. Banks, Liquidators, intermediaries, Land Offices, members of the Bar and other relevant parties. Dato’ Karim also wanted to improve relations between JIM and members of the Bar and suggested meetings be held regularly betweenboth i.e. quarterly. Annou thanked Dato’ for welcome and introduce members from the KL Bar’s CLC as well as representatives from the Bar Council and Selangor Bar.

Issues raised by KL Bar:

1. Request for cost of RM500 for withdrawal of Creditors/Winding up Petitions.
Mr Annou raised the fact that JIM is requesting RM500.00 just to attend Court and withdraw Winding Up petitions or Creditors Petitions. In all cases, only one (1) JIM officer will attend Court for a few Petitions, but insist of RM500.00 costs for the
withdrawal of one (1) Petition. Mr Annou then raised that the RM500.00 costs just to withdraw petition is exhorbitant given the fact that minimal or no work work is done by JIM.

Dato’ Karim proposed that the RM500 or whatever lower cost than RM500.00 incurred for the winding up petitions to be set off from the RM3000 deposit. Directions on the matter will be circulated throughout Malaysia so that it would be more clear. Dato’ Karim also agreed to give itemized costing, e. travelling, photocopying, research costs – in which members of the KL Bar could use as a reference.

2. Time Frame for refund of deposits
Dato’ informed the meeting that the JIM now are being audited and is under the KPI scheme/status. All IO offices are slowly being improved effective from July 2008. Refund should be done within 14 days (provided all documents are in order).

Mr Tan (Bar Council) highlighted that Johor Bar has been trying to set a date for a meeting with the state Insolvency Office since September 2008 without any success.

Dato’ informed the meeting that he is calling all State Directors of Insolvency for a meeting on 26.07.2009. All States will follow directions and will be monitored from his office.

3. Secured Properties
Ms Tejindarpal (Selangor Bar) informed that Banks are reluctant to realize bankrupts property charged to the Banks by way of private treaty because of the understanding that JIM’s approval will take to 1 to 1 ½ years. Banks/financial institutions are also not willing
to surrender their title and comply with the conditions given by JIM and rather auction the bankrupt’s property. They also afraid that they will loose their right as a secured creditor. In some cases the Bank receives 10% from a proposed purchase and then refuses to go on with the sale transaction upon discovering that the customer has been declared bankrupt. As the trustee in bankruptcy the DGI should look into the ways to resolve these problems especially in cases where the bankrupt is trying to save his family property or dwelling house by requesting the sale to be done by private treaty to the next kin or family of the bankrupt or to the person known to the bankrupt. So long as the Bank can recover its fair market value, the DGI should assist and allow the sale as soon as possible. Dato’ mentioned that there’re a lot of misconception and miscommunications received by the secured creditors (Banks).

Ms Lim (JIM) informed that there is a special committee formed to evaluate this matter – JUJA (Jawatankuasa Unit Jualan Aset). The approval for the sale (provided all documents are in order) would be 3 months.

Ms Tejindarpal agreed that there are a lot of misconception and miscommunications received by the secured creditors (Banks) and that branches of JIM should be given the right guidelines when dealing Bank/financial institutions.

Annou A. Xavier
Unit Head of Bankruptcy Division
Civil Court Liaison Committee