Malaysian Court of Appeal confirms flexibility of secured creditors to revalue security and withdraw unsecured claims in liquidation despite filing proof of debt

18 December 2024

Sabah Development Bank Berhad v TYL Land & Development Sdn Bhd (Civil Appeal No. W-02(A)-743-04/2022)

In Sabah Development Bank Berhad v TYL Land & Development Sdn Bhd, the Malaysia Court of Appeal allowed an appeal against the decision of the High Court and clarified the legal principles regarding treatment of secured creditors in liquidation proceedings, particularly when the secured creditor submits a proof of debt.

This article by our associate firm in Malaysia, Rahmat Lim & Partners, provides an overview of the court’s decision. It is available on their website.