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It was about three years ago that the Federal Court in the case of CIMB Bank Bhd v Sivadevi Sivalingam [2020] 2 CLJ 151 (“Sivadevi”) had held, by a majority, that the limitation period as enunciated in s.21(1) of the Limitation Act 1953 (“LA”) does not apply to charge actions brought by chargees to dispose of/realise charged properties by way of an Order for Sale. One of the main reasons on which the Federal Court’s decision in Sivadevi is based is that an Order for Sale is not an “action” within the meaning of s.21(1) of the LA.

The proposed amendments to the Insolvency Act 1967 (“the Act”) aims to provide for a more effective administration of the estate of bankrupts in Malaysia and to discharge bankrupts within a shorter period of time for the welfare of bankrupt individuals and to enable better contribution to the nation’s economic development.

There are often disputes in respect of whether public holidays and weekly holidays should be included or excluded in the computation of the 7-day period after service of a bankruptcy notice to determine the date on which an Act of Bankruptcy has been committed. The conflict stems from the reliance on different legislation in the method of computation of the 7-day period in s 3(1)(i) of the Insolvency Act 1967.

With the growing advent of commercial transactions, provisions in Loan Agreements with respect to default interest rates play a significant role, especially if one starts to default in his/her repayment scheme.

The amendments to the Insolvency Act 1967 (“the Act”) which were passed earlier this year come into effect today, 6 October 2023 (“the Amendments”).