Company gets leave to challenge govt's move in allowing deferred payment

The High Court here today allowed Wabina Constructions Engineering Sdn Bhd (Wabina) to have the full merits of its application over a federal gazette allowing companies to repay their debts in six months instead of 21 days during the Movement Control Order (MCO) period which was implemented to curb the spread of COVID-19 in the country.

Judge Datuk Rosilah Yop granted the leave application by the company, which had sought a review of the ministerial order dated April 23, after finding that the company has a prima facie case to challenge the by-law.

Rosilah granted the order to the company after senior federal counsel Rahazlan Affandi Abdul Rahim did not object to the leave application.

In its application, Wabina claimed that the Companies (Exemption) Order 2020, gazetted on April 23 during the second month of the MCO, was gazetted without going through the Dewan Rakyat for debate, which rendered it inconsistent with the Companies Act.

Its lawyer, Ong Yu Shin, also applied to transfer the case to the Federal Court for deliberation on whether such an order was constitutional.

Rosilah told Ong to make a formal request, pending which she would deliberate on submissions from both sides.

July 14 was set for case management.

The company filed the challenge in May, where it named the Malaysian Government, Domestic Trade and Consumer Affairs Minister Datuk Alexander Nanta Linggi and the Companies Commission of Malaysia as respondents.

-- BERNAMA