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If a Judgment Debtor intends to oppose a Bankruptcy Notice, the correct procedure is to file an Affidavit on An Application to Set Aside Bankruptcy Notice (Afidavit Atas Permohonan Membatalkan Notis Kebankrapan) pursuant to Rule 93 of the Insolvency Rules 2017.

The affidavit has to be filed within 7 days from the date the Judgment Debtor was personally served the Bankruptcy Notice.

Failure to file this affidavit within the 7 days timeframe would result in:

(a) an act of bankruptcy being committed by the Judgment Debtor; and

(b) the Judgment Creditor having 6 months to file the Creditors Petition.

If a Judgment Debtor intends to oppose a Creditors Petition, the correct procedure is to file a Notice by Debtor of Intention to Oppose Petition (Notis Oleh Penghutang Mengenai Niat Untuk Membantah Petisyen) pursuant to Rule 116 of the Insolvency Rules 2017.

The filing of the notice would be sufficient to entitle a Judgment Debtor to oppose the Creditors Petition [see Dato’ Sri Teong Teck Leng v Jupiter Securities Sdn Bhd [2004] 1 MLJ 1 (CA), at paragraph 38].

The notice has to filed 3 days (at the latest) before the date fixed for the hearing of the Creditors Petition.

Failure to file this notice could result in a bankruptcy order being made against the Judgment Debtor in his/her absence.

An affidavit to support the notice was required under Rule 117 of the Bankruptcy Rules 1969 [see Development & Commercial Bank Bhd v Datuk Ong Kian Seng [1995] 2 MLJ 724 (FC), at held (2)], which is in pari materia to Rule 116 of the Insolvency Rules 2017.

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