A three-member bench, chaired by Hamid Sultan Abu Backer, instead appointed the official receiver as liquidator of Shencourt Properties Sdn Bhd.
The bench also ordered Ricky Thong Yew Fook and Narendra Kumar Jasani, as co-liquidators, to deliver all files and money to the official receiver within 20 working days.
“If not complied with, the parties are at liberty to file contempt proceedings against the two,” said Hamid, who sat with judges Hanipah Farikullah and Rhodzariah Bujang.
Lawyer Alvin Tang, who represented Shencourt Sdn Bhd, said the ruling means such liquidators can now be removed from their office for failure to work together or protect their clients’ interests.
In finding Thong and Narendra to be in breach of an earlier court order appointing them to act jointly as liquidators, the appellate court ruled that there was sufficient evidence to support Shencourt’s claim that both have acted in an inadequate manner.
Among complaints raised by the appellant (Shencourt) were that Thong and Narendra had been unwilling to work with each other as joint liquidators. It claimed this resulted in losses to its subsidiary, Shencourt Properties Sdn Bhd.
The complaint included earlier applications by Thong and Narendra to remove each other as co-liquidators.
Hamid said as professionals, both were meticulously required to follow orders as well as directions of the court.
He said it may also lead to a suit for professional negligence against the liquidators to indemnify all losses and damages arising from their misconduct.
In 2011, the High Court had appointed both to handle the liquidation of Shencourt Properties.
However, before Narendra came on board, Thong had entered into an option agreement that allowed him to sell 18 pieces of land to JVC Connection Sdn Bhd at RM27 million.
Meanwhile, JVC sued Shencourt Properties for specific performance of the agreement.
Two years ago, Shencourt, the parent company of Shencourt Properties, attempted to remove the liquidators claiming they had sold the land way below the market price and were not properly defending the suit.
The High Court last year found no sufficient grounds to remove them but on appeal, the Court of Appeal reversed the decision.
Shencourt was also represented by Teo Ju-li. Harpal Singh Grewal, Collin Goonting, Terrance Kanagaratnam and Archana Nair represented the liquidators.