Judicial commissioner Quay Chew Soon made the decision during an online proceeding.

The court said domestic trade and consumer affairs minister Alexander Nanta Linggi did not act beyond his powers to enact the by-law, known as the Companies (Exemption) Order 2020. It was enacted on April 23, 2020 when the country was under MCO.

Before the order, companies which owed others money had a maximum of 21 days to settle their debts, failing which they would be liable to closure under Section 466 (1)(a) of the Companies Act 2016.

The construction firm, Wabina Construction & Engineering Sdn Bhd, had in May last year filed a judicial review against Nanta, the government, the Companies Commission of Malaysia (SSM) and Seal Properties (KL) Sdn Bhd.

It claimed that Nanta had acted unreasonably and in excess of his authority by changing substantive laws in the Companies Act without going through Parliament.

The company won a RM7 million suit against Seal Properties on Feb 24, 2020 through an adjudication process.

But following Nanta’s order, it was unable to collect its dues in 21 days or cause Seal Properties to be declared insolvent or bankrupt.

Lawyers Ong Yu Shin and Lim Wooi Ying appeared for Wabina Construction & Engineering, while senior federal counsel Azizan Md Arshad, Ahmad Hanir Hambaly @ Arwi and Ng Wee Li represented Nanta and the government.

Lawyers Noor Hisham Ismail and Kumarappan Ramasamy appeared for SSM and Seal Properties, respectively. Lee Guan Tong held a watching brief for the Malaysian Bar.