High Court winds up construction firm over RM8.27mil judgment debt

The Kuala Lumpur High Court has ordered the winding-up of construction company One-Builtwell Associates (M) Sdn Bhd due to an RM8.27 million judgment debt owed to Seremban Specialist Hospital Sdn Bhd. Judicial Commissioner Ku Hayati Ku Haron ruled that the company cannot rely on a pending appeal to halt the winding-up proceedings unless a stay of execution is granted.

The debt originated from a November 2022 Seremban High Court judgment requiring One-Builtwell to pay RM8,267,780, 5% annual interest, and RM30,000 in costs. The hospital filed for winding-up proceedings after the company failed to pay the debt after receiving a statutory demand. The court found One-Builtwell unable to provide credible evidence of its ability to settle the judgment, dismissing financial information dating back to 2020 as insufficient to prove present debt-paying capability.

The judge also rejected the company's argument that the statutory demand was defective due to not expressly stating a right to compound the debt, ordering the company to be wound up, appointing a private liquidator, and awarding RM7,000 in costs.