The saga on winding up vs arbitration continues. Emily Ho and I analyse the game-changing Privy Council decision in Sian Participation Corp (In Liquidation) v. Halimeda International Ltd [2024] UKPC 16, and consider the position in Malaysia. Our article, "Salford Estates Test in Malaysia: The Final Blow?" is published in the Asian International Arbitration Journal, published in collaboration with the Singapore International Arbitration Centre. Key developments: • Higher threshold: "Genuine and substantial grounds" now required for disputed debts. • Rejection of Salford Estates' lower "prima facie dispute" test. • Malaysia's Court of Appeal reached same conclusion independently in Swissray Healthcare Co Ltd v Medical Services M Sdn Bhd [2024] 8 CLJ 21, fortuitously, two weeks prior to Sian. What this means: ✅ Clear debts → Direct winding up ⚖️ Disputed debts ('genuine and substantial grounds') → Arbitrate first 🎯 Result: Better balance between arbitration policy and efficient insolvency proceedings. For a more detailed analysis, have a read of our article (10-15 minutes read). Comments, feedback and thoughts all welcomed! #LCWP #Insolvency #Arbitration #ADR
Very informative
Practising Lawyer at A.J. Ariffin. Yeo & Harpal | Civil Litigation | Arbitration
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