[2017] 6 CLJ 61
The liquidator was obliged to inform the court of his difficulty and take directions on whether to utilise the payments of advance by the petitioner and enter into a private treaty with the creditor to sell the land on the basis that this may be the only option to satisfy s. 236(1)(b) of the Companies Act 1965 (‘the Act’) in order to pay the creditor in full. Section 236(1)(b) requires the liquidator, subject to s. 292, to pay any class of creditors in full. The liquidator has to get the required amount of money to secure the land so that it can be realised to settle the creditor, whose interest would rank in priority over the contributories.  The respondent had no other assets. Without accepting the advance and conditions of the petitioner, the liquidator would not be able to secure the land in favour of the respondent. In the circumstances, the liquidator had no alternative other than to seek directions pursuant to s. 237(3) of the Act as a difficulty has arisen in the course of his administration of the winding up of the respondent. In the circumstances, the court directed that in the event extension of time sought on the settlement of the purchase price and premium in accordance with the consent judgment is refused by the State Authority, the liquidator, in his capacity as liquidator of the respondent, is at liberty to take appropriate steps to secure and sell the land. Datuk Ganesan and Subashini acted for the Liquidator.