Unsecured creditors have no automatic right to intervene in judicial management, apex court rules

The Federal Court ruled that the High Court should apply a higher threshold when considering an unsecured creditor’s application to intervene in judicial management proceedings.PUTRAJAYA: Unsecured creditors have no automatic right to intervene in judicial management proceedings, the Federal Court has ruled.

The High Court must instead consider the facts and circumstances of each case when deciding whether to allow such intervention, said Federal Court judge Abu Bakar Jais, who chaired a three-member bench.

Justice Ahmad Terrirudin Salleh said the High Court should apply a higher threshold when considering an unsecured creditor’s application to intervene, adding that the creditor must satisfy the court that intervention is justified in the circumstances of the case.