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Writ Tuntutan: Landlord claims rental due. Can landlord file bankruptcy against tenant?

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asked on Jan 31, 2020 at 20:38
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edited on Aug 2, 2020 at 17:07
 
I received a "Writ dan Penyataan Tuntutan" before Chinese New Year regarding a breach of rental agreement with my landlord. They have taken all our assets within the property & did an auction of them. Now they are claiming the remaining rental and other misc charges as well which amounted to more than RM50k.

Been trying to negotiate with my landlord regarding the payment: I requested a reduced amount and also installment plan as my financial situation has been bad since last year hence the breach of contract.

Their lawyer said if the landlord rejects my proposal, I will have to enter an appearance by 6 February 2020. The case is in Penang while I am in Kuala Lumpur.

My question is - should I get a lawyer to represent me? If the landlord rejects my proposal, and go to court, will they be filing bankruptcy against me or just claiming the sums owed?

It's not that I don't intend to pay, I just need sometime to raise funds to pay.
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answered on Jan 31, 2020 at 22:44
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edited Aug 2, 2020 at 18:00
 
Are they suing you or your company?
If more than RM50k, you can be made a bankrupt.
Post image of the writ and the statement of claims here for checking.
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answered on Feb 1, 2020 at 08:50
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edited Aug 2, 2020 at 18:04
 
The landlord is suing the sole proprietor, which is also me. After negotiation, the landlord says minimum amount to repay is RM65k and the first payment must be made by 1 February while the first installment on 15 February. On January 23, I sent my proposal for change of payment date to 23 February but only yesterday did the lawyer reply saying that they’ll convey my message to the landlord.


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answered on Feb 1, 2020 at 09:01
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edited Aug 2, 2020 at 17:59
 
The case is in Penang while I am in Kuala Lumpur.
Why are you in Kuala Lumpur?

Why the landlord still want to charge you rental until July 2020?

Where is the Writ Summons?
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answered on Feb 1, 2020 at 09:08
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edited Aug 2, 2020 at 18:18
 
I am a native of Kuala Lumpur. I decided to open a branch shop in Georgetown in 2018 but in 2019, business literally crashed together with all my funds and now am trying to pick up the pieces. Also at the moment, I am in the midst of applying a loan with bank. We defaulted rental payments since December 2019 and was suppose to pay after we got the Letter of Demand but was screwed over by a family member at the last minute so alas I couldn't pay as demanded. Landlord decided to evict and did an auction of our assets and stocks but surprisingly they sold it at a very low price.

In between those, we were in a mess of downsizing, closing our office, moving the main shop so after the dust was settled, it triggered me to call the lawyer because it had been so quite. So, when I called in December, they already sent me a claim for the balance etc in November but I never received it, so she sent an email copy which was way after the date of the claim letter. I tried negotiating and managed to reduce the amount and now trying to negotiate on the payment date but the landlord is not withholding legal action.
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answered on Feb 1, 2020 at 09:09
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edited Aug 2, 2020 at 17:08
 
They are charging rental based on the tenancy agreement.
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answered on Feb 1, 2020 at 09:17
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edited Aug 2, 2020 at 17:08
 


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answered on Feb 1, 2020 at 16:09
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edited Aug 2, 2020 at 17:59
 
I think you need to file a Memorandum of Appearance at the Magistrates Court as soon as possible if you don't want to become a bankrupt. Post draft here for checking. Don't wait until 6 February.

How many partners in the business?
When did the business close down?

Show us the clause in the agreement that says you need to pay rental until July 2020.
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answered on Feb 1, 2020 at 16:17
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edited Aug 2, 2020 at 17:09
 
I saw somewhere that a person can check the court date online? When I googled, I found e-filing, and it was stated that the court date is on the 3rd February, but I only got the notice on the 23rd January? Can I file a Memorandum of Appearance online? But the lawyer said, "Pending feedback from the landlord. If the landlord rejects then only present a Memorandum of Appearance." I am too confused right now.
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answered on Feb 1, 2020 at 16:19
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edited Aug 2, 2020 at 17:07
 
The business is registered under one name only and I didn't close it down, just downsized. Business is still running.
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answered on Feb 1, 2020 at 18:48
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edited Aug 2, 2020 at 16:58
 
Can I file the Memorandum of Appearance online?
Difficult as you need to pay about RM10 for the filing.
You can try file it at Kuala Lumpur magistrates court.

But the lawyer said, "Pending feedback from the landlord. If the landlord rejects then only present a Memorandum of Appearance."
You must be stupid if you listen his lawyer's advice.

Where is the draft?
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