Significance: In a rare split decision, the majority of the Court of Appeal (Sundaresh Menon CJ and Tay Yong Kwang JA; Woo Bih Li J dissenting) refused recognition of foreign bankruptcy order due to breach of natural justice.
The majority found that the evidence did not prove that:
(i) notices of the bankruptcy application in Indonesia were properly served on the appellants;
(ii) the appellants had actual knowledge of the bankruptcy proceedings but chose not to appear in them.
The appellants were thus deprived of the opportunity to challenge validity of service or liability under the guarantees and object to the making of the bankruptcy orders.
The Court left open the issue of the correctness of the legal principles on recognition of foreign bankruptcy orders: at .
Supreme Court case summary found here.
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