In its recent grounds of judgment dated 31 October 2018, the Federal Court in the Jan De Nul decision clarified the effect of an international arbitration and the applicability of certain provisions of the Arbitration Act 2005 (AA 2005). The Federal Court also overruled the decision in the Court of Appeal AJWA case. The dispute gave rise to two separate appeals, one in relation to section 42 of the AA 2005 and another relating to the setting aside under section 37 of the AA 2005. This decision only deals with the section 42 aspect.
At the end of August 2016, one of the world’s largest container shipping companies, Hanjin Shipping Co Ltd, filed for rehabilitation proceedings at the Korean Bankruptcy Court. The Korean Bankruptcy Court granted provisional orders to preserve Hanjin’s assets.
There was immediate chaos. Around the world, some of Hanjin’s vessels in ports were seized while other vessels were stranded out at sea for fear of being seized.
To aid the rehabilitation proceedings in South Korea, it has been reported that Hanjin will seek court protection from more than 40 countries to preserve Hanjin’s assets.
Against this backdrop, I set out the ongoing legal developments in such a cross-border insolvency scenario and how these developments may affect Malaysia.