Section 415. Power to deal with charged property, etc.

(1) The judicial manager of a company may dispose of or otherwise exercise his powers in relation to any property of the company which is subject to a security to which, as created, was a floating charge.

(2) Where, on application by the judicial manager of a company, the Court is satisfied that the disposal, with or without other assets—

(a) of any property of the company which is subject to a security other than a floating charge; or

(b) of any goods under a hire purchase agreement, chattels leasing agreement or retention of title agreement,

would be likely to promote one or more of the purposes specified in the judicial management order, the Court may, by order, authorize the judicial manager to dispose of the property as if it were not subject to the security or to dispose of the goods as if all rights of the owner under the hire purchase agreement were vested in the company.

(3) The judicial manager shall send a copy of an order made under subsection (2) to the Registrar within fourteen days from the making of the order.

(4) The judicial manager making an application to the Court to dispose of property subject to a security under subsection (2) shall give notice of not less than seven days before the making of the application, to the security holder or to the owner of the goods which are subject to any of the agreements mentioned in that subsection and the security holder or the owner, as the case may be, may oppose the disposal of the property.

(5) Where any property is disposed of under subsection (1), the security holder shall have the same priority in respect of any property of the company disposed of as he would have had in respect of the property that is subject to the security.

(6) It shall be a condition of an order made under subsection (2) that the net proceeds of the disposal shall be applied towards discharging the sums secured by the security or payable under the hire purchase agreement, chattels leasing agreements or retention of title agreement and where the net proceeds of the disposal are less than the sums secured by the security or payable under any of those agreements, the security holder or the owner of the goods, as the case may be, may prove on a winding up for any balance due to him.

(7) Where a condition imposed under subsection (6) relates to two or more securities, that condition shall require the net proceeds of the disposal to be applied towards discharging the sums secured by those securities in the order of priorities of such securities.

(8) A judicial manager who, without reasonable excuse, contravenes subsection (6) or (7) commits an offence and in the case of a continuing offence, to a further fine not exceeding five hundred ringgit for each day the offence continues after conviction.

(9) Nothing in this section shall be regarded as prejudicing an application to the Court under section 425.