KOTA KINABALU: Parti Harapan Rakyat Sabah founding president Lajim Ukin did not lose his position in the party despite having been declared a bankrupt recently, claims his deputy Maijol Mahap.
In explaining the latest development over the controversy surrounding the Sabah-based opposition party’s president, Maijol said the bankruptcy did not take effect as it was annulled immediately.
In a statement on Saturday, Maijol said though Lajim had lost his presidency as per Section 9A of the Society Act 1966 after being declared bankrupt on Sept 14, the order against him was annulled on Sept 20, 2017 under Section 105 of the Bankruptcy Act 1957, and this meant that the original order was void altogether.
“By virtue of Section 105 of the Bankruptcy Act 1967, his bankruptcy was annulled, that is, he was released out from the bankruptcy order by way of an annulment.
“According to decided cases in the court of law both in Malaysia and England, the meaning of ‘annulment’ of a bankruptcy order is to wipe out the bankruptcy altogether, and put the person concerned in the same position as if there had been no bankruptcy order at all.
“This means the effect of annulment is retrospective,” Maijol said.
He added that this was different from being discharged from bankruptcy under section 33 of the Bankruptcy Act 1967.
Under section 33, he said a bankrupt can apply to the court to be discharged from bankruptcy but the effect of the discharge is not the same as that of the annulment under section 105.
This is because the discharge under section 33 is not capable of wiping out the bankruptcy altogether and putting him in the same position as if there had been no order.
In other words, the discharge under section 33 has no retrospective effect.
“In view of the aforesaid, our stance is that since the adjudication order against Lajim has been annulled on Sep 21 under section 105, he remains as party president despite the provision of section 9A of the Society Act 1966.
“Nevertheless, we will move a special motion in the Beaufort divisional annual general meeting on Oct 1 and in the state annual general meeting on Oct 26 to state that for the avoidance of any doubt, the meetings thereby resolve that he shall remain and continue to be the Beaufort divisional head and party president, respectively, with the undivided support from all the delegates at the meetings,” Maijol said.