The Insolvency Department wants to institute committal proceedings against Vinod Balachandra Sekhar - listed two years ago as the country’s 16th richest man in 2008 - for violating two High Court orders.

The orders were made by the court after Sekhar, 42, Petra Group chief executive officer, was declared a bankrupt following action instituted by Orix Credit (M) Sdn Bhd in 2005.

Sekhar was allegedly declared an undischarged bankrupt with total liability owed to nine creditors in excess of RM12.377 million.

NONE He was supposed to appear at the High Court today to explain his alleged violations of the orders but could not do so as he was not well, said his counsel S Veerapan.

Following this, senior federal counsel Ahmad Muttaqin Rabbani Abdullah for the Insolvency Department applied for another hearing set for Nov 26.

According to an affidavit by the department's investigator, Che Norlia Che Aziz, a committal order was made against Sekhar ( above ) following the application made by Orix, formerly known as UOL Credit (M) Sdn Bhd.

Che Norlia states in her affidavit that Sekhar, although a bankrupt, still held directorships in 22 companies without the permission of the department's director-general.

The companies included Petra Management Sdn Bhd, Petra Equities Sdn Bhd, Dialog Interaktif Sdn Bhd, Deprotin Sdn Bhd and De Link Recycle Sdn Bhd.

Others included STI Corporation Sdn Bhd, Petra Asia Holdings Sdn Bhd, Sekhar Integrated Sdn Bhd and BC Sekhar Research Laboratories.

Left country without permission

In another affidavit, Che Norlia states that a letter was sent to the Immigration Department on Aug 1, 2005, to bar Sekhar from leaving the country. Checks revealed that Sekhar had not made any application to the Bankruptcy Division or her department to leave the country.

On checking with the Immigration Department, it was found that Sekhar had left the country without any authorisation.

Following this, Che Norlia stated that Sekhar had violated the Bankruptcy Act for leaving the country without authorisation and could be punished under section 38(2) of the Bankruptcy Act 1967.

A person who violates 38 (1)(c) of the Act can be deemed guilty of contempt and shall be punished accordingly on application by the director-general of the Insolvency Department.

Che Norlia then applied the court to commit Sekhar to jail for violating that section. The court will deliver its ruling also on Nov 26.

Forbes magazine had in 2008 declared Sekhar the 16th richest man in Malaysia with a net asset value of US$320 million.

He was in the spotlight a few years ago when he invited Hollywood mega-star Mel Gibson to visit Malaysia.