In two recent partial judgments delivered on 22nd July 2025 in the liquidation proceedings in the names Genesis Global Limited vs X (127/2022 ISB), the Civil Court (Commercial Section) reaffirmed a key principle under Maltese company law: there is no right of appeal from decrees issued in the context of liquidations unless expressly provided for by law.
The decrees arose from requests by two intervening parties seeking creditor recognition in the ongoing liquidation of a company regulated under the Companies Act (Chapter 386 of the Laws of Malta). Their applications to be included in the list of recognised creditors had previously been denied by the Court. The parties then sought special leave to appeal under Article 229(3) of the Code of Organisation and Civil Procedure (Chapter 12 of the Laws of Malta).
However, the Court ruled that no such leave could be granted in these circumstances. Referring to established jurisprudence, particularly MMGH Ltd vs Euro Imports Ltd, it noted that liquidation proceedings under Article 214 of the Companies Act are governed by a self-contained, special legal framework. The Companies Act only provides a right of appeal where this is expressly stated.
The Court emphasised that decisions taken under Article 239(4) of the Companies Act, such as whether to recognise a claim in the liquidation, are procedural determinations, not definitive judgments concluding the matter, and therefore not appealable unless the law specifically permits it. The applicants’ argument that their claims were supported by EU instruments or foreign legal principles was dismissed as irrelevant for the purpose of establishing a right of appeal under Maltese law.
Importantly, the Court acknowledged that while creditor-related issues in liquidations can involve complex or novel points, especially in a cross-border context, this does not of itself open a path to appeal where the statutory framework does not provide one.
This decision strengthens legal certainty in corporate winding-up procedures and aligns with a consistent line of Maltese case law. It also serves as a reminder that parties intervening in liquidation proceedings must understand the limits of procedural remedies available under the Companies Act.
The company in liquidation was represented by Dr Jonathan Abela Fiorentino and Dr Kristen Camilleri of Mamo TCV Advocates.
This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr. Jonathan Abela Fiorentino or Dr Michael Psaila.