What happens when the debt giving rise for the winding-up petition also falls under the arbitration clause?

It is now common to see arbitration clause in a commercial agreement governing cross-border relationships. Makes sense commercially. But in an insolvency scenario, what happens when the debt giving rise for the winding-up petition also falls under the arbitration clause?

Our Federal Court has recently deliberated on this issue in V Medical Services M Sdn Bhd v Swissray Asia Healthcare Co Ltd [2025] 2 MLJ 744. The Federal Court had to deliberate on the issue whether a Fortuna injunction ought to be granted in light of such arbitration clause.

The Federal Court, among others, took note of the approaches by various other jurisdictions. It concluded that insofar as Malaysia is concerned, arbitration clause per se will not defeat the presentation of a petition based on an undisputed debt.

It appears to me that our judiciary recognises the importance of arbitration in the world of international commerce but at the same time took note that arbitration clauses cannot be given carte blanche to prevent a bona fide winding-up petition from being filed. It is my view this decision by the Federal Court balances commercial practicality against potential abuse of court process.