CKOO Collections Sdn Bhd AR Asset Management (M) Sdn Bhd

CKOO Collections Sdn Bhd AR Asset Management (M) Sdn Bhd

DOA-2 effected an equitable absolute assignment of the Book Debts (lack of statutory notice only prevented perfecting legal assignment); the CA was a binding contract part-performed by the parties; although a loan-at-interest presumption arose, the Plaintiff rebutted it on the evidence and was not carrying on a moneylending business; the Defendant breached the CA, misapplied collections and is a constructive trustee of the Book Debts and their proceeds; Plaintiff entitled to declarations, damages (RM15,314,388.99 subject to set-off), injunctions, account and costs.

Citation
WA-22NCC-217-04/2025 (Mahkamah Tinggi)
Parties
Plaintiff (original Action); Defendant (counterclaim): CKOO COLLECTIONS SDN BHD (formerly SCB COLLECTIONS SDN BHD); Defendant (original Action); Plaintiff (counterclaim): AR ASSET MANAGEMENT (M) SDN BHD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
13 March 2026
Case Number
WA-22NCC-217-04/2025 (Mahkamah Tinggi)
Procedural Posture
Civil Commercial (contract and Trust) / Final Judgment (grounds of Judgment)
Outcome
Judgment for Plaintiff; Counterclaim dismissed
Legal Topics
Breach of Contract, Constructive Trust, Validity of Assignment, Unlicensed Moneylending (moneylenders Act 1951), Injunctions, Damages and Accounts
Source Language
Malay/English
Contract Trusts and Equitable Remedies Moneylenders Law Property (assignment of Debts) Civil Procedure Breach of Contract Constructive Trust Validity of Assignment +3 more

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Parties

CKOO COLLECTIONS SDN BHD (formerly SCB COLLECTIONS SDN BHD)

Plaintiff (original Action); Defendant (counterclaim)

AR ASSET MANAGEMENT (M) SDN BHD

Defendant (original Action); Plaintiff (counterclaim)

Procedural Posture

Civil Commercial (contract and Trust) / Final Judgment (grounds of Judgment)

Legal Issues

  1. 1 Whether DOA-2 validly transferred rights in Book Debts (absolute assignment vs charge)
  2. 2 Whether the Collaboration Agreement (CA) is a binding and enforceable contract
  3. 3 Whether the CA/transaction constituted unlicensed moneylending under the Moneylenders Act 1951

Ratio Decidendi

DOA-2 effected an equitable absolute assignment of the Book Debts (lack of statutory notice only prevented perfecting legal assignment); the CA was a binding contract part-performed by the parties; although a loan-at-interest presumption arose, the Plaintiff rebutted it on the evidence and was not carrying on a moneylending business; the Defendant breached the CA, misapplied collections and is a constructive trustee of the Book Debts and their proceeds; Plaintiff entitled to declarations, damages (RM15,314,388.99 subject to set-off), injunctions, account and costs.

Court Disposition

Judgment for Plaintiff; Counterclaim dismissed

Orders

  • Declaration that the Defendant has breached the Collaboration Agreement dated 18.4.2024
  • Order that the Defendant pay the Plaintiff MYR 15314388.99 representing the monthly payments due under the CA until 4-4-2025, less amounts recovered