EXPORT-IMPORT BANK OF MALAYSIA BERHAD 1. ) IMPIANA UBUD (LABUAN) CO LTD 2. ) IMPIANA SDN BHD

EXPORT-IMPORT BANK OF MALAYSIA BERHAD 1. ) IMPIANA UBUD (LABUAN) CO LTD 2. ) IMPIANA SDN BHD

The certificate of indebtedness (or a statement functioning as one) issued by the bank is final and conclusive in proving the quantum of indebtedness in the absence of fraud or manifest error on its face; this shifts the evidential burden to the defendants to disprove the amount, and the trial judge erred in declining to apply that principle.

Citation
WA-22NCC-57-01/2022 (Mahkamah Tinggi)
Parties
Guarantors/respondents in Original Suit: Appellants; Plaintiff/appellant Below: Respondent (Bank)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 June 2024
Case Number
WA-22NCC-57-01/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal Concerning Bank Guarantee and Debt Recovery / Court of Appeal Judgment
Outcome
Appeal allowed; trial judge's decision set aside for failing to apply the conclusive effect of the certificate of indebtedness
Legal Topics
Certificate of Indebtedness, Conclusive Evidence Clause, Burden of Proof, Manifest Error, Guarantee Liability
Source Language
Malay/English
Banking Law Contract Law Civil Procedure Evidence Law Certificate of Indebtedness Conclusive Evidence Clause Burden of Proof Manifest Error +1 more

Case Brief

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Parties

Appellants

Guarantors/respondents in Original Suit

Respondent (Bank)

Plaintiff/appellant Below

Procedural Posture

Civil Appeal Concerning Bank Guarantee and Debt Recovery / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a certificate of indebtedness is final and conclusive evidence of the amount due
  2. 2 Whether the issuing party must further prove quantum despite a conclusive evidence clause
  3. 3 Whether manifest error or fraud was shown on the face of the certificate

Ratio Decidendi

The certificate of indebtedness (or a statement functioning as one) issued by the bank is final and conclusive in proving the quantum of indebtedness in the absence of fraud or manifest error on its face; this shifts the evidential burden to the defendants to disprove the amount, and the trial judge erred in declining to apply that principle.

Court Disposition

Appeal allowed; trial judge's decision set aside for failing to apply the conclusive effect of the certificate of indebtedness

Orders

  • Trial judge's decision set aside
  • Certificate of indebtedness (or statement functioning as such) held final and conclusive absent fraud or manifest error