1. ) YONG KOK YEAP 2. ) FANG CHEE PENG URUSWAJAR CONCRETE SDN BHD

1. ) YONG KOK YEAP 2. ) FANG CHEE PENG URUSWAJAR CONCRETE SDN BHD

The appeal was dismissed because the original Continuing Guarantee & Indemnity, as produced and inspected, established the defendants as guarantors for MKP Builders; there was no admissible evidence that the guarantee was for Element Flash; the contract terms made the guarantors principal debtors and liable independently of proceedings against MKP Builders; the plaintiff's signed statement of indebtedness was conclusive as to the amount owed; accordingly the High Court upheld the Sessions Court decision and awarded costs.

Citation
BA-12B-35-04/2025 (Mahkamah Tinggi)
Parties
Appellant/defendant: Yong Kok Yeap; Appellant/defendant: Fang Chee Peng; Respondent/plaintiff: Uruswajar Concrete Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 January 2026
Case Number
BA-12B-35-04/2025 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court / Judgment on Appeal (after Full Trial)
Outcome
Appeal dismissed
Legal Topics
Guarantee and Indemnity, Continuing Guarantee, Principal Debtor Clause, Estoppel, Companies Act S471, Statement of Indebtedness/conclusive Certificate, Pleading Requirements
Source Language
Malay/English
Contract Company Law Civil Procedure Guarantee and Indemnity Continuing Guarantee Principal Debtor Clause Estoppel Companies Act S471 +2 more

Case Brief

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Parties

Yong Kok Yeap

Appellant/defendant

Fang Chee Peng

Appellant/defendant

Uruswajar Concrete Sdn Bhd

Respondent/plaintiff

Procedural Posture

Civil Appeal From Sessions Court / Judgment on Appeal (after Full Trial)

Legal Issues

  1. 1 Whether the Continuing Guarantee & Indemnity signed by the defendants bound them in respect of MKP Builders or another company (Element Flash)
  2. 2 Whether the plaintiff was required to sue MKP Builders first or obtain leave under s471 Companies Act 2016 before proceeding against the guarantors
  3. 3 Whether the Continuing Guarantee & Indemnity operated as a continuing guarantee making guarantors principal debtors and independent of the company's liability

Ratio Decidendi

The appeal was dismissed because the original Continuing Guarantee & Indemnity, as produced and inspected, established the defendants as guarantors for MKP Builders; there was no admissible evidence that the guarantee was for Element Flash; the contract terms made the guarantors principal debtors and liable independently of proceedings against MKP Builders; the plaintiff's signed statement of indebtedness was conclusive as to the amount owed; accordingly the High Court upheld the Sessions Court decision and awarded costs.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs fixed at RM 10,000.00