1. ) CHEN YI JIN 2. ) SEE WEE SIAH 3. ) WANG FUCHENG 1. ) NEO SIN SING 2. ) TEE NAI POH PIHAK TERKILAN 1. ) POWER MINING SDN BHD 2. ) CHEW SONG HENG 3. ) HO CHAK HUNG

1. ) CHEN YI JIN 2. ) SEE WEE SIAH 3. ) WANG FUCHENG 1. ) NEO SIN SING 2. ) TEE NAI POH PIHAK TERKILAN 1. ) POWER MINING SDN BHD 2. ) CHEW SONG HENG 3. ) HO CHAK HUNG

The loan agreement created a joint and several undertaking by the guarantors enforceable up to the actual sum paid (RM3,000,000); the plaintiffs were entitled to judgment against the 1st and 2nd defendants jointly and severally for the plaintiffs' respective shares with interest; the fact that certain guarantors were not named in the main suit did not extinguish their liabilities because the obligation was joint and several and the claim was a liquidated demand; counter-claims against D4 and D5 were allowed to the extent of RM750,000 each (and related indemnities and costs) while the counter-claim against D6 was dismissed.

Citation
JA-22NCvC-114-09/2020 (Mahkamah Tinggi)
Parties
Plaintiff; Counter Defendant: Chen Yi Jin (formerly Tan Aik Kim); Plaintiff; Counter Defendant: See Wee Siah; Plaintiff; Counter Defendant: Wang Fucheng; Defendant; Counter Claimant: Neo Sin Sing; Defendant; Counter Claimant: Tee Nai Poh; Counter Defendant: Tan Aik Kim; Counter Defendant: Chew Song Heng; Counter Defendant: Ho Chak Hung; Counter Defendant: Power Mining Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 March 2025
Case Number
JA-22NCvC-114-09/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Suit Breach of Loan Agreement and Enforcement of Guarantees / Judgment (grounds of Judgment Delivered)
Outcome
Judgment for Plaintiffs in part; Plaintiffs awarded specified sums against 1st and 2nd Defendants jointly and severally; counter-claim allowed in part against 4th and 5th Defendants and dismissed against 6th Defendant.
Legal Topics
Loan Agreement, Guarantee, Joint and Several Liability, Counter Claim, Res Judicata / Merger, Liquidated Demand, Consideration
Source Language
Malay/English
Contract Company Law Civil Procedure Guarantee and Suretyship Loan Agreement Guarantee Joint and Several Liability Counter Claim +3 more

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Parties

Chen Yi Jin (formerly Tan Aik Kim)

Plaintiff; Counter Defendant

See Wee Siah

Plaintiff; Counter Defendant

Wang Fucheng

Plaintiff; Counter Defendant

Neo Sin Sing

Defendant; Counter Claimant

Tee Nai Poh

Defendant; Counter Claimant

Tan Aik Kim

Counter Defendant

Chew Song Heng

Counter Defendant

Ho Chak Hung

Counter Defendant

Power Mining Sdn Bhd

Counter Defendant

Procedural Posture

Civil Suit Breach of Loan Agreement and Enforcement of Guarantees / Judgment (grounds of Judgment Delivered)

Legal Issues

  1. 1 Whether the guarantors are jointly and severally liable to repay the loan despite some guarantors not being named in the main suit
  2. 2 Whether the defendant who did not contribute to the loan remains liable as guarantor after termination as director
  3. 3 Whether prior judgment in related suit (suit '150') bars the present claim (res judicata/merger)

Ratio Decidendi

The loan agreement created a joint and several undertaking by the guarantors enforceable up to the actual sum paid (RM3,000,000); the plaintiffs were entitled to judgment against the 1st and 2nd defendants jointly and severally for the plaintiffs' respective shares with interest; the fact that certain guarantors were not named in the main suit did not extinguish their liabilities because the obligation was joint and several and the claim was a liquidated demand; counter-claims against D4 and D5 were allowed to the extent of RM750,000 each (and related indemnities and costs) while the counter-claim against D6 was dismissed.

Court Disposition

Judgment for Plaintiffs in part; Plaintiffs awarded specified sums against 1st and 2nd Defendants jointly and severally; counter-claim allowed in part against 4th and 5th Defendants and dismissed against 6th Defendant.

Orders

  • 1st and 2nd Defendants jointly and severally to pay Plaintiffs: 1st Plaintiff RM1,031,250.00, 2nd Plaintiff RM1,031,250.00, 3rd Plaintiff RM937,500.00 with interest at 8% from 22.1.2020 to date of judgment 28.3.2025 and interest at 5% from date of judgment until realization.
  • Declaration that 4th and 5th Defendants (in the counter-claim) are liable to pay Plaintiffs (in the counter-claim) RM750,000.00 under the Loan Agreement.