AMBANK(M) BERHAD 1. ) PRECIOUS CONCRETE SDN BHD 2. ) C&L MINERALS SDN BHD 3. ) LAW THIEN LOY 4. ) CHUAH CHONG EE 5. ) CHOO KHEN LON

AMBANK(M) BERHAD 1. ) PRECIOUS CONCRETE SDN BHD 2. ) C&L MINERALS SDN BHD 3. ) LAW THIEN LOY 4. ) CHUAH CHONG EE 5. ) CHOO KHEN LON

The court held that the Plaintiff proved a prima facie case and the Defendants failed to demonstrate any bona fide defence or triable issue; the continuing Guarantee and Indemnity bound the 2nd to 5th Defendants notwithstanding resignation or rescheduling; the Certificate of Indebtedness was unchallenged and therefore conclusive absent manifest error; summary judgment entered for Plaintiff against 2nd to 5th Defendants for the specified sums; claim against 1st Defendant struck out due to winding up with liberty to file afresh.

Citation
WA-22NCC-301-05/2024 (Mahkamah Tinggi)
Parties
Plaintiff: AMBANK (M) BERHAD; 1st Defendant: PRECIOUS CONCRETE SDN BHD; 2nd Defendant: C&L MINERALS SDN BHD; 3rd Defendant: LAW THIEN LOY; 4th Defendant: CHUAH CHONG EE; 5th Defendant: CHOO KHEN LON
Court
High Court
Jurisdiction
Malaysia
Judgment Date
19 November 2024
Case Number
WA-22NCC-301-05/2024 (Mahkamah Tinggi)
Procedural Posture
Commercial Division Summary Judgment Application / Judgment (summary Judgment)
Outcome
Judgment entered for Plaintiff against 2nd to 5th Defendants; claim against 1st Defendant struck out with liberty to file afresh due to company winding up
Legal Topics
Summary Judgment, Certificate of Indebtedness, Continuing Guarantee, Rescheduling/variation of Debt, Default and Termination
Source Language
Malay/English
Contract Law Banking Law Civil Procedure Company Law Guarantee and Indemnity Summary Judgment Certificate of Indebtedness Continuing Guarantee +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 17 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

AMBANK (M) BERHAD

Plaintiff

PRECIOUS CONCRETE SDN BHD

1st Defendant

C&L MINERALS SDN BHD

2nd Defendant

LAW THIEN LOY

3rd Defendant

CHUAH CHONG EE

4th Defendant

CHOO KHEN LON

5th Defendant

Procedural Posture

Commercial Division Summary Judgment Application / Judgment (summary Judgment)

Legal Issues

  1. 1 Whether defendants have bona fide defences or triable issues to defeat Order 14 summary judgment
  2. 2 Whether guarantors remain liable despite resignation of director-guarantor
  3. 3 Whether a rescheduling/variation of payment terms discharged guarantors under Section 86 Contracts Act 1950

Ratio Decidendi

The court held that the Plaintiff proved a prima facie case and the Defendants failed to demonstrate any bona fide defence or triable issue; the continuing Guarantee and Indemnity bound the 2nd to 5th Defendants notwithstanding resignation or rescheduling; the Certificate of Indebtedness was unchallenged and therefore conclusive absent manifest error; summary judgment entered for Plaintiff against 2nd to 5th Defendants for the specified sums; claim against 1st Defendant struck out due to winding up with liberty to file afresh.

Court Disposition

Judgment entered for Plaintiff against 2nd to 5th Defendants; claim against 1st Defendant struck out with liberty to file afresh due to company winding up

Orders

  • Overdraft Facility: RM 425,243.38 as at 30-04-2024 together with default interest at 3.50% per annum (based on BLR) from 01-05-2024 until full settlement
  • Multi Trade (Trust Receipt) Facility: RM 3,088,933.23 as at 30-04-2024 together with interest (calculated on principal RM 2,776,606.62) at 2.50% per annum (based on BLR) and penalty interest at 1.00% per annum from 01-05-2024 until full settlement