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

Defendants failed to demonstrate any bona fide defence or manifest error in the Certificate of Indebtedness; the guarantees are continuing and enforceable despite resignation or rescheduling; therefore summary judgment is appropriate and the 2nd–5th Defendants are liable for the sums claimed; the claim against the 1st Defendant is 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 Banking Dispute (loan and Guarantees) / Summary Judgment / Grounds of Judgment
Outcome
Summary judgment entered for Plaintiff against the 2nd to 5th Defendants; claim against the 1st Defendant struck out with liberty to file afresh (company wound up).
Legal Topics
Summary Judgment, Certificate of Indebtedness, Continuing Guarantee, Variation of Contract, Termination of Facility, Default and Penalty Interest, Director Resignation Effect
Source Language
Malay/English
Contract Law Banking Law Guarantee and Indemnity Civil Procedure Summary Judgment Certificate of Indebtedness Continuing Guarantee Variation of Contract +3 more

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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 Banking Dispute (loan and Guarantees) / Summary Judgment / Grounds of Judgment

Legal Issues

  1. 1 Whether the 2nd to 5th defendants as guarantors are liable for sums owing by the 1st defendant under the facility agreements
  2. 2 Whether the Certificate of Indebtedness is conclusive and binding absent manifest error
  3. 3 Whether the 4th defendant's resignation as director or the rescheduling/variation of the facility discharges guarantor liability

Ratio Decidendi

Defendants failed to demonstrate any bona fide defence or manifest error in the Certificate of Indebtedness; the guarantees are continuing and enforceable despite resignation or rescheduling; therefore summary judgment is appropriate and the 2nd–5th Defendants are liable for the sums claimed; the claim against the 1st Defendant is struck out due to winding up with liberty to file afresh.

Court Disposition

Summary judgment entered for Plaintiff against the 2nd to 5th Defendants; claim against the 1st Defendant struck out with liberty to file afresh (company wound up).

Orders

  • Overdraft Facility account no. 8881045111674: 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 on outstanding from 01-05-2024 until full settlement