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 Plaintiff proved entitlement to summary judgment: the Facility Agreement defaults, formal notices and a Certificate of Indebtedness were issued and unexplained by Defendants, the continuing guarantor clauses in the Guarantee and Indemnity bind the 2nd–5th Defendants despite resignation or rescheduling, and no manifest error in the certificate was shown; therefore summary judgment is entered against the 2nd–5th Defendants and the claim against the 1st Defendant is struck out (company wound up).

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 Suit – Summary Judgment Application Under Order 14 / Judgment (summary Judgment Granted)
Outcome
Summary judgment entered for Plaintiff against 2nd to 5th Defendants; claim against 1st Defendant struck out with liberty to file afresh (company wound up).
Legal Topics
Summary Judgment, Guarantee and Indemnity, Certificate of Indebtedness, Contract Variation (rescheduling), Continuing Guarantor Liability, Termination of Loan Facilities
Source Language
Malay/English
Banking and Finance Contract Law Civil Procedure Company Law Summary Judgment Guarantee and Indemnity Certificate of Indebtedness Contract Variation (rescheduling) +2 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 Suit – Summary Judgment Application Under Order 14 / Judgment (summary Judgment Granted)

Legal Issues

  1. 1 Whether the Plaintiff proved indebtedness and entitlement to summary judgment
  2. 2 Whether the Guarantee and Indemnity binds guarantors despite resignation or rescheduling
  3. 3 Whether the Certificate of Indebtedness is conclusive absent manifest error or fraud

Ratio Decidendi

The Plaintiff proved entitlement to summary judgment: the Facility Agreement defaults, formal notices and a Certificate of Indebtedness were issued and unexplained by Defendants, the continuing guarantor clauses in the Guarantee and Indemnity bind the 2nd–5th Defendants despite resignation or rescheduling, and no manifest error in the certificate was shown; therefore summary judgment is entered against the 2nd–5th Defendants and the claim against the 1st Defendant is struck out (company wound up).

Court Disposition

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

Orders

  • Overdraft Facility: RM 425243.38 as at 30-04-2024 under account no. 8881045111674 together with default interest at 3.50% per annum (BLR based) from 01-05-2024 until full settlement
  • Multi Trade (Trust Receipt) Facility: RM 3088933.23 as at 30-04-2024 together with interest calculated on principal RM 2776606.62 at 2.50% per annum (BLR based) and penalty interest at 1.00% per annum from 01-05-2024 until full settlement