KAWAN ENGINEERING SDN BHD 1. ) NYEW KAM CHENG 2. ) TAN MEE YUAN

KAWAN ENGINEERING SDN BHD 1. ) NYEW KAM CHENG 2. ) TAN MEE YUAN

The Letter of Guarantee was duly executed and enforceable against the Defendants; the alleged Loan & Caretaking Agreement was not binding on the Plaintiff and did not discharge the Defendants; although the Certificate of Indebtedness is not conclusive, the Plaintiff independently proved the quantum of RM2,326,676.05 on the balance of probabilities, so judgment is entered for the Plaintiff.

Citation
BA-22NCC-159-11/2023 (Mahkamah Tinggi)
Parties
Plaintiff: KAWAN ENGINEERING SDN BHD; First Defendant: NYEW KAM CHENG; Second Defendant: TAN MEE YUAN
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 September 2025
Case Number
BA-22NCC-159-11/2023 (Mahkamah Tinggi)
Procedural Posture
Civil Suit / Final Judgment on the Merits
Outcome
Claim allowed in favour of Plaintiff; Defendants liable under the Letter of Guarantee
Legal Topics
Letter of Guarantee, Guarantee Enforcement, Privity of Contract, Certificate of Indebtedness, Burden of Proof, Undue Influence, Loan and Caretaking Agreement
Source Language
Malay/English
Contract Law Guarantee Law Evidence Company Law Civil Procedure Letter of Guarantee Guarantee Enforcement Privity of Contract +4 more

Case Brief

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Parties

KAWAN ENGINEERING SDN BHD

Plaintiff

NYEW KAM CHENG

First Defendant

TAN MEE YUAN

Second Defendant

Procedural Posture

Civil Suit / Final Judgment on the Merits

Legal Issues

  1. 1 Whether the Letter of Guarantee dated 12 February 2020 was duly executed and binding on the Defendants
  2. 2 Whether the Defendants are liable under the Letter of Guarantee for RM2,326,676.05
  3. 3 Whether the Loan & Caretaking Agreement and Promissory Note dated 18 February 2020 constituted a binding contract and affected the Guarantee

Ratio Decidendi

The Letter of Guarantee was duly executed and enforceable against the Defendants; the alleged Loan & Caretaking Agreement was not binding on the Plaintiff and did not discharge the Defendants; although the Certificate of Indebtedness is not conclusive, the Plaintiff independently proved the quantum of RM2,326,676.05 on the balance of probabilities, so judgment is entered for the Plaintiff.

Court Disposition

Claim allowed in favour of Plaintiff; Defendants liable under the Letter of Guarantee

Orders

  • Judgment for the Plaintiff against both Defendants jointly and severally in the sum of RM2,326,676.05
  • Costs awarded to the Plaintiff in the sum of RM20,000.00 subject to allocator's fees