MAA CREDIT BERHAD 1. ) BEST BIRDNEST SDN BHD 2. ) GREENPOWER VALUE SDN BHD 3. ) DATUK LIM SUE BENG 4. ) LEE SIAH SIAN @ LEE HAY MN

MAA CREDIT BERHAD 1. ) BEST BIRDNEST SDN BHD 2. ) GREENPOWER VALUE SDN BHD 3. ) DATUK LIM SUE BENG 4. ) LEE SIAH SIAN @ LEE HAY MN

The Court held that the Agreement and the MLA proviso permit the 10% contractual interest to continue after the loan period while an 8% p.a. simple default interest may be charged on arrears concurrently; this concurrent charging does not constitute compound interest or exceed statutory limits, no triable issues arise and the 1st and 2nd Defendants' counterclaims are plainly unsustainable.

Citation
WA-22NCC-183-04/2023 (Mahkamah Tinggi)
Parties
Plaintiff: MAA Credit Berhad; 1st Defendant: Best Birdsnest Sdn Bhd; 2nd Defendant: Greenpower Value Sdn Bhd; 3rd Defendant: Datuk Lim Sue Beng; 4th Defendant: Lee Siah Sian @ Lee Hay Hian
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 December 2023
Case Number
WA-22NCC-183-04/2023 (Mahkamah Tinggi)
Procedural Posture
Civil – Loan Recovery / Moneylending / Applications: Summary Judgment Under Order 14 ROC and Strike Out Under Order 18 R.19(1) ROC (applications Heard Together)
Outcome
Both of the Plaintiff's applications allowed; summary judgment and strike out granted; 1st and 2nd Defendants' counterclaims struck out; costs awarded to Plaintiff.
Legal Topics
Summary Judgment, Strike Out, Interest Calculation, Default Interest, Prohibition of Compound Interest, Compliance With Moneylenders Act
Source Language
Malay/English
Contract Banking and Finance Moneylenders Act 1951 Civil Procedure Debt Recovery Summary Judgment Strike Out Interest Calculation +3 more

Case Brief

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Parties

MAA Credit Berhad

Plaintiff

Best Birdsnest Sdn Bhd

1st Defendant

Greenpower Value Sdn Bhd

2nd Defendant

Datuk Lim Sue Beng

3rd Defendant

Lee Siah Sian @ Lee Hay Hian

4th Defendant

Procedural Posture

Civil – Loan Recovery / Moneylending / Applications: Summary Judgment Under Order 14 ROC and Strike Out Under Order 18 R.19(1) ROC (applications Heard Together)

Legal Issues

  1. 1 Whether contractual interest at 10% can continue after the contractual loan period expired
  2. 2 Whether charging contractual interest concurrently with 8% default interest amounts to compound or prohibited interest under s17 MLA
  3. 3 Whether there are triable issues or arguable grounds sufficient to defeat summary judgment or sustain the 1st and 2nd Defendants' counterclaims (including alleged MLA non-compliance)

Ratio Decidendi

The Court held that the Agreement and the MLA proviso permit the 10% contractual interest to continue after the loan period while an 8% p.a. simple default interest may be charged on arrears concurrently; this concurrent charging does not constitute compound interest or exceed statutory limits, no triable issues arise and the 1st and 2nd Defendants' counterclaims are plainly unsustainable.

Court Disposition

Both of the Plaintiff's applications allowed; summary judgment and strike out granted; 1st and 2nd Defendants' counterclaims struck out; costs awarded to Plaintiff.

Orders

  • Enclosure 10 (summary judgment application under Order 14 ROC) allowed
  • Enclosure 29 (strike out of 1st and 2nd Defendants' counterclaims under Order 18 r.19(1)(a),(b)&(d) ROC) allowed; counterclaims struck out