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 Agreement's clause mirroring the proviso to s17 MLA permits the lender to charge simple default interest at 8% on arrears in addition to continuing contractual interest; concurrent charging does not constitute compound interest because the principal remains unchanged and the statute contemplates such additional simple interest; no triable issues exist and the 1st and 2nd Defendants' counterclaims are plainly unsustainable, entitling the Plaintiff to summary judgment and striking out of the counterclaims.

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/moneylender Dispute (contract and Statutory Interpretation) / Hearing of Plaintiff's Applications for Summary Judgment (order 14 Roc) and Strike Out of Counterclaims (order 18 R19 Roc)
Outcome
Both of the Plaintiff's applications allowed; summary judgment granted and 1st and 2nd Defendants' counterclaims struck out; costs awarded to Plaintiff.
Legal Topics
Summary Judgment, Default Interest, Prohibition of Compound Interest, Statutory Interpretation of Moneylenders Act 1951, Strike Out of Counterclaims
Source Language
Malay/English
Contract Law Banking and Finance Moneylenders Law Civil Procedure Summary Judgment Default Interest Prohibition of Compound Interest Statutory Interpretation of Moneylenders Act 1951 +1 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 4 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

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/moneylender Dispute (contract and Statutory Interpretation) / Hearing of Plaintiff's Applications for Summary Judgment (order 14 Roc) and Strike Out of Counterclaims (order 18 R19 Roc)

Legal Issues

  1. 1 Whether contractual interest (10% p.a.) may continue to be charged after loan period expires concurrently with statutory default interest (8% p.a.)
  2. 2 Whether simultaneous charging of contractual and default interest amounts to prohibited compound interest under s17 MLA
  3. 3 Whether there are triable issues or defects in execution/compliance with the MLA sufficient to defeat summary judgment or sustain counterclaims

Ratio Decidendi

The Agreement's clause mirroring the proviso to s17 MLA permits the lender to charge simple default interest at 8% on arrears in addition to continuing contractual interest; concurrent charging does not constitute compound interest because the principal remains unchanged and the statute contemplates such additional simple interest; no triable issues exist and the 1st and 2nd Defendants' counterclaims are plainly unsustainable, entitling the Plaintiff to summary judgment and striking out of the counterclaims.

Court Disposition

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

Orders

  • Summary judgment entered for the Plaintiff
  • The 1st and 2nd Defendants' Counterclaims are struck out