M.E.B TECHNOLOGY SDN BHD 1. ) PETROTECHNIC ENGINEERING AND CONSTRUCTION SDN BHD 2. ) PUBLIC BANK BERHAD

M.E.B TECHNOLOGY SDN BHD 1. ) PETROTECHNIC ENGINEERING AND CONSTRUCTION SDN BHD 2. ) PUBLIC BANK BERHAD

Plaintiff failed to satisfy the strict requirements for an Erinford injunction: damages were an adequate remedy, the balance of convenience favored the 1st Defendant (who required the guaranteed sum to meet alleged losses and is able to repay), and the alleged reputational harm did not justify injunctive relief; therefore the Erinford injunction application (Enclosure 42) was dismissed with costs.

Citation
WA-24C(ARB)-42-10/2022 (Mahkamah Tinggi)
Parties
Plaintiff: M.E.B Technology Sdn Bhd; 1st Defendant: Petrotechnic Engineering and Construction Sdn Bhd; 2nd Defendant: Public Bank Berhad
Court
ARB
Jurisdiction
Malaysia
Judgment Date
7 March 2023
Case Number
WA-24C(ARB)-42-10/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (construction Court) / Interlocutory Erinford Injunction Application Heard and Dismissed
Outcome
Enclosure 42 (Erinford injunction application) dismissed with costs
Legal Topics
Erinford Injunction, Interim Injunction, Bank Guarantee Call, Novation, Specific Relief, Balance of Convenience, Adequacy of Damages, Costs
Source Language
Malay/English
Construction Law Contract Law Banking Law Civil Procedure Arbitration Law Equity and Remedies Erinford Injunction Interim Injunction +6 more

Case Brief

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Parties

M.E.B Technology Sdn Bhd

Plaintiff

Petrotechnic Engineering and Construction Sdn Bhd

1st Defendant

Public Bank Berhad

2nd Defendant

Procedural Posture

Originating Summons (construction Court) / Interlocutory Erinford Injunction Application Heard and Dismissed

Legal Issues

  1. 1 Whether an Erinford injunction should restrain the bank from paying on the bank guarantee pending appeal
  2. 2 Whether damages are an adequate remedy and balance of convenience favors granting an injunction
  3. 3 Whether the 1st Defendant acted unconscionably in calling the bank guarantee

Ratio Decidendi

Plaintiff failed to satisfy the strict requirements for an Erinford injunction: damages were an adequate remedy, the balance of convenience favored the 1st Defendant (who required the guaranteed sum to meet alleged losses and is able to repay), and the alleged reputational harm did not justify injunctive relief; therefore the Erinford injunction application (Enclosure 42) was dismissed with costs.

Court Disposition

Enclosure 42 (Erinford injunction application) dismissed with costs

Orders

  • Enclosure 42 dismissed
  • Costs awarded to 1st Defendant (RM3,000)