Rasma Corporation Sdn Bhd Kamalbina Sdn Bhd

Rasma Corporation Sdn Bhd Kamalbina Sdn Bhd

The performance bond's clear unambiguous terms requiring payment on demand without proof or conditions and notwithstanding any contestation prevail; the defendant's demand stated its basis and Maybank was entitled to pay; plaintiff's delay and inequitable conduct preclude specific performance, therefore the call on the bond was justified and the originating summons is dismissed.

Citation
AA - 24NCVC - 469 - 10/2019 (Mahkamah Tinggi)
Parties
Plaintiff/contractor: Rasma Corporation Sdn. Bhd.; Defendant/principal: Kamalbina Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 October 2020
Case Number
AA - 24NCVC - 469 - 10/2019 (Mahkamah Tinggi)
Procedural Posture
Originating Summons / Judgment (final)
Outcome
Originating Summons dismissed; judgment for the defendant
Legal Topics
Performance Bond, Bank Guarantee, Specific Performance, Contract Interpretation, Clean Hands Doctrine, Payment on Demand, Construction Sub Contract
Source Language
Malay/English
Contract Commercial Law Bank Guarantee Equity Construction Law Performance Bond Specific Performance Contract Interpretation +3 more

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Parties

Rasma Corporation Sdn. Bhd.

Plaintiff/contractor

Kamalbina Sdn. Bhd.

Defendant/principal

Procedural Posture

Originating Summons / Judgment (final)

Legal Issues

  1. 1 Whether the defendant's call on the performance bond was justified and legitimate
  2. 2 Whether the terms of the performance bond prevail over the NSC contract and preclude enquiry into breach
  3. 3 Whether plaintiff is entitled to equitable relief given its conduct

Ratio Decidendi

The performance bond's clear unambiguous terms requiring payment on demand without proof or conditions and notwithstanding any contestation prevail; the defendant's demand stated its basis and Maybank was entitled to pay; plaintiff's delay and inequitable conduct preclude specific performance, therefore the call on the bond was justified and the originating summons is dismissed.

Court Disposition

Originating Summons dismissed; judgment for the defendant

Orders

  • Claim dismissed with costs of RM5,000 subject to allocatur fee payable to the defendant
  • Judgment entered for the defendant