PEMIUTANG PENGHAKIMAN RHB INVESTMENT BANK BERHAD PENGHUTANG PENGHAKIMAN LIM KIAN BOON

PEMIUTANG PENGHAKIMAN RHB INVESTMENT BANK BERHAD PENGHUTANG PENGHAKIMAN LIM KIAN BOON

The Court held that the Consent Order was a final and enforceable judgment under s.3(1)(i) IA, the Settlement Agreement and Supplemental Settlement Agreement preserved rather than varied or discharged the guarantors' liabilities, the guarantors had contracted out of protections in ss.87, 88, 92 and 94 Contracts Act, the Bankruptcy Notice sufficiently particularised the claim and any minor excess in post‑judgment interest did not reduce the petition below the statutory threshold, and there were no further modes of execution available against the principal debtor so the statutory preconditions for bankruptcy proceedings against the guarantors were satisfied; accordingly the appeals by the...

Citation
WA-29NCC-1069-06/2024 (Mahkamah Tinggi)
Parties
Judgment Debtor: Lim Kian Boon; Judgment Debtor: Ahmad Akmal bin Hamzah; Judgment Creditor: RHB Investment Bank Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
13 January 2026
Case Number
WA-29NCC-1069-06/2024 (Mahkamah Tinggi)
Procedural Posture
Bankruptcy Appeal / High Court Determination on Appeals (grounds of Judgment)
Outcome
Appeals by the judgment creditor allowed; Bankruptcy Notices and leave to commence bankruptcy proceedings against the guarantors upheld
Legal Topics
Setting Aside Bankruptcy Notice, Leave to Commence Bankruptcy Against Guarantor, Consent Order Enforcement, Guarantor Liability and Discharge, Limitation and Interest Computation, Exhaustion of Execution Procedures
Source Language
Malay/English
Insolvency Bankruptcy Contract Law Civil Procedure Setting Aside Bankruptcy Notice Leave to Commence Bankruptcy Against Guarantor Consent Order Enforcement Guarantor Liability and Discharge +2 more

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Parties

Lim Kian Boon

Judgment Debtor

Ahmad Akmal bin Hamzah

Judgment Debtor

RHB Investment Bank Berhad

Judgment Creditor

Procedural Posture

Bankruptcy Appeal / High Court Determination on Appeals (grounds of Judgment)

Legal Issues

  1. 1 Whether the consent order constituted a final judgment for purposes of a Bankruptcy Notice under s.3(1)(i) IA
  2. 2 Whether subsequent settlement agreements and conduct varied or discharged guarantors' liability under ss.87 and 88 Contracts Act 1950
  3. 3 Whether ss.92 and 94 Contracts Act apply to discharge guarantor by impairment or loss of securities

Ratio Decidendi

The Court held that the Consent Order was a final and enforceable judgment under s.3(1)(i) IA, the Settlement Agreement and Supplemental Settlement Agreement preserved rather than varied or discharged the guarantors' liabilities, the guarantors had contracted out of protections in ss.87, 88, 92 and 94 Contracts Act, the Bankruptcy Notice sufficiently particularised the claim and any minor excess in post‑judgment interest did not reduce the petition below the statutory threshold, and there were no further modes of execution available against the principal debtor so the statutory preconditions for bankruptcy proceedings against the guarantors were satisfied; accordingly the appeals by the...

Court Disposition

Appeals by the judgment creditor allowed; Bankruptcy Notices and leave to commence bankruptcy proceedings against the guarantors upheld

Orders

  • Appeals in Encl 37 and Encl 38 in Bankruptcy 1069 allowed with costs
  • Similar orders in Bankruptcy 1070 in relation to Encl 41 and Encl 42 allowed with costs