TMF Trustees Malaysia Berhad 1. ) Masraf Al Barakah Sdn Bhd 2. ) Coshare Holdings Berhad

TMF Trustees Malaysia Berhad 1. ) Masraf Al Barakah Sdn Bhd 2. ) Coshare Holdings Berhad

The court held that the Defendants remained bound by continuing obligations under the ACA and ACSA despite assignments; the Defendants breached those obligations by failing to provide complete documentation and to channel salary deduction proceeds, and the asserted defences (bare trustee status, garnishee/frozen accounts, tax dispute) did not excuse non‑compliance. Monetary compensation was inadequate and specific performance/mandatory relief was appropriate; accordingly the Originating Summons was allowed against the 2nd Defendant and the Plaintiff was entitled to compel compliance as sought (with specified modifications).

Citation
WA-24NCC-835-08/2022 (Mahkamah Tinggi)
Parties
Plaintiff: TMF Trustees Malaysia Berhad; 1st Defendant: Masraf Al Barakah Sdn. Bhd.; 2nd Defendant: Coshare Holdings Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
27 April 2023
Case Number
WA-24NCC-835-08/2022 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (commercial Division, Specific Relief) / Judgment on Originating Summons
Outcome
Originating Summons allowed against the 2nd Defendant; prayers 2 and 8 granted with modifications to prayers 2.1, 2.2, 2.3, 2.4 and 3; costs awarded.
Legal Topics
Specific Performance, Mandatory Injunction, Assignment of Rights, Enforcement of Security, Salary Deduction Schemes, Sukuk Enforcement
Source Language
Malay/English
Contract Equity Specific Relief Trusts Commercial Law Securities Finance Specific Performance Mandatory Injunction +4 more

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Parties

TMF Trustees Malaysia Berhad

Plaintiff

Masraf Al Barakah Sdn. Bhd.

1st Defendant

Coshare Holdings Berhad

2nd Defendant

Procedural Posture

Originating Summons (commercial Division, Specific Relief) / Judgment on Originating Summons

Legal Issues

  1. 1 Whether the Defendants breached obligations under the Assignment of Collaboration Agreement (ACA) and Assignment of Credit Sales Agreement (ACSA)
  2. 2 Whether specific performance and mandatory/perpetual injunctions are appropriate reliefs
  3. 3 Whether the 1st Defendant can rely on being a "bare trustee" to avoid liability

Ratio Decidendi

The court held that the Defendants remained bound by continuing obligations under the ACA and ACSA despite assignments; the Defendants breached those obligations by failing to provide complete documentation and to channel salary deduction proceeds, and the asserted defences (bare trustee status, garnishee/frozen accounts, tax dispute) did not excuse non‑compliance. Monetary compensation was inadequate and specific performance/mandatory relief was appropriate; accordingly the Originating Summons was allowed against the 2nd Defendant and the Plaintiff was entitled to compel compliance as sought (with specified modifications).

Court Disposition

Originating Summons allowed against the 2nd Defendant; prayers 2 and 8 granted with modifications to prayers 2.1, 2.2, 2.3, 2.4 and 3; costs awarded.

Orders

  • Originating Summons allowed against 2nd Defendant; prayers 2 and 8 granted subject to modifications to prayers 2.1, 2.2, 2.3, 2.4 and 3
  • 2nd Defendant ordered to comply with ACA and ACSA and to provide the requested documentation and cooperation necessary for the Plaintiff to enforce the Security Documents