Malaysia Case Law

25 Jul 2025

MAYBANK ISLAMIC BERHAD 1. ) NG CHEE KAE 2. ) NG LOCK SENG

Citation

JA-24MFC-598-07/2024 (Mahkamah Tinggi)

Court

High Court

Case number

JA-24MFC-598-07/2024 (Mahkamah Tinggi)

Plaintiff satisfied statutory prerequisites for the order for sale: Form 16D complied with s.254(1); no statutory requirement to include monthly payment breakdown or separate in personam demand to the chargor; the certificate of indebtedness was accepted absent any proof of manifest error by defendants; concurrent civil proceedings did not bar the in rem remedy; therefore there was no 'cause to the contrary' and the application for order for sale was allowed.

• Charge
• Order for sale
• Section 256 national land code
• Form 16d notice
• Certificate of indebtedness
• Cause to the contrary

22 May 2025

HONG LEONG ISLAMIC BANK BERHAD SONATA CREST SDN BHD PENCELAH MEGAFEST SDN. BHD. PIHAK TERKILAN MAPLE TRICOT INDUSTRIES SDN BHD

Citation

JB-24FC-83-07/2024 (Mahkamah Tinggi)

Court

High Court

Case number

JB-24FC-83-07/2024 (Mahkamah Tinggi)

The Company failed to establish a proprietary interest in the land (its pleaded remedy was predominantly damages and it did not plead grounds under s340 NLC to defeat the registered transfer or charge), the Plaintiff had no notice of any subsisting caveat at the time the charge was created, and the Order for Sale had been drawn up and perfected; therefore the Company was not entitled to intervene or to a stay in the foreclosure proceeding and the proper remedy was to commence a fresh action. Both intervention applications were dismissed with costs.

• Intervention
• Order for sale
• Foreclosure
• Charge
• Caveat
• Functus officio

27 Feb 2025

BANK OF CHINA (MALAYSIA) BERHAD LEE KIM TIONG @ LEE KIM YEW

Citation

BA-24FC-445-06/2023 (Mahkamah Tinggi)

Court

High Court

Case number

BA-24FC-445-06/2023 (Mahkamah Tinggi)

Because the parties advanced conflicting but plausible positions on the existence of a substantial pledged fixed deposit said to extinguish the debt and the Plaintiff had no record of that fixed deposit, the court found a real question as to the existence of the debt on which the foreclosure was based and dismissed the Originating Summons with liberty to refile so the issue may be resolved appropriately.

• Foreclosure
• Order for sale
• Charge
• Form 16d notice
• Conclusive evidence clause
• Fixed deposit pledge

31 Jul 2024

AMBANK (M) BERHAD 1. ) CSTME RESOURCES SDN BHD 2. ) IMPIANA ALAMJAYA SDN BHD 3. ) ALBERT TAN YEAN HEONG 4. ) WAN AHMAD KAMAL BIN MOHD RASDI

Citation

WA-22NCC-265-05/2023 (Mahkamah Tinggi)

Court

High Court

Case number

WA-22NCC-265-05/2023 (Mahkamah Tinggi)

Plaintiff met the procedural and evidential prerequisites of Order 14 ROC, the exhibited certificate of indebtedness was contractually conclusive and unrebutted by pleaded, particularised evidence of manifest error or triable issues, service and default were established, foreclosure did not bar in personam relief, and defendants' admissions and settlement letters further estopped their denials; summary judgment was therefore entered for the plaintiff.

• Certificate of indebtedness
• Summary judgment
• Foreclosure
• Charge
• Guarantee and indemnity
• Service of demand

26 Aug 2021

ZECON CAPITAL VENTURES SDN BHD AFFIN HWANG INVESTMENT BANK BERHAD

Citation

Q-02(A)-1787-09/2019 (Mahkamah Rayuan)

Court

A

Case number

Q-02(A)-1787-09/2019 (Mahkamah Rayuan)

The High Court materially erred by applying the NLC 'cause to the contrary' approach instead of the SLC s148 'as in the circumstances seems just' test; contemporaneous documentary evidence and surrounding conduct established that the charge was procured by misrepresentation, undue influence and total failure of consideration, rendering the charge invalid and it was not just to order sale; therefore the appeal must be allowed and the sale order set aside.

• Order for sale
• Charge
• Misrepresentation
• Undue influence
• Total failure of consideration
• Judicial discretion

PERWIRA HABIB BANK (MALAYSIA) BERHAD V LUM CHOON REALTY SDN BHD

Citation

PERWIRA HABIB BANK (MALAYSIA) BERHAD V LUM CHOON REALTY SDN BHD

Court

Malaysian court

The Federal Court (majority) dismissed the bank's appeal and upheld the Court of Appeal's decision setting aside the order for sale; the procedural non-compliance identified rendered the order defective such that the order for sale could be set aside, and the appeal against that setting aside was dismissed with costs.

• Charge
• Order for sale
• Foreclosure
• Compliance with procedural rules (o.83 rhc 1980)
• National land code s.254/256/257

BANK KERJASAMA RAKYAT MALAYSIA BERHAD V EMCEE CORPORATION SDN BHD

Citation

BANK KERJASAMA RAKYAT MALAYSIA BERHAD V EMCEE CORPORATION SDN BHD

Court

Malaysian court

The instalment period commenced upon the bank's first release to the marginal deposit account; there is no contractual provision that the first release had to be RM5,000,000; the bank had effected a first release (RM4,345,831.05), statutory and procedural requirements were complied with, and the alleged failure to pay the promised RM5,000,000 amounted only to a personal breach insufficient to establish a 'cause to the contrary' under Low Lee Lian to resist an order for sale.

• Charge
• Order for sale
• National land code s.256
• Cause to the contrary
• Form 16d notice
• Al-bai bithaman ajil