24 Sept 2020
PUBLIC BANK BERHAD 1. RIA REALITI SDN BHD 2. WONG KIEN CHING 3. CHEW CHING TONG 4. SEE TECK ANN 5. TAN BOO SENG 6. RASAMUTU SDN BHD
- Citation
- S-02(IM)(NCVC)-529-03/2019 (Mahkamah Rayuan)
- Court
- IM
- Case number
- S-02(IM)(NCVC)-529-03/2019 (Mahkamah Rayuan)
Appeal allowed: Court held the loan agreements and related security documents were not tainted by illegality because the bank was a bona fide financier, the loans were primarily to finance sub-leases (permitted under Sabah Land Ordinance), there was no finding that the bank had knowledge of illegality, and the Neway authority was distinguishable on facts; alternatively, even if illegality attached the bank would be entitled to relief under restitution (s66) and the Patel v Mirza discretionary approach; guarantors liable and counterclaims dismissed.