17 Jan 2022
KNM PROCESS SYSTEMS SDN BHD 1. ) CECA GOLD COMPANY LIMITED 2. ) MBSB BANK BERHAD
- Citation
- B-02(C)(A)-1701-09/2021 (Mahkamah Rayuan)
- Court
- C
- Case number
- B-02(C)(A)-1701-09/2021 (Mahkamah Rayuan)
The Court allowed the appeal, holding that s.11 Arbitration Act 2005 authorizes the court to grant declaratory and interim relief including against an issuing bank to preserve the arbitration process; s.7 of Act 829 applies as a defence because substantial performance was to occur in Malaysia and COVID-19 measures prevented performance, and the beneficiary's call was unreasonable/unconscionable given ongoing negotiations and agreed extensions; accordingly the demand was declared invalid and the 1st respondent restrained from receiving proceeds, and the High Court order was set aside.