Malaysia Case Law: Decisions & Judgments

Topic

Events of default

Legal area

Court

6 Jun 2025

KERRY LOGISTICS (M) SDN BHD POMELO FASHION MALAYSIA SDN BHD

Citation

WA-12ANCvC-211-12/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-12ANCvC-211-12/2024 (Mahkamah Tinggi)

Clause 12.1 permits either party to terminate the Service Agreement by sixty (60) days prior written notice without giving reasons, subject to express exceptions; the exceptions ('except specifically provided, as follows') refer to the special Events of Default in Clause 13 (and Clause 17 obligations) where shorter or immediate termination is justified (eg 14 working day remedy period or immediate termination on insolvency/government order). The Sessions Court's interpretation was correct and the appeal is dismissed.
23 Apr 2025

TRENERGY INFRASTRUCTURE SDN BHD HONG LEONG BANK BERHAD

Citation

WA-24NCC-425-09/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-425-09/2024 (Mahkamah Tinggi)

The bank's unilateral cancellation of the facilities on 5.3.2024 terminated the Facilities Agreement in its operative purpose and discharged future obligations; Section 16.04 is a substantive security provision tied to the ongoing financing relationship and does not survive that cancellation in these facts, therefore the bank may not lawfully consolidate or set off the Plaintiff's monies to satisfy unrelated liabilities of a security party and the Plaintiff is entitled to the monies and an accounting.
25 Jun 2021

SUCCESSVIEW DEVELOPMENT SDN BHD (CO. NO.: 1056168-D) RHB BANK BERHAD (CO. NO.: 459073-A)

Citation

WA-22NCC-152-03/2020 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-152-03/2020 (Mahkamah Tinggi)

Plaintiff failed to fulfil express conditions precedent for TL2 and TL3 (invoices older than six months), no written waiver existed, availability periods had expired and the bank reasonably and contractually exercised its discretion after reviews and valuer reports that the project was not viable; accordingly defendant was entitled to terminate the undrawn facilities and did not breach contract or duty of care.
24 Dec 2020

KENANGA INVESTMENT BANK BERHAD [No. Syarikat: 197301002193 (15678-H)] SYED MUDZAFFAR BIN SYED ZAINUL ABIDIN (No. K/P: 730719-05-5323/A2488988)

Citation

WA-B52NCC-419-08/2020 (Mahkamah Sesyen)
Court

Sessions Court
Case number

WA-B52NCC-419-08/2020 (Mahkamah Sesyen)

Plaintiff established a prima facie case that defendant owed the indebtedness and complied with Order 14 prerequisites; defendant failed to raise any credible/triable defence as his denials were contradicted by contemporaneous documents and the agreed terms and conditions; therefore summary judgment was proper and plaintiff entitled to judgment for the claimed sum with interest and costs.

Malaysia Case Law

KERRY LOGISTICS (M) SDN BHD POMELO FASHION MALAYSIA SDN BHD

TRENERGY INFRASTRUCTURE SDN BHD HONG LEONG BANK BERHAD

SUCCESSVIEW DEVELOPMENT SDN BHD (CO. NO.: 1056168-D) RHB BANK BERHAD (CO. NO.: 459073-A)

KENANGA INVESTMENT BANK BERHAD [No. Syarikat: 197301002193 (15678-H)] SYED MUDZAFFAR BIN SYED ZAINUL ABIDIN (No. K/P: 730719-05-5323/A2488988)