Malaysia Case Law

21 Oct 2020

Rasma Corporation Sdn Bhd Kamalbina Sdn Bhd

Citation

AA - 24NCVC - 469 - 10/2019 (Mahkamah Tinggi)

Court

High Court

Case number

AA - 24NCVC - 469 - 10/2019 (Mahkamah Tinggi)

The performance bond's clear unambiguous terms requiring payment on demand without proof or conditions and notwithstanding any contestation prevail; the defendant's demand stated its basis and Maybank was entitled to pay; plaintiff's delay and inequitable conduct preclude specific performance, therefore the call on the bond was justified and the originating summons is dismissed.

• Performance bond
• Bank guarantee
• Specific performance
• Contract interpretation
• Clean hands doctrine
• Payment on demand

BANK BUMIPUTRA (MALAYSIA) BHD v SURIA JAYA SDN BHD & ORS

Citation

BANK BUMIPUTRA (MALAYSIA) BHD v SURIA JAYA SDN BHD & ORS

Court

Malaysian court

The guarantee was an irrevocable on‑demand guarantee delivered to the beneficiary and the bank was bound to pay on Petronas's written demand; the bank could not treat the guarantee as cancelled by the borrower. The bank is entitled to recover the sum paid from the borrower under the express indemnity and recovery provisions of the loan agreement.

• Demand guarantee
• Performance bond
• Letter of guarantee
• Indemnity
• Payment on demand
• Cancellation of guarantee