Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Penalty/late payment interest

Legal area

Court

ASIA COMMERCIAL FINANCE (M) BHD V EQUATORIAL PROPERTIES SDN BHD

Citation

ASIA COMMERCIAL FINANCE (M) BHD V EQUATORIAL PROPERTIES SDN BHD
Court

Malaysian court

Plaintiff proved entitlement to the updated judgment sum after deducting proceeds of sale; bank ledger and notices were admissible under s73A; interest was properly charged on monthly rests in accordance with the letter of offer (3% above BLR, with additional 3% penalty on late payment); the claim was not premature and the notice of demand was valid; challenges to reserve price were final where no appeal was taken. Accordingly judgment was entered for the Plaintiff in the updated amount RM1,119,140.47 as at 15 August 1997 and costs were awarded to the Plaintiff.
CHUNG KHIAW BANK MALAYSIA BHD V RAJU JAYARAMAN KERPAYA

Citation

CHUNG KHIAW BANK MALAYSIA BHD V RAJU JAYARAMAN KERPAYA
Court

Malaysian court

The guarantee expressly extended liability to interest beyond the RM1,000,000 principal under clause 2(2), so the defendant remained liable for sums owed; banking practice supports an implied right to capitalise interest, which the court accepted; penalty/late interest was not recoverable absent express contract and was deducted; the certificate of indebtedness was not shown to be manifestly erroneous; a demand for a slightly larger amount did not invalidate the notice. On the balance of probabilities plaintiff proved its claim and judgment was entered for the plaintiff for RM1,638,520.64 wit…