27 May 2021
1. KHEE SAN BERHAD 2. KHEE SAN FOOD INDUSTRIES SDN BHD UNITED OVERSEAS BANK (MALAYSIA) BHD
- Citation
- 22NCC-396-08/2020 (Mahkamah Tinggi)
- Court
- High Court
- Case number
- 22NCC-396-08/2020 (Mahkamah Tinggi)
The court held that the Quincecare duty is of limited application and is generally confined to situations where the bank acts as agent over a customer's funds (eg cheque payments), not to drawdowns under a credit facility such as a bankers acceptance; a bank has no duty to authenticate or investigate third‑party commercial documents presented for drawdown absent being put on inquiry by reasonable grounds of fraud; the Defendant complied with Bank Negara BA Guidelines; accordingly the Plaintiffs' claim disclosed no reasonable cause of action and the Defendant was entitled to summary judgment o…