14 Mar 2024
BANK KERJASAMA RAKYAT MALAYSIA BERHAD 1. ) GM HEALTHCARE SDN BHD & 1 LAGI 2. ) Sunshine Fleet Sdn Bhd 3. ) Frontier Structure Sdn Bhd 4. ) Ahmad Zaim Bin Hilmi 5. ) Chua Zhi Bin 6. ) Ng Lee Sen
- Citation
- 02(f)-62-10/2023(W) (Mahkamah Persekutuan)
- Court
- f
- Case number
- 02(f)-62-10/2023(W) (Mahkamah Persekutuan)
The Federal Court held that (1) a bank’s breach of a facility agreement does not, as a matter of course, exonerate the borrower or guarantors from repaying monies disbursed; the borrower’s claim for damages is distinct from the lender’s right of recovery; (2) upon notice of an application for a Mareva injunction over monies held, a bank is legally justified in withholding payment pending determination because the monies are the subject matter of the dispute and disbursement risks contempt; (3) paying out disputed monies in the ‘ordinary course’ is not permitted in the circumstances of this ca…