Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Security for loan

  • 17 Mar 2023

    Shim Vui Geh Dayang Masturah Bt Sahari

    Citation
    S-01(NCvC)(W)-139-03/2022 (Mahkamah Rayuan)
    Court
    NCvC
    Case number
    S-01(NCvC)(W)-139-03/2022 (Mahkamah Rayuan)

    The Court held Shim was not carrying on the business of moneylending on the evidence and had rebutted the statutory presumption under s10OA; the loans were therefore friendly and enforceable, but the mechanism used to take security (outright transfers and sale agreements held in escrow) defeated the Sabah Land Ordinance and Contracts Act and were void; accordingly the transfers are set aside and the borrowers must repay the acknowledged loan sums, default interest at 1.5% p.m. is struck down and the court awarded interest at 5% p.a. from 17.3.2023 to date of realisation; counterclaims for inj…

  • PAK KI YAU

    Citation
    PAK KI YAU
    Court
    Malaysian court

    Considering the instrument as a whole the Loan cum Assignment was entered into by way of security and clause 14 rendered the assignment conditional (terminating on repayment or registration of charge), so it did not operate as an absolute assignment under s.4(3) Civil Law Act 1956; appellants therefore retained locus standi and the magistrate's striking out order was wrong.