Malaysia Case Law: Decisions & Judgments

Topic

Substitution of guarantor

Legal area

Court

2 Sept 2025

SABAH DEVELOPMENT BANK BERHAD YUHANIS KAMIL PIHAK KETIGA ALAM DINGIN SDN. BHD.

Citation

WA-22NCC-841-11/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-841-11/2024 (Mahkamah Tinggi)

The Plaintiff established a prima facie claim by producing the Guarantee and Certificate of Indebtedness; substitution required fulfilment of express conditions precedent which were not proven to have been satisfied by the Defendant; the Certificate is conclusive absent fraud or manifest error; third party proceedings do not preclude summary judgment; the Defendant failed to discharge the evidential burden or raise any triable issue, entitling the Plaintiff to summary judgment.
18 Oct 2024

Abdul Halim Bin Mohamad 1. ) Small Medium Enterprise Development Bank Malaysia Berhad 2. ) SMEB Asset Management Sdn Bhd 3. ) Xorix Sdn Bhd 4. ) Maryam Al-Batul Binti Azizuddin

Citation

WA-22NCC-857-11/2023 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-857-11/2023 (Mahkamah Tinggi)

The guarantees were continuing personal obligations of the plaintiff and are not extinguished by sale of shares or resignation; the SSA did not bind the lenders absent their express agreement; the Vesting Order transferred rights to D2 and binds affected persons; silence by the lenders did not amount to acceptance or estoppel; no duty of care or fiduciary duty arose to compel substitution; the plaintiff's causes disclose no triable issues and the action is an abuse of process, warranting striking out with costs.

Malaysia Case Law

SABAH DEVELOPMENT BANK BERHAD YUHANIS KAMIL PIHAK KETIGA ALAM DINGIN SDN. BHD.

Abdul Halim Bin Mohamad 1. ) Small Medium Enterprise Development Bank Malaysia Berhad 2. ) SMEB Asset Management Sdn Bhd 3. ) Xorix Sdn Bhd 4. ) Maryam Al-Batul Binti Azizuddin