ENERVIVE CONSULTANCY SDN BHD (Dahulunya dikenali sebagai MHA59 TECH SDN BHD) v 1. ) Jabatan Ketua Menteri Melaka 2. ) SSN MEDICAL PRODUCTS SDN BHD 3. ) Ang Teck Leong 4. ) Ravendran A/l Utrapathy
Catchwords
"Moneylender's Act 1951 - Plaintiff granted to the Second Defendant a loan amounting to RM3million pursuant to a scheme for the acquisition of shares in Second Defendant company - Clause 5 of the Loan Agreement provided for the imposition of interest at the rate of 7% per annum to be paid on monthly basis. In the event of default an additional 3% interest will be imposed - The Loan was secured by personal guarantees executed by the Third and Fourth Defendants and in addition to that charge of their shares in the Second Defendant - Second Defendant then agreed to enter into a joint partnership with the First Defendant - Plaintiff agreed to not object to that partnership in consideration of an undertaking given by the First Defendant on the settlement of the Second Defendant's loan - A settlement agreement was entered into between the Plaintiff and the Second to the Fourth Defendants and repayment schedule was agreed - The Second Defendant only made part payment and failed to make further payments - The Plaintiff's claim is for RM2,357,498.22. The main issue is whether the Loan Agreement is a moneylending transaction and guided by the Federal Court decision in Triple Zest Trading & Supplies & Ors v Applied Business Technologies Sdn Bhd [2023] 6 MLJ 818/ [2023] 10 CLJ 187 whether the Loan Agreement is void ab initio notwithstanding that the loan is granted pursuant to a genuine acquisition exercise. Held: Court is bound by the decision of the Federal Court. The provision of interest renders the loan as moneylending and is therefore void ab initio - The Plaintiff's claim is dismissed with costs".
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Judgment
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Read on eJudgmentSource: eJudgment (ma-22ncvc-52-10-2020)