ACE CREDIT (M) SDN BHD v 1. ) PIONEER CONGLOMERATE SDN BHD 2. ) KBH MARINE INDUSTRY SDN. BHD. 3. ) Chin Swee Chong 4. ) Sin Soon Hock Sdn Bhd 5. ) TAN POO CHUAN 6. ) YEO BOON LEONG 7. ) TAN SEOK GAIK 8. ) LIM SOO AUN 9. ) KOAY YEAT YEE

p-02imncvc-337-03-2023 Court of Appeal (Mahkamah Rayuan) 12 October 2025 • P-02(IM)(NCvC)-337-03/2023 • 4 min read

Catchwords

The Court of Appeal held that the loan agreement between Ace Credit (M) Sdn Bhd and Pioneer Conglomerate Sdn Bhd was void under section 10P of the Moneylenders Act 1951 for non-compliance with the prescribed form and excessive interest. All related security documents and caveats were likewise invalid. However, applying section 66 of the Contracts Act 1950, the Court ordered restitution of monies advanced, as the transaction was void but not substantively illegal. The High Court’s decision was affirmed with slight variation and no order as to costs.

Practice Areas

The Court of Appeal held that the loan agreement between Ace Credit (M) Sdn Bhd and Pioneer Conglomerate Sdn Bhd was void under section 10P of the Moneylenders Act 1951 for non-compliance with the prescribed form and excessive interest. All related security documents and caveats were likewise invalid. However, applying section 66 of the Contracts Act 1950, the Court ordered restitution of monies advanced, as the transaction was void but not substantively illegal. The High Court’s decision was affirmed with slight variation and no order as to costs.

Judges (3)

Alwi bin Abdul Wahab Coram Che Mohd Ruzima bin Ghazali Coram Lim Chong Fong Delivered

Parties (10)

ACE CREDIT Sdn Bhd Appellant KBH MARINE INDUSTRY Sdn Bhd Respondent PIONEER CONGLOMERATE Sdn Bhd Respondent Sin Soon Hock Sdn Bhd Respondent Chin Swee Chong Respondent Koay Yeat Yee Respondent Lim Soo Aun Respondent Tan Poo Chuan Respondent Tan Seok Gaik Respondent Yeo Boon Leong Respondent

Case Significance

ACE CREDIT (M) SDN BHD v 1. ) PIONEER CONGLOMERATE SDN BHD 2. ) KBH MARINE IN... is a Court of Appeal (Mahkamah Rayuan) decision dated October 12, 2025 (citation: p-02imncvc-337-03-2023). The panel comprised Alwi bin Abdul Wahab, Che Mohd Ruzima bin Ghazali and Lim Chong Fong, with Lim Chong Fong delivering the judgment.

What was the outcome of ACE CREDIT (M) SDN BHD v 1. ) PIONEER CONGLOMERATE SDN BHD 2. ) KBH MARINE IN...?

ACE CREDIT (M) SDN BHD v 1. ) PIONEER CONGLOMERATE SDN BHD 2. ) KBH MARINE IN... is a Court of Appeal decision dated October 12, 2025. The case was heard by Alwi bin Abdul Wahab. See the full judgment for details.