SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v 1. ) QUALITEST ENGINEERING SDN. BHD. 2. ) SAMSUDIN BIN SA'AD 3. ) KHAIRUL AZMI BIN ISMAON 4. ) ZULKIFLI BIN RADZI

wa-22m-131-01-2025 High Court (Mahkamah Tinggi) 24 August 2025 • WA-22M-131-01/2025

Catchwords

Civil procedure – Banking and Finance — Islamic banking — Summary judgment — Recovery of outstanding sums under Bai’ Bithaman Ajil and Bai’ Inah facilities – Whether the facilities agreement in breach of Shariah principles and Shariah Advisory Council’s rulings – Whether facilities agreement deemed void ab initio – Whether the banking facilities and guarantees bind the defendants – Whether genuine triable issues raised – Whether proceedings must first be taken against the principal borrower before recourse to the guarantors – Guarantee and Indemnity – Whether certificate of indebtedness conclusive – Whether service of certificate upon defendants a precondition – Whether defendants have proven manifest error – Principal liability clause – Indemnity clause – Whether the Defendants have admitted liability – Reasonable business person test to determine whether Defendants have admitted to indebtedness – Rules of Court 2012, Order 14 rr 1, & 3 – Contracts Act 1950, s.24(e), s.77 & s.78 – Islamic Financial Services Act 2013, s.28 & s.281 – Federal Constitution, Item 7(j) of the Federal List (List I of the 9th Schedule).

Practice Areas

Civil Procedure Islamic Banking & Finance Banking & Finance Constitutional Law

Judges (1)

Yusrin Faidz bin Yusoff Delivered

Parties (5)

QUALITEST ENGINEERING Sdn Bhd Defendant SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD Plaintiff Khairul Azmi bin Ismaon Defendant Samsudin bin Sa'ad Defendant Zulkifli bin Radzi Defendant

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-22m-131-01-2025)