SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v WIDAD BUSINESS GROUP SDN BHD

wa-22m-1360-10-2024 High Court (Mahkamah Tinggi) 21 April 2025 • WA-22M-1360-10/2024

Catchwords

Civil procedure – Islamic banking – Summary judgment against corporate guarantor – Borrower failed to make installment payments in respect of loan facility granted by plaintiff under Islamic financing facility based on Bai’ Bithaman Ajil – Judgment obtained against borrower and 2 individual guarantors in a separate suit – Whether plaintiff had established prima facie case and was entitled to summary judgment – Whether the claim is premature – Corporate Guarantee – Principal liability clause – Whether demand was effectively served on guarantor – Whether plaintiff is obliged to notify guarantor of reactivation of restructuring with borrower – Certificate of Indebtedness – Conclusive Evidence Clause – Whether payment before and after restructuring were unaccounted for – Whether defendant have shown evidence of manifest error – Whether certificate of indebtedness tained by ta’addi (misconduct), taqsir (negligence) or mukhalafah as-shurul (breach of specified terms) – Whether defendants successfully raised triable issues – Rules of Court 2012, Order 14 rr 1, 3 – Contracts Act 1950, s.77 & s.78.

Practice Areas

Civil procedure

Judges (1)

Yusrin Faidz bin Yusoff Delivered

Parties (2)

SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD Plaintiff WIDAD BUSINESS GROUP Sdn Bhd Defendant

Case Significance

SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v WIDAD BUSINESS GRO... is a High Court (Mahkamah Tinggi) decision dated April 21, 2025 (citation: wa-22m-1360-10-2024). The case was decided by Yusrin Faidz bin Yusoff.

What was the outcome of SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v WIDAD BUSINESS GRO...?

SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v WIDAD BUSINESS GRO... is a High Court decision dated April 21, 2025. The case was heard by Yusrin Faidz bin Yusoff. See the full judgment for details.