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

wa-22ncc-857-11-2023 High Court (Mahkamah Tinggi) 17 October 2024 • WA-22NCC-857-11/2023 • 37 min read
16 cases cited (0 SG, 16 foreign)

Outcome

I therefore grant order in terms of D1 and D2’s applications in Enclosures 129 and 128 respectively. The Plaintiff's action against them is hereby struck out with costs. I order costs of RM4,000.00 to be paid by the Plaintiff for each enclosure.

Quoted verbatim from the judgment of High Court (Mahkamah Tinggi) (wa-22ncc-857-11-2023). Read the full judgment on the official Malaysia Courts portal for the complete decision.

Catchwords

BANKING LAW: Guarantee – Release and discharge of guarantor – Whether disposal of shares and resignation as director extinguishes guarantor's liability – Whether silence of bank amounts to implicit approval of release request – Whether bank owes duty to facilitate release of guarantor – Whether inconsistent treatment of guarantors – Whether banker-customer relationship attracts fiduciary obligations CONTRACT LAW: Guarantee and indemnity – Continuing guarantee – Nature of guarantor's liability – Whether guarantor's obligations dependent on status as director/shareholder – Whether share sale agreement between guarantor and third party binding on bank – Whether bank's silence constitutes acceptance of variation – Whether vesting order transfers all rights and obligations to assignee bank CIVIL PROCEDURE: Striking out – Summary determination – Whether claims disclose reasonable cause of action – Whether complex issues requiring trial – Whether clear case of abuse of process – Whether re-litigation of issues already decided

Practice Areas

Civil Procedure Banking & Finance Contract

Judges (1)

Atan Mustaffa Yussof Ahmad Delivered

Counsel (5)

Amelda Fuad Abi & Aidil Firm Mohana Krishnan Firm Amelda Md Din Counsel Defendant Prabhkirat Singh Counsel Plaintiff Siti Salehah Counsel Defendant

Parties (5)

SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD Defendant SMEB ASSET MANAGEMENT Sdn Bhd Defendant XORIX Sdn Bhd Defendant Abdul Halim bin Mohamad Plaintiff Dr. Maryam Al-batul binti Azizuddin Defendant

Statutes Cited

Contracts Act 1950 (Cap 136)
Rules of Court 2012

Cases Cited (16)

MY (16)
[1985] 1 MLJ 18 [1993] 3 MLJ 36 [1995] 3 CLJ 783 [2002] 6 MLJ 507 [2005] 8 CLJ 239 [2007] 3 MLJ 609 [2011] 6 MLJ 70 [2012] 3 CLJ 708 [2012] 3 MLJ 449 [2012] 3 MLJ 758 [2013] 4 MLJ 520 [2016] 3 MLJ 1 [2018] 1 MLJ 769 [2018] 3 MLJ 72 [2019] MLJU 1098 [2022] 6 CLJ 513

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-22ncc-857-11-2023)