Bank Pembangunan Malaysia Berhad

On the court record

Illustrates how the courts apply the summary-judgment regime and the law of guarantees to the recovery of development financing and manage the procedural incidents of enforcement.

Bank Pembangunan Malaysia Berhad (the Development Bank of Malaysia) appears in this corpus as a development financier whose reported matters are decided in the High Court, in roles including plaintiff, judgment creditor, defendant and aggrieved party. The decisions concentrate on the recovery of financing and the enforcement of the securities that support it. Summary judgment under Order 14 rule 1 of the Rules of Court 2012 is a recurring mechanism: the bank, having granted banking facilities, applies for summary judgment where the borrower has defaulted, and the court decides whether the bank has established a prima facie case and whether the defendant has raised a bona fide triable issue that requires a full trial. The corpus also engages the position of guarantors, including an application by a guarantor to be discharged from the guarantee obligations he had undertaken, and the leave required to commence bankruptcy proceedings against a guarantor. Procedural questions feature as well, such as an application to stay proceedings pending the outcome of an appeal in another suit and whether the special circumstances required for a stay exist, and the entitlement of secured creditors to claim interest after a winding-up order. Because the bank appears both as the party enforcing its financing and as a party answering incidental claims, the decisions reflect the ordinary progression of a development lender's recovery litigation from summary judgment through the pursuit of guarantors to bankruptcy. The matters are decided in the High Court. Collectively the decisions in which Bank Pembangunan is a party illustrate how the courts apply the summary-judgment regime and the law of guarantees to the recovery of development financing and manage the procedural incidents of enforcement. Several of the reported matters also concern the special circumstances required before proceedings will be stayed pending an appeal in a related suit, and the entitlement of secured creditors to interest after a winding-up order, so that the decisions address the incidents of enforcement as well as its substance. Across these matters the bank appears as a development lender pursuing recovery through the ordinary machinery of the civil courts.