ARIFFIN BIN A GHANI v MALAYAN BANKING BERHAD
Catchwords
"Insolvency Act 1967 - Section 8(2) on prohibition to charge interest from date of bankruptcy when secured creditor fail to realize security within 12 months - whether Defendant was wrong in placing the bankrupt Plaintiff in the same interest bearing account with the co-borrower - whether the Plaintiff is estopped from raising illegality of interest when he had agreed to a redemption statement issued by Defendant - whether Plaintiff is entitled to any over payment. Held: (i) section 8(2) of the Act prohibits charging of interest when the secured creditor fails to realize the security within a period of 12 months from date of bankruptcy - Defendant should have segregated the Plaintiff's indebtedness to reflect the application of section 8(2) - the application of section 8(2) overrides any agreed redemption statement and therefore does not estop the Plaintiff from challenging the imposition of interest - Plaintiff is not entitled to refund as any monies paid is also applied towards the general indebtedness under the loan account".
Judges (1)
Judgment
Read the full judgment on the official Malaysia Courts portal.
Read on eJudgmentSource: eJudgment (ma-24ncvc-500-12-2023)