SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD v 1. ) LKW PETROLEUM SDN. BHD. 2. ) LEE KOK WAI 3. ) MOEY MEI YOKE

wa-22m-1637-11-2023 High Court (Mahkamah Tinggi) 5 September 2024 • WA-22M-1637-11/2023

Catchwords

Civil procedure – Islamic banking – Summary judgment – Application for – Failure to make installment payments in respect of loan facility granted by plaintiff under Islamic financing facility based on commodity murabahah – Whether plaintiff had established prima facie case and was entitled to summary judgment – Joint and several guarantee – Principal liability clause – Whether disbursement pleaded – Whether main agreement void due to subsequent restructurings – Whether demand was effectively served on guarantors – Whether guarantors’ liability extinguished due to variance and restructuring of main agreement – Certificate of Indebtedness – Conclusive Evidence Clause – Whether ibra’ should be incorporated in certificate of indebtedness – Whether guarantors have shown evidence of manifest error, ta’addi (misconduct), taqsir (negligence) and/or mukhalafah as-shurul (breach of specified terms) – Whether Guarantors successfully raised triable issues – Rules of Court 2012, Order 14 rr.1 & rr.3 – Contracts Act 1950, s.77, s.78, s.86, & s. 88 – Evidence Act 1950, s.115.

Practice Areas

Civil procedure

Judges (1)

Yusrin Faidz bin Yusoff Delivered

Parties (4)

LKW PETROLEUM Sdn Bhd Defendant SMALL MEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIA BERHAD Plaintiff Lee Kok Wai Defendant Moey Mei Yoke Defendant

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-22m-1637-11-2023)