KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD v 1. ) WSJ INTERNATIONAL SDN. BHD. 2. ) NOR RAIHAN BINTI AHMAD KAMARUDIN 3. ) IQBAL BIN MOHD AYUB 4. ) MOHAMED BASIR BIN MAIDIN 5. ) RASHID BIN MAIDIN 6. ) MOHAMED IDRIS BIN MOHAMED 7. ) MOHAMED IZHAR BIN KHURSHED AHMAD 8. ) SELVARAJAN A/L MARUTHAMUTHU

wa-22m-233-04-2019 High Court (Mahkamah Tinggi) 25 February 2026 • WA-22M-233-04/2019 • 12 min read
8 cases cited (0 SG, 8 foreign)

Catchwords

Civil Procedure – Islamic financing – Guarantees – Service of letter of demand – Whether letter of demand duly served via registered post – Deemed service provision – Effect of “principal debtor” clause – Whether prior demand necessary Contract – Guarantees – Islamic financing facilities – Individual guarantees – Liability of guarantors – Whether guarantors released under settlement agreement between bank and principal debtor – Privity of contract – Condition precedent for release – Default on settlement sum – Effect of express reservation of rights against guarantors Islamic Banking – Financing facilities – Murabahah – Tawarruq – Ijarah – Compensation fees (ta’widh) – Whether ta’widh constitutes prohibited interest (riba) – Shariah compliance – Permissibility of compensation for actual loss Evidence – Certificate of indebtedness – Conclusive evidence clause – Whether certificate prima facie proof of debt – Onus on defendant to show manifest error – Section 90A of the Evidence Act 1950 – Standard of proof for damages – Balance of probabilities Equity – Defences – Unconscionability – Retention of title as security – Whether inequitable conduct by bank – Clean hands – Equitable set-off – Failure to prove prejudice Banking – Guarantees – Realisation of securities – Right to proceed against guarantors without first realising other securities – Express contractual clause – Enforceability

Practice Areas

Judges (1)

Counsel (5)

Parties (9)

Statutes Cited

Cases Cited (8)

MY (8)
[1986] 1 MLJ 16 [1989] 2 MLJ 305 [1994] 2 CLJ 1 [1995] 2 MLJ 363 [2006] 2 MLJ 685 [2011] 7 CLJ 594 [2016] 2 CLJ 610 [2025] 5 MLJ 290

Judgment

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Source: eJudgment (wa-22m-233-04-2019)