Banking Law
9 cases · March 2019 to June 2026
Case Volume by Year
1 19
1 24
3 25
4 26
2019–2026
Key Issues & Sub-Topics
Banking facilities — Overdraft facilities — Bankers’ acceptance facilities — Letters of credit — Trust receipt facilities — Default under banking facilities secured by registered charges. 1 Secured lending — Multiple registered charges — Enforcement of security — Chargee’s entitlement to realise charged land upon default. 1 Certificate of indebtedness — Conclusive evidence clause — Evidential effect of certificate issued by authorised bank officer — Burden on chargor to establish fraud, manifest error or inaccuracy. 1 Secured indebtedness — Quantum of indebtedness — Whether indebtedness established — Absence of specific challenge to certified amount. 1 Loan facility — Fixed loan facility — Borrower in liquidation — Guarantees — Action against guarantors — Recovery of outstanding indebtedness. 1 Guarantees — Guarantors adjudged bankrupt — Creditor’s right to proceed against guarantors — Co-extensive liability of guarantor and principal debtor. 1 Islamic financing — Cash Line-i — Commodity Murabahah Term Financing-i (CMTF-i) — Guarantee — Default — Acceleration — Cross-default — Demand notices — Certificate of indebtedness — Conclusiveness clause — Finance Service Reserve Account (FSRA) — Operating Account (OA) — Set-off — Liquidation of General Investment Account (GIA) — Whether enforcement proper. 1 Duty of care — Quincecare duty — Elderly preferred customer — Debit card fraud — ATM withdrawals and MEPS transfers over 14 consecutive days — Whether bank put on inquiry by unusual transaction pattern — Whether bank breached duty by failing to exercise fraud detection systems and contractual power to freeze account under Clause 21.1(iv) — Philipp v Barclays Bank UK Plc [2023] 3 WLR 284 distinguished — Bank's duty to honour mandate "save in extreme cases" — Fiduciary duty not arising in banker-customer relationship — BNM guidelines as subsidiary legislation not requiring specific pleading — Causation — Novus actus interveniens — Whether deceased's voluntary disclosure of PIN and surrender of debit card broke chain of causation — "But for" test — Contributory negligence — Apportionment at 40:60 under s.12 Civil Law Act 1956 — Failure to mitigate rejected — Adverse inference under s.114(g) Evidence Act 1950 declined — General damages dismissed for want of evidence — Judgment for Plaintiff at 60% of RM529,774.79 1 Islamic banking — Commodity Murabahah Term Financing-i — Alleged Shariah non-compliance — Whether facility void — Effect of non-— Whether regulatory breach renders contract unenforceable compliance — Set-off — Fixed deposits — Acceleration upon default — Whether termination a condition precedent — Right of bank to combine accounts — Islamic Financial Services Act 2013 ss 28 & 281 — Section 24(e) Contracts Act 1950 1 Islamic finance — Bai' Bithaman Ajil (BBA) facility — Default — Ibra' (rebate) — Whether ibra' deductible in computation of debt upon default by bank — Distinction between early settlement by customer and termination upon default — Conclusive evidence clauses — Whether “manifest error” shown 1 Banker–customer relationship — Right to combine and consolidate accounts — Set-off clause operative post-liquidation — Seven-day notice requirement satisfied by contractual deeming provision — Proof of posting sufficient. 1 Misappropriation of Funds — Knowing Receipt — Constructive Knowledge — Negligence 1 Banker and customer — Joint account — Bank honoured forged cheque presented by surviving joint account holder (“survivor”) — Whether survivorship clause conferred survivor beneficial ownership of the money in joint account — Whether bank absolved its liability under joint account by adhering to survivorship clause — Whether payment made pursuant to survivorship clause by way of a forged cheque and in breach of s 24 of the Bills of Exchange Act 1949 constituted a valid discharge by bank — Whether bank had contractual relationship with respondents — Whether respondents had cause of action over joint account to which they were not parties — Bills of Exchange Act 1949 ss 24 and 73A Evidence Law — Proof — Admissibility — Admissibility of oral evidence — Whether oral evidence could be admitted to contradict written term of banking contract that joint account was personal account — Whether Court of Appeal erred in admitting oral evidence 1
Banking facilities — Overdraft facilities — Bankers’ acceptance facilities — Letters of credit — Trust receipt facilities — Default under banking facilities secured by registered charges. 1 case
Secured lending — Multiple registered charges — Enforcement of security — Chargee’s entitlement to realise charged land upon default. 1 case
Secured indebtedness — Quantum of indebtedness — Whether indebtedness established — Absence of specific challenge to certified amount. 1 case
Loan facility — Fixed loan facility — Borrower in liquidation — Guarantees — Action against guarantors — Recovery of outstanding indebtedness. 1 case
Guarantees — Guarantors adjudged bankrupt — Creditor’s right to proceed against guarantors — Co-extensive liability of guarantor and principal debtor. 1 case
Islamic financing — Cash Line-i — Commodity Murabahah Term Financing-i (CMTF-i) — Guarantee — Default — Acceleration — Cross-default — Demand notices — Certificate of indebtedness — Conclusiveness clause — Finance Service Reserve Account (FSRA) — Operating Account (OA) — Set-off — Liquidation of General Investment Account (GIA) — Whether enforcement proper. 1 case
Duty of care — Quincecare duty — Elderly preferred customer — Debit card fraud — ATM withdrawals and MEPS transfers over 14 consecutive days — Whether bank put on inquiry by unusual transaction pattern — Whether bank breached duty by failing to exercise fraud detection systems and contractual power to freeze account under Clause 21.1(iv) — Philipp v Barclays Bank UK Plc [2023] 3 WLR 284 distinguished — Bank's duty to honour mandate "save in extreme cases" — Fiduciary duty not arising in banker-customer relationship — BNM guidelines as subsidiary legislation not requiring specific pleading — Causation — Novus actus interveniens — Whether deceased's voluntary disclosure of PIN and surrender of debit card broke chain of causation — "But for" test — Contributory negligence — Apportionment at 40:60 under s.12 Civil Law Act 1956 — Failure to mitigate rejected — Adverse inference under s.114(g) Evidence Act 1950 declined — General damages dismissed for want of evidence — Judgment for Plaintiff at 60% of RM529,774.79 1 case
Islamic banking — Commodity Murabahah Term Financing-i — Alleged Shariah non-compliance — Whether facility void — Effect of non-— Whether regulatory breach renders contract unenforceable compliance — Set-off — Fixed deposits — Acceleration upon default — Whether termination a condition precedent — Right of bank to combine accounts — Islamic Financial Services Act 2013 ss 28 & 281 — Section 24(e) Contracts Act 1950 1 case
Islamic finance — Bai' Bithaman Ajil (BBA) facility — Default — Ibra' (rebate) — Whether ibra' deductible in computation of debt upon default by bank — Distinction between early settlement by customer and termination upon default — Conclusive evidence clauses — Whether “manifest error” shown 1 case
Banker–customer relationship — Right to combine and consolidate accounts — Set-off clause operative post-liquidation — Seven-day notice requirement satisfied by contractual deeming provision — Proof of posting sufficient. 1 case
Misappropriation of Funds — Knowing Receipt — Constructive Knowledge — Negligence 1 case
Banker and customer — Joint account — Bank honoured forged cheque presented by surviving joint account holder (“survivor”) — Whether survivorship clause conferred survivor beneficial ownership of the money in joint account — Whether bank absolved its liability under joint account by adhering to survivorship clause — Whether payment made pursuant to survivorship clause by way of a forged cheque and in breach of s 24 of the Bills of Exchange Act 1949 constituted a valid discharge by bank — Whether bank had contractual relationship with respondents — Whether respondents had cause of action over joint account to which they were not parties — Bills of Exchange Act 1949 ss 24 and 73A Evidence Law — Proof — Admissibility — Admissibility of oral evidence — Whether oral evidence could be admitted to contradict written term of banking contract that joint account was personal account — Whether Court of Appeal erred in admitting oral evidence 1 case
Key Statutes
Contracts Act 1950 (Cap 136)
cited in 2 cases Federal Constitution
cited in 1 case Rules of Court 2012
cited in 1 case Companies Act 2016 (Cap 777)
cited in 1 case Evidence Act 1950 (Cap 56)
cited in 1 case Court Distribution
Key People & Firms
Top Judges
Raja Segaran a/l S.krishnan 3 Yusrin Faidz bin Yusoff 2 Rohana binti Yusuf 1 Ahmad bin Haji Maarop 1 Alizatul Khair binti Osman Khairuddin 1 Zaharah binti Ibrahim 1 Balia Yusof bin Haji Wahi 1 Muhammad Adam @ Edward bin Abdullah 1 Muhammad Adam bin Abdullah 1 Noradura binti Hamzah 1 John Lee Kien How @ Mohammad Johan Lee 1
Top Firms
Cases
ma-24fc-37-03-2025
AFFIN BANK BERHAD v GAINVEST BUILDERS (M) SDN. BHD.
25 June 2026
MYHC
ma-22ncc-7-04-2025
PUBLIC BANK BERHAD v 1. ) TAN PING HUANG EDWIN @ CHEN BINGHUANG 2. ) TAN JUNE TENG COLIN @ CHEN JUNTING 3. ) MDSA DEVELOPMENT SDN. BHD. (DAHULUNYA DIKENALI SEBAGAI FUYUU DEVELOPMENT SDN. BHD.)
24 June 2026
MYHC
ma-22m-35-10-2024
MAYBANK ISLAMIC BERHAD v 1. ) MW ASSEMBLER SDN BHD 2. ) ZULKIFLI BIN KASIM 3. ) RIDZUAN BIN MD SHUKOR
2 April 2026
MYHC
ja-22ncvc-46-04-2023
Ng Yok Kwang v CIMB BANK BERHAD
2 March 2026
MYHC
wa-22m-1024-08-2024
MAYBANK ISLAMIC BERHAD v 1. ) TRANSKON SDN. BHD. 2. ) YEE KIM MUN
25 November 2025
MYHC
wa-24mfc-657-07-2025
CIMB ISLAMIC BANK BERHAD v 1. ) ZAINUL AZIZAN BIN ZAINUL AZIZ 2. ) NOOR HANIS BINTI ZAINUL AZIZAN
5 November 2025
MYHC
wa-24ncc-68-02-2024
KELUARGA UTAMA SDN. BHD. (In Liquidation) v PUBLIC BANK BERHAD
26 October 2025
MYHC
wa-22ncvc-168-03-2020
RHB Investment Bank Berhad v 1. ) Chan Yew Mun 2. ) Grace Loo Shuk Yee
25 September 2024
MYHC
no-02f-133-11-2017w
Public Bank v 1. New Ace Digital Print Sdn Bhd 2. Cheah Yang Kiang
13 March 2019
MYFC