KUALA LUMPUR (April 26): Malayan Banking Bhd (Maybank) has obtained a summary judgement at the High Court here against ACE Credit (M) Sdn Bhd, ACE Corporation (M) Sdn Bhd, and the company directors Datuk Choong Chee Meng and Chang Ai Nee, for defaulting on a RM46.47 million loan given to them by the bank.
The judgement, which was sighted by The Edge, was meted out by High Court judge Datuk Mohd Arief Emran Arifin on March 19.
A summary judgement is a judgement entered by a court without going to full trial.
According to the judgement, on Oct 23, 2019, Maybank had granted ACE Corporation 14 term-loans totalling RM46.47 million, which were secured by 14 corporate guarantees from ACE Credit and 14 letters of guarantee that were executed by Choong and Chang.
Subsequently, ACE Corporation failed to pay the monthly instalments under the loan agreement terms. The arrears as of June 15, 2023, stood at RM2 million.
The judgement noted that Maybank had sent several notices of demand to ACE Corporation. However, the company did not adhere to the demands and did not pay the sums required.
Subsequently, a notice of termination of facilities was given to ACE Corporation via Maybank’s solicitors. Maybank, through its solicitors, terminated the facility and demanded that the sum of RM43.7 million be paid in full to the bank.
ACE Corporation and the other defendants in this case did not deny not paying the sums due. However, they claimed that they were attempting to restructure the facility, and that allegedly Maybank had waived the right to recall the facility.
The defendants also said that they could not pay the sums, as their funds were frozen by a Mareva injunction imposed by a third party.
The judge did not agree with the defendants and said that they did not have a “bona fide” reason not to pay their instalments. Thus, a summary judgement should be entered against them.
“I have considered the issues and defences raised by the defendants, and I find that they have failed to show the existence of a bona fide defence to Maybank’s claim, and they have failed to show any valid reason why this suit should be determined after a trial. Summary judgement should therefore be entered against the defendants,” the judge said.
The judge said that the Mareva injunction was entered against ACE Credit, and therefore does not excuse ACE Corporation from its obligation to pay the sums due and fully to Maybank.
The judge then allowed Maybank’s claim of summary judgement with costs.