Thursday, April 18, 2024
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Local bank awarded over BND8M in debt recovery

The Court of Appeal on June 15 granted a local bank the recovery of over BND8 million in outstanding debts owed by a local company. Baiduri Bank, the appellant and plaintiff in the case, had extended the sum to Jasra Harrisons Sdn Bhd and its directors for business purposes.

The dispute initially unfolded in the High Court, where the Judicial Commissioner overturned a decision made by a Senior Registrar in favour of Baiduri Bank. The bank had filed a claim against Jasra Harrisons and its directors, seeking to recover the outstanding amount of BND8,688,840.50 after the company defaulted on its repayment obligations.

The respondents argued that a tentative agreement was reached during a meeting on February 26, 2018, between the bank’s representatives and Jasra Harrisons‘ directors.

According to the respondents, the bank had agreed to continue providing financial facilities and meet their financial requirements.

They contested that there was no record of the bank imposing a capital input as a condition for forbearance and further assistance.

However, Court of Appeal Justice Conrad Seagroatt, along with Chief Justice Dato Seri Paduka Steven Chong and Justice Michael Peter Burrell, concluded that the conditions set by the bank were not fulfilled.

In its ruling, the Court of Appeal determined that no valid defence had been raised, and no alternative options were available. Consequently, the Court restored the decision of the Senior Registrar and granted summary judgement in favour of the appellant, Baiduri Bank.

Representing the appellant were counsels Nava Palaniandy and Abdul Muqtadir Suhaimei from Messrs AIP Law, while Mohd Noorsuhaimy bin Haji Kasmany and Juanita binti Dato Paduka Haji Jemat from Messrs Fathan and Co represented the respondents. – Fadley Faisal