Borrowers’ appeal dismissed, court orders repayment of RM50mil loan
The Court of Appeal has upheld the validity of two moneylending transactions collectively worth RM50 million, ruling that they remain enforceable despite technical non-compliance with the Moneylenders Act 1955.
Justice Lim Chong Fong, delivering the court’s unanimous verdict, said the contravention was not serious, noting also that lender Ace Credit (M) Sdn Bhd had not attempted to conceal the purpose of the loan agreements.
In dismissing the appeals brought by Pioneer Conglomerate Sdn Bhd and KBH Marine Industry Sdn Bhd, Lim said:
“There is no substantive illegality. Moreover, we find that the agreement has been wholly performed by Ace Credit, but Pioneer has defaulted in repaying the loan, particularly the principal sum.”
In a written judgment released recently, the judge said that the…
