Skrine assisted CIMB Bank Berhad.
On 18 January 2021, the Court of Appeal dismissed a bankrupt’s appeal against a High Court decision that struck out his claim for, inter alia, damages of RM22,445,601.64 against CIMB Bank Berhad for delay in the auction of his property charged to the Bank.
The Appellant was a third party chargor for one of the lands charged as security for the banking facilities granted by the Bank to a borrower. Both the borrower and the Appellant defaulted in payments. In 1998, an Order for Sale was granted by the Land Administrator to sell the lands. The lands were successfully sold at an auction in 2011.
The Appellant, an undischarged bankrupt, commenced a suit at the High Court against the Bank. He alleged that the Bank had delayed the auction of the lands, resulting in a substantial increase in the amounts owing under the banking facilities due to accruing interest.
Whilst the Appellant allegedly applied for sanction of the DGI prior to filing the suit, the sanction was only given three months after the suit was filed. The High Court agreed with the Bank that the sanction from the DGI must be obtained before the filing of the suit.
The Bank was represented by Partner, Claudia Cheah (Picture) and Senior Associate, Aufa Radzi.
Law Firms: Skrine;
Clients: CIMB Bank Berhad;