The court affirmed that summary judgment is appropriate when defendants fail to raise triable issues and acknowledge their obligations under signed agreements.

Ong Chee Kwan J:

Introduction

[1] Enclosure 10 is the Plaintiff's application for summary judgment for banking facilities granted to the First Defendant and guaranteed by the Second, Third and Fourth Defendants.

[2] After hearing submissions and upon perusal of all relevant cause papers, this Court was satisfied that the Defendants have failed to raise any triable issues to merits the action going for trial. The submissions by the Defendants were unsupported by any documentary evidence at all and in fact contrary to the documents.

Background Facts

The Parties

[3] The First Defendant is a private limited company established under the Companies Act 2016 having its registered and business address at No. 9.07, Level 9, Amcorp Tower B, Amcorp Trade Centre, 18 Barat 46050 Petaling Jaya, Selangor, and another known address for service is at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur.

[4] The Second Defendant is the director of the First Defendant and is the Guarantor for the First Defendant, with a known address for service at Unit 25, Sunway Kiara Hills, No 1, Jalan 32/70A, TamanSri Hartamas, 50480 Kuala Lumpur, Federal Territory of Kuala Lumpur.

[5] The Third Defendant, is the director of the First Defendant and is also the Guarantor for the First Defendant, with a known address for service at 25, Block Cempaka, Desa 288, 68000 Ampang, Selangor Darul Ehsan.

[6] The Fourth Defendant is the director of the First Defendant and is also the Guarantor for the First Defendant, with a known address for service at No 1, Bayu Segar 2, Taman Bayu Segar, 56100 Cheras, Federal Territory of Kuala Lumpur.

The Facilities

[7] At the request of the First Defendant, the Plaintiff approved a Term Loan Facility 1 amounting to RM15,000,000.00 ("TermLoan Facility 1") to part finance up to 88.23% or RM15,000,000.00 of the purchase price of RM17,000,000.00 of a single-storey detached factory with adouble-storey office annexed known as Lot 4, Jalan Sasa 25/146, Taman Sri Muda, Seksyen 25, Shah Alam, 40400 Shah Alam, Selangor, through the Plaintiff's Letter of Offer dated 9 December 2022 ("the Letter of Offer") subject to the terms and conditions stipulated therein.

[8] The salient terms and conditions in the Letter of Offer for Term Loan Facility 1, inter alia, are as follows:

(i) the First Defendant shall pay interest atthe Plaintiff's Base Lending Rate ("BLR") minus 1.85% per annum, calculated on amonthly rest basis, and the Plaintiff at its discretion may prescribe other rates at any time and from time to time; and

(ii) the First Defendant shall pay the Term Loan Facility 1 amounting to RM116,366.00 per month, inclusive of interest, for aperiod of one hundred and eighty (180) months until full settlement.

[9] In line with the Letter of Offer, the Plaintiff has also approved Term Loan Facility 2 amounting to RM750,000.00 ("Term LoanFacility 2"), primarily, for the following purposes:

(i) to finance Credit Level Term Assurance(CLTA) with Money Back Protector ("MBP") of total premium not exceeding RM325,000.00 to cover the insured, the Second Defendant for ten (10) years and insurance policy is to be assigned to the Plaintiff;

(ii) to finance Credit Level Term Assurance(CLTA) with Money Back Protector (MBP) of total premium not exceeding RM325,000.00 to cover the insured, the Third Defendant for ten (10) years and insurance policy is to be assigned to the Plaintiff; and

(iii) to finance Credit Level Term Assurance(CLTA) with Money Back Protector (MBP) of total premium not exceeding RM100,000.00 to cover the insured, the Fourth Defendant for ten (10) years and insurance policy is to be assigned to the Plaintiff.

[10] The salient terms and conditions set forth in the Letter of Offer for Term Loan Facility 2 are as follows:

(i) the First Defendant shall pay interest atthe Plaintiff's BLR plus 0.00% per annum, calculated on a monthly rest basis, and the Plaintiff at its discretion may prescribe other rates at any time andfrom time to time;

(i