JUDGMENT

Azizul Azmi Adnan JCA:

Introduction

[1] CIMB Bank Berhad, the appellant, appealed to the High Court pursuant to s 39 of the Stamp Act 1949 in connection with the determination by the stamp office to impose ad valorem duty on a settlement agreement that had been entered into between the appellant and its client, a publicly listed company. This settlement agreement recorded the terms by which the parties had agreed to restructure the obligations of the appellant's client under an ISDA Master Agreement entered between the parties.

[2] ISDA stands for the International Swaps and Derivatives Association. It is an association of banks and other capital market intermediaries that participate in over-the-counter derivatives transactions. The ISDA Master Agreement and the confirmations issued thereunder are a standardised form of documentation used to govern derivatives such as forward contracts, option contracts and swaps (such as interest rate and cross-currency swaps).

[3] The ISDA Master Agreement provides an overarching framework to regulate the rights and obligations of parties, and incorporates by reference standardised terms such as definitions, credit support documents and pr