Amarjeet Singh Serjit Singh J:

Introduction

[1] On 6 November 2023, I dismissed the originating summons filed by the plaintiff, Nike Global Trading BV, Singapore Branch against the assessment of stamp duty (ad valorem duty) chargeable in respect of a Novation Agreement dated 17 December 2021 ("the Novation Agreement"). The plaintiff has appealed against the assessment under s 39(1) of the Stamp Act 1949 .

[2] Hereinafter, all sections or schedules referred to in this judgment refer to the Stamp Act 1949 .

Background Facts

[3] On 1 May 2021, Nike European Operations Netherlands ("the original lender") and Nike Sales (Malaysia) Sdn Bhd ('the borrower') entered into a loan agreement amounting to RM41,257,000.00. The loan agreement was assessed and stamped under Item 27(a) of the First Schedule. The loan has been fully disbursed.

[4] Subsequently, the original lender and the borrower entered into a Novation Agreement with the plaintiff whereby the Original lender transferred the debt amounting to RM41,257,000.00 to the plaintiff.

[5] The Novation Agreement was presented to the defendant, Collector of Stamp Duties ("the Collector"), for adjudication on 21 January 2022. The Collecto