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2011 MarsdenLR 1267

HIGH COURT, KUALA LUMPUR
MALAYAN BANKING BERHAD – Appellant
Versus
TXN-COAT (PUCHONG) SDN BHD & ORS – Respondent


JUDGMENT

1. The Plaintiff's Claim

1.1. From time to time, commencing from 5/8/04 the Plaintiff granted Term Loan and Overdraft facilities to the 1st Defendant that were guaranteed by the 2nd, 3rd and 4th Defendants.

1.2. The 2nd Defendant executed a Corporate Guarantee dated 26/9/07 for RM9 million while the 3rd and 4th Defendants executed joint and several guarantees dated 6/5/05 for RM5.27 million and 12/9/07 for RM9 million to guarantee the banking facilities granted to the 1st Defendant.

1.3. As security, the 1st Defendant inter alia entered into 5 Facility Agreements namely:-

(a) Term Loan (TL) facility for RM5,270,000.00 as shown in the Facility Agreement dated 6/5/05 [Bundle B1 - pages 25 - 78] (hereinafter referred as "FA(1)");

(b) Overdraft (OD), Letter of Credit (LC), Trust Receipt (TR) and Banker's Acceptance (BA) facilities for a total sum of RM3,000,000.00 as shown in the Facility Agreement dated 6/5/05 [Bundle B1 - pages 79 - 123] (hereinafter referred as "FA(2)"). The OD limit was up to RM1,000,000.00;

(c) LC, TR and BA facilities for RM1,000,000.00 as shown in the Facility Agreement dated 6/5/05 [Bundle B1 - pages 125 - 166] (hereinafter referred as "FA(3)");

(d) LC, TR and

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