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2011 MarsdenLR 4092
HIGH COURT KUALA LUMPUR
KL KRIS FOOD INDUSTRIES SDN BHD – Appellant
Versus
BANK ISLAM MALAYSIA BERHAD – Respondent
[Guaman No: 22A-651 - 2011]
An action to strike out pleadings is granted when no reasonable cause of action is disclosed; a valid contract requires acceptance and execution of terms.
Headnote:(A) High Court Rules, 1980 - Order 18 Rule 19 - Striking out of pleadings - Application to strike out the Plaintiff's claim granted as it disclosed no reasonable cause of action and was deemed frivolous or vexatious - No viable claim against Bank Islam regarding the alleged termination of the facility agreement was established. (Paras 1, 12, 26)
(B) Contract Law - The nature of the agreement and its implications were addressed, establishing that without proper execution and acceptance, the Plaintiff could not claim a contract had been formed. (Paras 18, 24, 25)
(C) Banking Law - Obligations regarding facility disbursement were clarified, and the bank’s right to suspend actions was upheld based on contract terms and compliance failures by the Plaintiff. (Paras 22, 26)
Facts of the case:
The Plaintiff, a customer of Bank Islam, contested the bank's refusal to disburse funds under an alleged facility agreement. Dispute arose over conflicting letters of offer, leading to significant losses claimed by the Plaintiff. (Paras 4-9)
Findings of Court:
The claim was found to be unsustainable as the Plaintiff could not prove the formation of a valid contract or that the bank acted improperly in suspending the facility. The application was granted, dismissing the claim with costs. (Paras 15, 27)
Issues: Whether the Plaintiff had established a valid cause of action and if the bank's actions regarding facility disbursement were justified under the agreement. (Paras 14, 24)
Ratio Decidendi: The court emphasized that claims must disclose a cause of action to proceed, and in this case, the Plaintiff failed to demonstrate the validity of the agreement or the bank's obligation to disburse funds without compliance. (Paras 12, 22)
Result: Application granted with costs.
| Table of Content |
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| 1. application to strike out based on no cause of action. (Para 1) |
Introduction
[1] This was an application by the Defendant ("Bank Islam") to strike out the Plaintiffs claim under O 18 r 19 (1)(a), (b), (c) and (d) of the Rules of the High Court, 1980 on the grounds that it discloses no reasonable causes of action, it is scandalous, frivolous or vexatious, it may prejudice, embarrass or delay the fair trial of the case and it is an abuse of the process of the Court.
