The court affirmed that the investment agreements are enforceable and not illegal moneylending, asserting the guarantors' obligations to pay are binding upon the first defendant's default.

A. Introduction

[1] This is one of many cases where the Defendants have been sued concerning the Investment Agreements entered between various individuals, the First Defendant and in some cases allegedly guaranteed by the Second and Third Defendants.

B. Background Facts

[2] The Plaintiff and the First Defendant did enter into the following agreements:

[3] Material terms of the said Investment Agreements are as follows:

Section 1.01 Definitions

"Events of Default"

Means any of those events or state-of affairs specified in s 8.01 hereof;

"Investment Date"

Means the date which the Company received the whole of the Investment Sum from the Investor;

"Investment Redemption Sum"

Means the Investment Sum and the outstanding Investment Target Return, if any, payable to the Investor upon Maturity Date;

"Investment Sum"

Means Ringgit Malaysia 20,000,000;

"Investment Target Return"

Means the investment target return of Eighteen percent (18 %) per annum on the Investment Sum calculated on a daily basis from the Investment Date until the Maturity Date;

"Maturity Date"

Means a day falling immediately before the fifth (5th) anniversary from the Investment Date or such other date as may be mutually agreed by the parties provided that such other date shall be after the third (3rd) anniversary from the Investment Date;

Section 2 .01 The Investment and No Solicitation

A. In consideration of and subject always to the Investor paving the Investment Sum to the Company in the manner as stipulated in s 2.02 below, the Company agrees to pay the Investor the Investment Target Return within fourteen (14) Business Days from December 31 during the Tenure of the Investment, subject to the terms and conditions herein contained in this Agreement.

B. For the avoidance of doubt, the Investor acknowledges and agrees that at no time did the Company solicit the Investment from the Investor and the Investor is entering into this Agreement by its own accord and willingness without any promotion or solicitation by the Company.

Section 2 .03 Returns of the Investment

A. In consideration of the Investor paying the Investment Sum, the Company hereby agreeste to pay to the Investor the Investment Redemption Sum aturity Date.

B. Where payment is due to be made pursuant to the provisions of this Agreement hereof on a day which is not Business Day, the due date for such payment shall be extended to the next following Business Day provided that if the ne)t following Business Day falls in another calendar month such payment should be effected bn the Business Day preceding the due date of such payment.

Section 4.03

The Investor further agrees, represents and warrants to, apd agrees with, the Company, as follows:

A. It is fully aware the Investment involves a substantial degree risk as the return of the Investor is very much dependent on the performance of the Company's investment;

B. It is fully aware that any projections or predictions that may have been made available to Investor are based on estimates, assumptions and forecasts which may prove to be incorrect; and no assurance is given that actual results will correspond with the results contemplated by the various projections;

C. That the Investorfinancially responsible, able to rpeet acknowledges that this Investment will be long-term and is by nature, speculative;

D. That the Investor has received and carefully read and is familiar with the terms of this Agreement, and all other documents in connection