DAMAI FREIGHT (M) SDN BHD vs AFFIN BANK BERHAD

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2015 MarsdenLR 2276

FEDERAL COURT PUTRAJAYA
DAMAI FREIGHT (M) SDN BHD – Appellant
Versus
AFFIN BANK BERHAD – Respondent

Table of Content
1. land title issuance does not preclude assignment. (Para 1 , 2 , 6)
2. assignment creates lender's rights. (Para 3 , 4 , 5 , 11)
3. bank's sale rights under laca upheld. (Para 10 , 12 , 18)
4. appeal dismissed; lender retained rights. (Para 15 , 45)
5. court confirms contractual legitimacy. (Para 19 , 20 , 27)

Abdull Hamid Embong FCJ:

[1] The subject matter of the present appeal concerns a piece of land known as Lot No 2, Jalan Lingkaran 1, Fasa 11A, Bhg 2, Peringkat 1, Kawasan Perusahaan Selat Kelang, Pelabuhan Kelang, Selangor ("the land") which was to be alienated by the State Government of Selangor to Perbandaran Kemajuan Negeri Selangor ("PKNS").

[2] Pending the issue of a document of title to the land, PKNS entered into an agreement to lease dated 28 November 1988 ("the principal agreement") with the appellant thereby granting a lease over the land to the appellant for a period of thirty years commencing from 28 December 1988 and expiring on 28 December 2018 ("the lease").

[3] In 1990, the appellant obtained loans of RM1.2 million and RM750,000.00 from Bank Buruh (Malaysia) Berhad ("BBMB").

[4] As security for the repayment of the loans, a Loan Agreement Cum Assignme

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2015 MarsdenLR 2276

FEDERAL COURT PUTRAJAYADAMAI FREIGHT (M) SDN BHD – AppellantVersusAFFIN BANK BERHAD – Respondent

Cases Referred (6)

FEDERAL COURT PUTRAJAYA
DAMAI FREIGHT (M) SDN BHD – Appellant
Versus
AFFIN BANK BERHAD – Respondent