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2000 MarsdenLR 210

HIGH COURT MALAYA KUALA LUMPUR
BANQUE NASIONALE DE PARIS – Appellant
Versus
WUAN SWEE MAY & ANOR – Respondent


Petitioner Advocates:Endrian Hii ,Respondent Advocate: Manyit Singh

Table of Content
1. overview of loan transaction and its implications. (Para 1 , 2 , 6 , 7)
2. court's observations on public policy considerations. (Para 3 , 4 , 14 , 20)
3. discussion on legality under bafia and eca. (Para 5 , 9 , 17 , 34)
4. determination of the legality of the transaction and its consequences. (Para 16 , 26 , 40 , 48)
Abdul Hamid Mohamad J:

[1] This is an application by the defendant for an order that the order of this court dated 5 January 2000 registering the judgment of the Singapore High court dated 20 August 1999 against the defendant be set aside.

[2] The first defendant had obtained a loan from the plaintiff bank, a bank in Singapore. The second defendant stood as guarantor for the debt. The plaintiff filed two suits in Singapore. After a full trial, judgment was given in the sum of RM1,375,666.85 with further interest and costs. Costs were taxed and reviewed and the amount awarded is equivalent to RM1,357,550.

[3] The whole case turns on one main issue ie whether the enforcement of the judgment would be contrary to public policy in Malaysia.

[4] Section 5 , of the Reciprocal Enforcement of Judgments Act 1958 ("REJA 1958") provides:

5(1) On an application in that

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