Malayan Banking Bhd v Measurex Engineering: Summary Judgment Appeal on Loan Contract Guarantee
Malayan Banking Bhd sued Measurex Engineering Pte Ltd and Measurex Corporation Bhd in the High Court of Singapore on 25 July 2001, regarding a loan contract where Measurex was the guarantor. The Bank terminated the contract and sought outstanding sums. Measurex appealed against the Deputy Registrar's decision granting summary judgment to the Bank. The court allowed the appeal in part, reducing the judgment sums to US$3,100,937.72 and $1,957,756.05 plus interest, with unconditional leave to defend in respect of US$1,316.99 and $32,555.62.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal allowed in part
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding summary judgment on a loan contract guarantee. The court allowed the appeal in part, reducing the judgment sums.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Malayan Banking Bhd | Plaintiff | Corporation | Judgment for Plaintiff in part | Partial | |
| Measurex Engineering Pte Ltd | Defendant | Corporation | |||
| Measurex Corporation Bhd | Defendant, Respondent | Corporation | Appeal allowed in part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- The Bank's action is based on a loan contract dated 14 May 1997.
- Measurex is the guarantor of the loan contract.
- The Bank terminated the contract on 6 April 2000.
- The Bank claimed for compound interest, which Measurex disputed.
- The Deputy Registrar granted summary judgment to the Bank.
- Measurex appealed against the Deputy Registrar's decision.
5. Formal Citations
- Malayan Banking Bhd v Measurex Engineering Pte Ltd and Another, Suit 412/2000, RA 111/2001, [2001] SGHC 200
6. Timeline
| Date | Event |
|---|---|
| Loan contract signed | |
| Contract terminated | |
| Letters of demand issued by the Bank | |
| Writ taken out | |
| First hearing of appeal | |
| Adjourned hearing | |
| Decision date |
7. Legal Issues
- Compound Interest
- Outcome: The court granted unconditional leave to defend in respect of the compound interest component of the sums claimed.
- Category: Substantive
- Summary Judgment
- Outcome: The court allowed the appeal in part, reducing the judgment sums and granting unconditional leave to defend on certain amounts.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Guarantee
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ngai Heng Book Binder Pte Ltd v Syntax Computer Pte Ltd | High Court | Yes | [1988] SLR 36 | Singapore | Cited to support the argument that leave to defend ought to be given when the sum is disputed. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Loan Contract
- Guarantee
- Summary Judgment
- Compound Interest
- Unconditional Leave to Defend
15.2 Keywords
- Loan
- Guarantee
- Summary Judgment
- Compound Interest
- Appeal
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Guarantee | 80 |
| Contract Law | 75 |
| Summary Judgement | 70 |
| Banking and Finance | 60 |
16. Subjects
- Banking
- Finance
- Contract Law