Malayan Banking Berhad v Measurex Engineering: Guarantor's Liability for Debt
Malayan Banking Berhad sued Measurex Engineering Pte Ltd and Measurex Corporation Berhad in the High Court of Singapore, seeking to recover sums due under credit facilities guaranteed by Measurex Corporation Berhad. The Assistant Registrar assessed the principal and simple interest payable. Measurex Corporation Berhad appealed the Assistant Registrar's order, arguing against a 1.5% spread in the revolving credit facility and challenging the plaintiff's right to pursue further claims for cost of funds. The High Court dismissed the appeal, upholding the assessment and clarifying the scope of the remaining claims.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Second defendant's appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Malayan Banking Berhad sued Measurex Engineering and Measurex Corporation Berhad for debt. The court addressed the guarantor's liability and interest calculation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Malayan Banking Berhad | Plaintiff, Respondent | Corporation | Judgment for Plaintiff, Judgment for Plaintiff, Judgment for Plaintiff, Judgment for Plaintiff | Won, Won, Won, Won | Herman Jeremiah, Joshua Wong |
| Measurex Engineering Pte Ltd | Defendant | Corporation | |||
| Measurex Corporation Berhad | Appellant, Second Defendant | Corporation | Appeal Dismissed | Lost | Johnny Cheo |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Johnny Cheo | Cheo Yeoh & Associates LLC |
| Herman Jeremiah | Helen Yeo & Partners |
| Joshua Wong | Helen Yeo & Partners |
4. Facts
- Malayan Banking Berhad granted credit facilities to Measurex Engineering Pte Ltd.
- Measurex Corporation Berhad acted as guarantor for the credit facilities.
- Measurex Engineering Pte Ltd defaulted on the credit facilities.
- Malayan Banking Berhad sued Measurex Corporation Berhad to recover the outstanding debt.
- The Assistant Registrar assessed the principal sums and simple interest owing.
- The facility letter did not specifically mention the 1.5% spread.
- The borrower agreed to an all-in interest rate, which included the 1.5% spread.
5. Formal Citations
- Malayan Banking Berhad v Measurex Engineering Pte Ltd and Another, Suit 412/2000/V, RA 112/2002, [2002] SGHC 192
6. Timeline
| Date | Event |
|---|---|
| Lawsuit filed (Suit 412/2000/V) | |
| Interest calculation began | |
| Assistant Registrar ordered final judgment | |
| Judgment sums reduced | |
| High Court dismissed the appeal |
7. Legal Issues
- Liability of Guarantor
- Outcome: The court upheld the guarantor's liability for the debt.
- Category: Substantive
- Interest Calculation
- Outcome: The court determined that the 1.5% spread was a component of the agreed interest rates.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Guarantee
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
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
- Revolving Credit Facility
- Overdraft Facility
- Guarantee
- Interest Rate
- Cost of Funds
- Spread
- Simple Interest
- All-in Interest
15.2 Keywords
- banking
- guarantee
- credit facilities
- interest
- debt
- singapore
- high court
16. Subjects
- Banking
- Finance
- Debt Recovery
17. Areas of Law
- Banking Law
- Contract Law
- Civil Procedure