29/09/2023
Case Review @27.9.20223 upon full trial
We are thrilled that the JB session Court allowed our client's claim i. e
("the Plaintif") against a Company and its Directors ("the Defendants") for a friendly loan amounting of RM888, 000.00 advanced by our client to the Defendants with cost .
The significance in this case is that the friendly loan entered between the parties has no written agreement and the loan amount were all transacted via cash to the Defendants by the Plaintif between the year of 2016 and year 2017.The Defendants in their Defence alleged the Defendants only received loan sum of RM600, 000.00 and that the amount inclusive of interest amounting of RM801, 000.00 was duly returned to the Plaintif. However the Defendants failed to adduce Vouchers to support the repayment for the sum of
RM 810,000.00 .
The trial Court relied on the supporting documents adduced by the Plaintif which is the 7 post dated cheques amounting of
RM 888,000.00 issued by the Company and duly authorised by the directors, in consideration of the loan advanced by the Plaintiff to the Defendants in order to determine the loan amount.Further, the post dated cheques provided by the Defendants cannot be cleared to settle the loan payment as the Company has insufficient cash flow.During the trial, the directors admitted that the cheques were issued in favour of the Plaintiff to settle the repayment of the loan sum and the Company had financial constraints.The Court also took into account the failure of the Defendants to adduce the vouchers for each transactions amounting of
RM 810,000,00 as the payment amount also reclected that the parties might have entered into other business dealings.
Again, I wish to stressed that it's always best to have a written agreement for all business dealings to avoid any pitfalls .
Anyway, it's a good week for us in Law Chamber of P. suriajothi . We believe that every case is tagged along with a lesson be it for the solicitors and even for the litigation parties.
on with other work written agreement