Malaysian Refining Company Sdn Bhd v Sumatec Engineering and Construction Sdn Bhd [2011]

Malaysian Refining Company Sdn Bhd v Sumatec Engineering and Construction Sdn Bhd [2011]

The Appeal Court held that an injunction preventing a call on a performance guarantee was not based on the fact that the plaintiff had failed to demonstrate unconscionablity on the part of the Appellant. The Court did however make it clear that unconscionability is demonstrated the Malaysian Courts may issue such an injunction preventing a party making a call on an on-demand bond. Previously fraud was the only valid reason for the courts issuing such an injunction.

Malaysian Refining Company Sdn Bhd v Sumatec Engineering and Construction Sdn Bhd [2011]