[SUIT NO: 22-201-2008-III] BETWEEN TAN SENG LEONG CONSTRUCTION SDN BHD (COMPANY NO. 1!2-D" A COMPANY INCORPORATED AND REGISTERED IN MALAYSIA UNDER THE COMPANIES ACT# 1$% AND HA&ING ITS REGISTERED AND BUSINESS ADDRESS AT 18' 1 ST (LOOR LOT ) HUI SING GARDEN COMMERCIAL CENTRE $''0 KUCHING SARAWAK * PLAINTI(( AND (1" MASPOH SDN BHD (COMPANY NO. 12%)12-T" A COMPANY INCORPORATED AND REGISTERED IN MALAYSIA UNDER THE COMPANIES ACT# 1$% AND HA&ING ITS REGISTERED ADDRESS AT LOT 1!2 (1 ST (LOOR" SECTION %' KTLD +ALAN PADUNGAN $'100 KUCHING SARAWAK * 1 ST DE(ENDANT (2" POH SU KIANG (WN KP. )%111$-1'-0!$" C,O MASPOH SDN BHD LOT 1!2 (1 ST (LOOR" SECTION %' KTLD +ALAN PADUNGAN $'100 KUCHING SARAWAK * 2 ND DE(ENDANT BE(ORE THE HONOURABLE MR. +USTICE DATUK LINTON ALBERT IN OPEN COURT 1 CONTRACT: Guarantee - Liability of guarantor - Sum retained by 1 st defendant which had not been settled - Whether Letter of Acknowledgment of Debt cum Guarantee rendered 2 nd defendant liable to settle sum if 1 st defendant defaulted - Whether a mere promise to transfer personal property - Whether guarantee was without consideration - Whether 2 nd defendant signed Letter of Acknowledgment of Debt cum Guarantee under duress and coercion - Whether Letter of Acknowledgement of Debt cum Guarantee not binding on 2 nd defendant [P-./01/2234 5-./6 .7./041 189 2 0: :9290:.01 :/46/449: ;/18 5<414 1< =9 1.>9: ?0-944 .7@99:.] C.49(4" @929@@9: 1<: Allied Granite arble !ndustries Sdn "hd #$ %hin &oong 'oldings Sdn "hd ( )rs *2+++, - %L. /1 0refd1 L97/4-.1/<0 @929@@9: 1<: Contracts Act 1950, ss. 10, 14, 15, 79, 80 2 +UDGMENT The Pl ai nt i ff had successful l y coml et ed t he const ruct i on of ei !ht "l oc#s of 4$st orey semi $det ached aart ment s and 10 uni t s of si n!l e st or ey t er r ace houses for t he %efendant &hi ch &as ai d for "y t he %efendant e'cet t he sum of ()*14, 474, 00 r et ai ned "y t he %efendant for r el ease t o t he Pl ai nt i ff onl y aft er t he e'i r y of 12 mont hs aft er t he i ssuance of t he occuat i on er mi t s for t he aar t ment s and t he t er r ace hous es . The occuat i on er mi t s f or t he aar t ment s and t er r ace hous es &er e i s s ued on 7. 4. 2005. +y a ,et t er of Ac#no&l ed!ment of %e"t cum -uar ant ee dat ed 21. 12. 200. t he 2 n d %ef endant , as t he )ana!i n! %i r ect or of t he 1 s t %ef endant ac#no&l ed!ed t hat t he 1 s t %ef endant o&ed t he r et ent i on money t o t he Pl ai nt i f f and i n hi s er sonal caaci t y r omi sed t o ma#e !ood t he f ul l amount of t he r et ent i on money o&ed t o t he Pl ai nt i f f i n t he e/ent t hat t he 1 s t %ef endant coul d not ma#e f ul l ayment t o t he Pl ai nt i f f "y 20. 1. 2007. 0 n t he e/ent t he 1 s t %ef endant di d not ma#e t he ayment as a!r eed and t he Pl ai nt i f f commenced t hi s act i on on 17. 10. 2008. 1o much f or t he Pl ai nt i f f 2 s l eaded cl ai m. The t ri al of thi s act i on only concerned t he 2 n d %efendant "ecause 3 ud!ment a!ai nst t he 1 s t %efendant had al r eady "een o"t ai ned ri or t o t he commencement of t he t r i al . The 2 nd %efendant2s leaded defence &as that the ,etter of Ac#no&l ed!ment of %e"t cum -uar ant ee &as o"t ai ned "y dur ess and coer ci on and t her efor e /oi d and of no effect &hat soe/er "ut "efor e det er mi ni n! t hi s asect of t he case, i t i s t r i t e t hat t he Pl ai nt i f f mus t f i r s t es t a"l i s h i t s cl ai m a!ai ns t t he 2 n d %ef endant . * 4ence, the "urden is on the Plaintiff to ro/e that the ,etter of Ac#no&l ed!ment of %e"t cum -uar ant ee r ender s t he 2 n d %ef endant l i a"l e t o ay t he sum r et ai ned "y t he 1 s t %ef endant &hi ch had not "een set t l ed "y t he 1 s t %ef endant . The sol e &i t ness for t he Pl ai nt i ff &as i t s mana!i n! di r ect or , one Tan Ah )ee 5 Tan 1en! ,eon! &hose t est i mony essent i al l y r ei t er at es t he Pl ai nt i ff2 s l eaded cl ai m i ncl udi n! most i mor t ant l y t he r oduct i on of t he ,et t er of Ac#no&l ed!ment of %e"t cum -uar ant ee on &hi ch t he l i a"i l i t y of t he 2 n d %efendant hi n!es, &hi ch &as admi t t ed. 6or coml et eness i t i s er has ar or i at e t o r er oduce t he cont ent s of t he document &hi ch &as admi t t edl y si !ned "y t he 2 n d %efendant . 0 t st at es as fol l o&s7 8)9 P:4 1; <0 A=- 0 C7 4.1119$ 1*$ 5079 as mana!i n! di r ect or of )A1P:4 1%= +4%, i s admi t t ed )A1P:4 1%= +4% &as o&e TA=- 19=- ,9:=- C:=1T(;CT0 := 1%= +4% ()**0, 000. 00 as a r et ent i on amount . 0 as di r ect or of )A1P:4 1%= +4% r omi s e &i l l ma#e t he f ul l ayment t o TA=- 19=- ,9:=- C:=1T(;CT0 := 1%= +4%. 0 &i l l t r ans f er my er s onal r oer t y t o ma#e t he t ot al de"t t o TA= 19=- 9,:=- C:=1T(;CT0 := 1%= +4%>. 1ection 79 of the Contracts Act 1950 defines a contract of !uarantee as follo&s7 ABC<01@.51 <2 7?.@.01993# B4?@91C3# BD@/05/D.- :9=1<@3# .0: BC@9:/1<@3 A ?contract of !uarantee2 is a contract to erform the romise, or di s char !e t he l i a"i l i t y, of a t hi r d er s on i n cas e of hi s def aul t . The er s on &ho !i /es t he !uar ant ee i s cal l ed t he ? s ur et y2 @ t he er s on i n r es ect of &hi ch def aul t t he !uar ant ee i s !i /en i s cal l ed t he ? r i nci al de"t or 2 , and t he er s on t o &hom t he !uar ant ee i s !i /en i s cal l ed t he ? cr edi t or 2 . A !uar ant ee may "e ei t her or al or &r i t t en>. 4 0t i s at ent l y cl ear t hat t here i s not hi n! i n t he document t o su!!est t hat t he 2 n d %efendant &oul d erfor m or di schar!e t he l i a"i l i t y of t he 1 s t %efendant t o t he Pl ai nt i ff i n t he sum of ()*14, 474. 00 i f t he 1 s t %efendant defaul t s@ i t &as a mere romi se 2 t o t ransf er my persona1 propert y $ $ $ $ 3 a hr ase so i mr eci se as t o "e caa"l e of many di f f er ent meani n!s. 0 n addi t i on t he al l e!ed !uar ant ee i s &i t hout consi der at i on "y /i r t ue of 1ect i on 80 and i l l ust r at i on A cB t her eof of t he Cont r act s Act 1950. They ar e as f ol l o&s7 AC<04/:9@.1/<0 2<@ 7?.@.0199 Anyt hi n! done, or any romise made, for the "enefit of the rincial de"tor may "e a sufficient consideration to the surety for!i/in! the !uarantee. !LL4S56A5!)7S AaB C A"B C AcB A sells and deli/ers !oods to +. C after&ards, &ithout consideration, a!rees to ay for them in default of 8. The a!reement is /oid>. 4ence, t he Pl ai nt i f f has f ai l ed t o es t a"l i s he t he 2 n d %efendant 2s l i a"i l i t y for t he sum cl ai med and Dui t e aart from t hat 0 al so accet t he 2 n d %efendant 2 s t est i mony t hat he si !ned t he ,et t er of Ac#no&l ed!ment of %e"t cum -uar ant ee under dur ess and coer ci on "ecause t he fi r st ol i ce r eort l od!ed on 19. 1. 2007 A e'hi "i t %*E 1FB and t he 2 n d ol i ce r eor t l od!ed on 2*. 1. 2007 A e'hi "i t %*E 2FB "ot h essent i al l y al l uded t o t he dur ess and coer ci on he descr i "ed i n det ai l i n hi s t est i mony and ar e t her efor e su"st ant i al l y consi st ent &i t h each ot her . 4er e, as t he ,et t er of Ac#no&l ed!ement of %e"t cum -uar ant ee &as r ocur ed "y c o e r c i o n , i t s t a n d s t o r e a s o n t h a t i t d o e s n o t " i n d t h e 2 n d 5 %efendant Asee ALL!8D G6A7!58 A6"L8 !7D4S56!8S SD7 "'D #$ %'! 7 &))7G ')LD! 7GS SD7 "'D ( )6S E 2000F 5 C,G 71@ and, 19CT0 :=1 10, 14 and 15 C:=T(ACT1 ACT, 1950B . 0n t he ci rcumst ances and for t he reasons aforesai d t he Pl ai nt i ff2 s cl ai m a!ai nst t he 2 n d %efendant i s di smi ssed &i t h cost s t o "e t a'ed unl ess a!r eed. D.19: 1. A;-;1T 2010 (LINTON ALBERT# +" &or the plaintiff - Abang 'alit Abang alik9 :s Loke ;ing Goh ( <artners Ad#ocates <uchin! &or the 2 nd defendant - William Wang9 :s Sia Al#in Wong ( <artners Ad#ocates <uchin! .