PUTRAJAYA: A Special Court, set up to hear cases involving members of the royalty, sat for the first time to hear witnesses in a civil suit brought by a bank against a member of the Negri Sembilan royal house for allegedly failing to pay the bank a sum of US$1mil (RM3.24mil).
The member of the royalty, who was named as the defendant in the suit, has countersued the bank concerned, Standard Chartered Bank Malaysia Berhad (SCBMB), and sought a declaration that the bank was not entitled in law to uplift his fixed deposit to settle the US$1mil he was to pay the bank.
The hearing is before Chief Justice Tun Abdul Hamid Mohamad, Chief Judge of Malaya Tan Sri Alaudin Mohd Sheriff, Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum, and Federal Court judges Datuk Arifin Zakaria and Datuk Zulkefli Ahmad Makinudin.
The suit arose after the member of the royalty had on or about Feb 12, 1999, established through SCBMB a standby letter of credit (SBLC) valued at US$1mil made in favour of the Connecticut Bank of Commerce (CBC) in the United States for credit facilities to be extended by the latter to a US company called Texas Encore LLC (TEC).
The bank is suing the defendant after he had failed to undertake the express terms of the Documentary Credit Application (DCA).In the statement of claim, the bank said the defendant in the DCA had undertaken to indemnify the plaintiff (the bank) against all losses, costs, damages, expenses and demands which it might incur or sustain from the issuance or establishment of the credit. – Bernama.
The member of the royalty, who was named as the defendant in the suit, has countersued the bank concerned, Standard Chartered Bank Malaysia Berhad (SCBMB), and sought a declaration that the bank was not entitled in law to uplift his fixed deposit to settle the US$1mil he was to pay the bank.
The hearing is before Chief Justice Tun Abdul Hamid Mohamad, Chief Judge of Malaya Tan Sri Alaudin Mohd Sheriff, Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum, and Federal Court judges Datuk Arifin Zakaria and Datuk Zulkefli Ahmad Makinudin.
The suit arose after the member of the royalty had on or about Feb 12, 1999, established through SCBMB a standby letter of credit (SBLC) valued at US$1mil made in favour of the Connecticut Bank of Commerce (CBC) in the United States for credit facilities to be extended by the latter to a US company called Texas Encore LLC (TEC).
The bank is suing the defendant after he had failed to undertake the express terms of the Documentary Credit Application (DCA).In the statement of claim, the bank said the defendant in the DCA had undertaken to indemnify the plaintiff (the bank) against all losses, costs, damages, expenses and demands which it might incur or sustain from the issuance or establishment of the credit. – Bernama.
