Mahkamah benar rayuan syarikat pembiayaan dalam pertikaian RM21.1 juta

Mahkamah Rayuan has ruled that SA Puncak Management Sdn Bhd was involved in financing liabilities, not the practice of lending money without a license. Putrajaya: The Court of Appeal determined that financing was legal and not the act of lending money without a license, enabling a financing company to recover RM21.1 million from an oil and gas company.

The three-judge panel, comprising Judge Wong Kian Kheong, Judge Ismail Brahim, and Judge Shahnaz Sulaiman, stated that the Moneylenders Act 1951 governs the business of lending money and not every party engaging in financing activities. The panel allowed SAPM's appeal and dismissed KLP's counter-appeal. SAPM provides two financing facilities to KLP to fund the Kawasari raw gas project and other working capital needs.

These include an Islamic factoring facility, which allows SAPM to purchase KLP's unpaid invoices and an Islamic pre-factoring facility, which enables SAPM to fund KLP's future bills and make regular payments to suppliers, subcontractors, employees, and creditors. KLP then challenged the matter, alleging that the pre-factoring facility is actually lending money and SAPM requires a license under Section 5(1) of the Moneylenders Act.

It argued that the related financing agreement cannot be enforced under Section 15 of the Act. The High Court partially agreed with KLP, ruling that the normal factoring facility is a genuine factoring but the pre-factoring facility is lending money. It found that the agreement related to the pre-factoring facility cannot be enforced, even though SAPM can recover approximately RM9.44 million in principal amount.

In the written judgment, Judge Wong said the High Court erred when considering whether the matter was the act of lending money. He said the real issue was whether SAPM was conducting a moneylending business. The Court of Appeal found that SAPM was involved in financing liabilities and the pre-factoring facility was given as part of its normal business operations.

The Court also ruled that any agreement related to the total amount of liabilities and received payments in the future is not prohibited under the Moneylenders Act. Regardless of the circumstances, the Court exempted SAPM from the act under the 2005 exemption order applicable to factoring businesses. The Court then overruled the High Court's decision and ordered KLP to pay SAPM RM21,122,459.02, including the principal and interest payments up to 24 October 2025.

KLP also had to pay RM50,000 as court costs to SAPM at the High Court and the Court of Appeal, and an additional RM50,000 as KLP's appeal costs. Judge Wong also stated that Malaysia should not lag behind in allowing financing of liabilities. Otherwise, he said, Malaysian companies will have to obtain such financing from abroad. He said the Court should uphold the healthy financing business unless there is clear evidence that it is prohibited by law.

Justices Yudistra Darma Dorai, Melody Tham, and RS Balasubramaniam represented SAPM, while Mak Lin Kum, Layyin Teh Hassan, and Sean Low represented KLP.