Oct 23 ruling on bid to restrain bank from closing Maritime Network accounts

Malay Mail reports that the Malaysian High Court has set October 23rd to rule on a lawsuit filed by Maritime Network Sdn Bhd against RHB Bank Berhad. The case seeks to prevent RHB Bank from closing two of the company's long-standing accounts while waiting for a full hearing of the injunction request. Senior Advocate Elesabet Paya Wan made the decision after hearing arguments from both sides.

Maritime Network's lawyer argued that the bank failed to demonstrate any breach of terms or requirements that would warrant closing the accounts, emphasizing the bank's fiduciary duty and duty of care towards its customers. However, RHB Bank's lawyer denied any fiduciary or duty of care relationship between the bank and the shipping company, stating that the relationship between banks and their customers is one of creditor and debtor.

In October last year, the High Court issued a temporary injunction to stop RHB Bank from closing the accounts while waiting for the full hearing of the injunction request. According to court documents, Maritime Network opened two accounts with RHB Bank since September 23, 2005, including both current and general accounts. However, on October 6, the company received a notice of dissolution dated October 1, informing the bank of its intention to close both accounts and terminate all services within 14 days.

The bank is alleged to have done so due to alleged breaches of internal policies and guidelines, but did not specify the specific policies or guidelines allegedly violated. The company also claimed there was an ongoing dispute between the parties regarding the accounts, which was previously taken to the High Court through a document lodgment application, but dismissed on July 2 of last year.

The company then filed an appeal with the High Court Appeal, which, in December last year, allowed its appeal against the decision to dismiss its application for summary judgment. Following that, the Appeal Court directed RHB Bank to present Minimum Due Diligence (MDD) guidelines regarding foreign exchange business relationships to the company within 45 days.

Maritime Network subsequently argued that the bank's claims caused the company to face insolvency and denied the chance to defend itself, alleging misuse of power that undermined its legal rights. The company also claimed the bank's actions indicated a desire to stifle rather than protect its legitimate interests in banking affairs.