CASE OF THE WEEK

SUMATEC ENGINEERING AND CONSTRUCTION SDN BHD v. MALAYSIAN REFINING COMPANY SDN BHD
FEDERAL COURT, PUTRAJAYA
ARIFIN ZAKARIA CJ, HASHIM YUSOFF FCJ, ABDULL HAMID EMBONG FCJ
[CIVIL APPEAL NO: 02 (i)-27-2011 (W)]
29 FEBRUARY 2012

CONTRACT: Performance bonds - Beneficiary's right - Call on bond - Whether unconscionable conduct entitled court to restrain beneficiary from calling on or demanding and receiving monies under bank guarantee or performance bond - Court to consider claim on case to case basis - Whether unconscionability proven

BANKING: Guarantee - Bank guarantee - Demand on guarantee - Whether unconscionable conduct entitled court to restrain beneficiary from calling on or demanding and receiving monies under bank guarantee or performance bond - Court to consider claim on case to case basis - Whether unconscionability proven

CIVIL PROCEDURE: Injunction - Demand for payment of bank guarantee - Injunction to restrain respondent from calling upon bank guarantee - Whether unconscionability proven to maintain injunction granted - Whether there were reasons to justify interference with appellate judges' exercise of discretion to set aside injunction - Balance of convenience - Whether favoured refusal of injunction