KUALA LUMPUR: The Court of Appeal dismissed yesterday an appeal by businessman Datuk Soh Chee Wen against an order for a RM2.96mil summary judgment awarded by the High Court to CIMB Securities Sdn Bhd about five years ago.
Court of Appeal judges Justices Dennis Ong, Alauddin Mohd Sheriff and Abdul Aziz Mohamed struck out Soh’s appeal with cost after hearing submissions from both parties.
Soh was represented by D. Paramalingam while Tan Hock Chuan appeared for CIMB Securities.
On Nov 30,1998, Justice James Foong allowed an order for summary judgment to be entered against Soh after he failed to pay RM2,966,445.23 to CIMB Securities for breach of contract.
On Jan 30, 1997, Soh entered into a contract with the company to finance his purchase of securities subject to the terms and conditions in CIMB Securities’ letter of offer.
Three days later, Soh executed a mortgage in favour of the securities company as required in the offer letter.
A clause in the mortgage stated that Soh would “irrevocably and unconditionally” agree to pay CIMB Securities on demand the sum defined as “secured indebtedness.”
On Dec 31, 1997, Soh failed to fulfil a margin call notice, and he was ordered to pay the outstanding amount of over RM2mil demanded by the securities company in a letter dated March 4, 1998.
He did not pay the outstanding amount.
In another case, the appellate court dismissed an appeal by Soh’s wife, Datin Lau May Foong, against a summary judgment awarded by Justice R.K. Nathan on Dec 11, 1998, to CIMB Securities amounting to RM1.7mil.
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