High Court Stops Bank From Closing Shipping Company’s Accounts Pending Hearing

The High Court here today granted an ad-interim injunction to Maritime Network Sdn Bhd to temporarily stop RHB Bank Berhad from closing the company’s two long-standing accounts, pending the hearing of the full injunction application. The application was filed on Wednesday by the company’s director, Datuk Seri R. Jeyenderan (far right).

KUALA LUMPUR, Oct 17: The High Court here today granted an ad-interim injunction to a shipping company to temporarily stop RHB Bank Berhad from closing the company’s two long-standing accounts, pending the hearing of the full injunction application.

Counsel P. Taneswaran, who appeared for Maritime Network Sdn Bhd, said the order was issued by Judicial Commissioner Eddie Yeo Soon Chye during proceedings held in chambers. 

The application was filed on Wednesday by the company’s director, Datuk Seri R. Jeyenderan and was heard today after the company filed a certificate of urgency yesterday for the matter to be heard without delay.

“The hearing (one side) was held in chambers before Yang Arif Eddie Yeo, since the defendant (bank) has not been served yet,” said Taneswaran adding that the court has fixed Nov 14 for case management.

An ad interim injunction is a temporary court order granted before a full hearing, often based on the request of one party alone. In contrast, an inter partes hearing is one where the court hears arguments from both sides before making a decision.

According to the certificate of urgency dated Oct 16, the plaintiff has maintained two accounts with the defendant since Sept 23, 2005 – a multi-currency account and a current account.

On Oct 6, this year, the plaintiff received a termination notice dated Oct 1 stating that the bank intended to close the accounts and terminate all banking services and facilities within 14 days, alleging a breach of internal policies and guidelines.

However, the plaintiff alleged that the bank did not provide any details or explanation of the specific policies, requirements or guidelines that were allegedly breached.

The plaintiff also claimed there was an ongoing dispute between both parties over the accounts, which led to a discovery application being filed by way of originating summons in the High Court here, but it was dismissed on July 2. On the same day, the plaintiff filed an appeal at the Court of Appeal, which has been fixed for hearing on Dec 11.

The plaintiff further claimed that alleging a breach of internal policies without providing details or explanation has placed the company in a state of uncertainty and denied it an opportunity to defend itself, thereby prejudicing its rights.

–WE