JUDGMENT
Introduction
[1] The appellant is a moneylender licensed under the Moneylenders Act 1951 ("MLA 1951"). The respondent was, at all material times, a shareholder and Director of Instant Bonus Sdn Bhd ("Instant Bonus"), a property development company. Instant Bonus was the developer of a project known as "Robson Hill Residency".
[2] The appellant and the respondent entered two moneylending agreements dated 9 July 2018 and 24 August 2018 ("Moneylending Agreements"). Both Moneylending Agreements were in the statutory form for "Moneylending Agreement (Unsecured Loan)" provided in Schedule J of the Moneylenders (Control and Licensing) Regulations 2003 ("Regulations 2003") made by the Minister under s 29H MLA 1951.
[3] The Moneylending Agreement dated 9 July 2018 ("1st MLA") was for the loan sum of RM2,000,000.00, and the Moneylending Agreement dated 24 August 2018 ("2nd MLA") was for the loan sum of RM1,500,000.00. The interest charged for both agreements was at the rate of 1.5% per month, which is equivalent to 18% per annum.
[4] Simultaneous to entering into the 1st MLA and 2nd MLA, the respondent wrote Letters of Instruction ("LOIs") dated 9 July 2018 and 24 August 2018, respectively, to the appellant, instructing the latter to disburse the loan sums under the Moneylending Agreements to Instant Bonus.
[5] The loans were secured by guarantees executed by Instant Bonus dated 9 July 2018 and 24 August 2018, respectively, where it unconditionally guaranteed the loan sums and all outstanding sums due and owing by the respondent under the 1st MLA and 2nd MLA, respectively ("Guarantees").
[6] Pursuant to the Moneylending Agreements, the LOIs, and the Guarantees, the appellant disbursed the total sum of RM3,423,500.00 to Instant Bonus. The sum of RM76,500.00 ("transaction costs") was deducted from the RM3.5 million total loan sum as transaction costs borne by the respondent. Out of the total loan sum disbursed to Instant Bonus, only the sum of RM40,000.00 was repaid to the appellant.