JUDGMENT

Gan Techiong JC:

Introduction

[1] If all commercial banks in Malaysia are to impose the same exclusion clause as the Respondent Bank in this case when handling overseas remittances for their customers, there is much for the customers to worry about. This is so because the Respondent Bank takes the position that it is entitled to rely on exclusion clauses in its Remittance Form to disclaim all liabilities if the customer's money had been erroneously credited into the bank account of someone whose name is completely different from the beneficiary/payee's name stated in the Remittance Form.

[2] In reply to my question during the hearing of this appeal, learned counsel for the Respondent Bank confirmed the bank's position is that it would disclaim liability even if the remitted money had been erroneously credited into a bank account overseas belonging to someone whose name and account number are completely different from the name and account number stated in the Remittance Form. This revelation triggered audible gasps from the Bar Table and public gallery of this Court. The bank's position is that it would "do its best" to assist the customer to request a refund from overseas but would disclaim liability.