Federal Court orders KBH Marine to repay RM50mil despite invalid loan over Penang properties

Federal Court dismissed KBH Marine’s appeal, allowing Ace Credit to recover RM50 million despite the loan agreement being invalid. A three-judge panel unanimously rejected the appeal under Section 96 of the Courts of Judicature Act. The Court of Appeal had ruled the loan breached the Moneylenders Act, but Section 66 of the Contracts Act allowed recovery of benefits; KBH also must pay RM50,000 costs. The RM50 million was advanced in 2017 to Pioneer Conglomerate, secured by KBH's three Penang properties. Security documents were unenforceable, but repayment prevented unjust enrichment, citing Detik Ria v Prudential.