Case Update: Bank Negara’s Small Debt Resolution Scheme Does Not Have Mandatory Moratorium

In the High Court decision of Bank Muamalat Malaysia Berhad v Prolink Marketing Sdn Bhd & 2 others [2019] 1 LNS 702, the Court held that Bank Negara’s Small Debt Resolution Scheme (SDRS) merely provided advice to a bank to observe a standstill in legal proceedings against distressed borrowers. It was not mandatory for the bank to halt legal proceedings.

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