Public Bank Berhad v National Feedlot Corporation Sdn Bhd & Ors

Federal Court · · Contract Law, Commercial Law

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Public Bank Berhad v National Feedlot Corporation Sdn Bhd & Ors
CourtFederal Court
Judgment Date18 June 2025
Date Uploaded3 July 2025
Legal TopicsContract Law, Commercial Law
Parties

Appellant(s): Public Bank Berhad

Respondent(s):

  • National Feedlot Corporation Sdn Bhd (P-1)
  • National Meat & Livestock Corporation Sdn Bhd (P-2)
  • Agroscience Industries Sdn Bhd
  • Real Food Company Sdn Bhd (P-4)
  • Dato' Sri Dr Mohamad Salleh Bin Ismail (P5)
Bench
  • YAA Tan Sri Hasnah binti Dato' Mohammed Hashim
  • YAA Tan Sri Abdul Rahman bin Sebli
  • YA Dato' Abu Bakar Bin Jais
Facts & Background
  • The appellant bank appealed against the Court of Appeal's decision which found it liable for breaching an implied contractual duty of confidentiality owed to the respondents.
  • The dispute arose when confidential banking information of the respondents, obtained by the appellant's employees, was disclosed by a third party at a press conference.
  • The High Court had initially dismissed the respondents' claim, but the Court of Appeal reversed this decision on liability, though it awarded only nominal damages.
Issues for the Court
  • Whether the appellant bank's implied contractual duty of confidentiality is a qualified duty with exceptions (as per the English common law principle in *Tournier*), or an absolute duty.
  • Whether the appellant bank's liability for breach of this duty, in a banker-customer contract of service, is a fault-based liability or a strict liability.
  • The applicability of English common law principles regarding banking secrecy in Malaysia, given the existence of specific written law, namely the Banking and Financial Institutions Act 1989 (BAFIA) and Section 3(1) of the Civil Law Act 1956.
Decision
  • The Federal Court dismissed the appellant's appeal on liability, affirming the Court of Appeal's finding that the appellant had breached its duty of confidentiality.
  • The Court held that the bank's duty of secrecy in Malaysia is primarily governed by Section 97(1) of BAFIA, which applies to the bank as a "person" and not solely its directors or officers.
  • The Court ruled that English common law principles, such as those from *Tournier* and the *Quincecare duty*, have no application in Malaysia where specific written law (BAFIA) exists, in accordance with Section 3(1) of the Civil Law Act 1956.
Link to JudgmentView Full Judgment

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