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The Sungai Petani High Court dismissed an appeal by a 45-year-old woman and her three guarantors against a Sessions Court summary judgment. The ruling ordered them to repay RM857,000 in outstanding education loans to Majlis Amanah Rakyat (MARA).
Judicial Commissioner Darmafikri Abu Adam found no merit in the appellants' arguments, stating that the trial court's original findings were entirely reasonable, well-supported by evidence, and free from any manifest error, according to Free Malaysia Today.
Siti Norbaya Ahmad Nor received her first financial assistance from MARA in 2011 to pursue a master's degree at the University of Manchester.
Following this, she secured a second loan agreement in 2013 to fund a doctoral programme at the University of Cambridge. Her family members — Siti Zaliha Ahmad Nor, Siti Farhana Ahmad Nor, and Jamilah Long — signed both agreements to act as her legal guarantors. MARA eventually initiated legal proceedings in 2022 after Siti Norbaya repeatedly failed to service the accumulated debt.
The appellants contended that Siti Norbaya had completed her master's degree within the stipulated timeframe. They argued that MARA's recovery claim under the 2011 loan contract violated the Limitation Act 1953
However, the High Court rejected this defence entirely. Darmafikri clarified that MARA possessed the explicit contractual discretion to determine when the loan repayment became due.
Because the statutory body intentionally deferred the repayment timeline while the student transitioned into her doctoral studies under the secondary 2013 arrangement, the suit filed in 2022 remained within the statutory limitation period.
The written judgment, which the court released last week, heavily emphasised that the clear intentions of a contract bound all signing parties.
According to the explicitly stated terms in Clause 4.6 of the 2013 offer letter and Clause 3.1(a) of the subsequent loan agreement, Siti Norbaya had a strict obligation to complete her PhD studies within a four-year window.
Although she acknowledged her academic struggles in a formal letter dated 15 February 2017, she failed to meet the terms of a subsequent extension
MARA had extended her sponsorship period until August 2017, yet she still failed to deliver her doctorate.
The court ruled that her failure to complete her studies within four years and seven months constituted a definitive breach of contract. This triggered Clause 3.5 of the 2013 agreement, allowing MARA to demand the immediate repayment of the entire loan sum.
Darmafikri also dismissed the appellant's claims regarding an alleged "reinstatement" status granted by the university, noting that such internal academic classifications do not bind MARA.
The High Court ultimately upheld the Sessions Court's decree, ordering the appellants to pay an additional RM10,000 in legal costs. Lawyer Nik Nur Amirah Nik Nuzul represented the appellants, while Anis Amirah Amran appeared for MARA.
