Another Legal Victory for Zavarco Plc

In February 2026, High Court Judge Quay Chew Soon struck out Bank Pembangunan Malaysia Bhd’s (BPMB) RM564.99 million lawsuit against 30 defendants based on the following legal grounds: 

Lack of Locus Standi (Legal Standing): The judge ruled that the bank did not have the right to sue the 30 defendants to recover the loan proceeds. He noted that since the RM400 million loan was granted to Aries Telecoms (M) Bhd, only Aries—not the bank—had the legal standing to claim for any misapplication of those funds.

Prior Summary Judgment: The court found that BPMB had already satisfied its legal recourse by obtaining a summary judgment against Aries (the primary recipient) in a separate case that went to the Federal Court. The judge stated that the bank could not now "casually bypass" the recipient to pursue third parties for the same money.

Res Judicata: Judge Quay held that even if the bank had standing, the claim was barred by the doctrine of res judicata, which prevents parties from relitigating issues that have already been decisively judged.

Inconsistent Legal Position: The court highlighted that in previous proceedings, the bank had maintained it was disinterested in how Aries used the loan proceeds. Having accepted that position to win its earlier case, it could not legally shift its stance to claim damages for the misapplication of those same funds. 

The lawsuit, initiated in 2022, had alleged fraud, bribery, and conspiracy involving the bank’s late former managing director and 29 other individuals and entities.