Nabil Luqman

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Social

education

MARA

high court

breach in contract

dropout

education loan

repay

A 45-year-old woman and three family members who acted as her guarantors have been ordered to repay RM857,000 in education loans to MARA, after the Sungai Petani High Court dismissed their appeal against an earlier Sessions Court ruling.
The decision comes as Majlis Amanah Rakyat (MARA) continues to intensify efforts to recover unpaid loans, with the agency recently reiterating that it will not compromise with borrowers who deliberately default on repayments.
High Court Upholds MARA&rsquo;s Claim
<img src="https://r2.myc.my/8b4126761698ee2e5be3eea5ba165ae32a0f6c46a45684cad5ec96272ecfff08" />
Judicial Commissioner Darmafikri Abu Adam ruled that there was no merit in the appeal filed by Siti Norbaya Ahmad Nor and her three guarantors &mdash; Siti Zaliha Ahmad Nor, Siti Farhana Ahmad Nor, and Jamilah Long.
In a written judgment released last week, the court found that the Sessions Court's findings were supported by evidence and did not contain any significant errors that warranted intervention.
The appellants were also ordered to pay RM10,000 in legal costs.
A key argument raised by the appellants was that MARA's recovery action should be barred under the Limitation Act 1953, particularly concerning a loan agreement signed in 2011. However, the High Court rejected this argument, ruling that MARA had acted within the legally prescribed timeframe.
According to the court, MARA had exercised its contractual discretion to defer repayment obligations while Siti Norbaya continued her studies under a subsequent sponsorship arrangement, meaning the lawsuit filed in 2022 remained valid.
From Manchester Master's Degree To Cambridge PhD
<img src="https://r2.myc.my/7dd613c8ff4a3c217b11437e4161e622654044091d14e63c8f7db9ed107c71e6" />
Court documents revealed that Siti Norbaya first received financial assistance from MARA in 2011 to pursue a Master's degree at the prestigious University of Manchester.
Two years later, she secured a second MARA loan to undertake a PhD programme at the renowned University of Cambridge.
Her three family members signed both agreements as guarantors, making them legally responsible should she fail to fulfil the terms of the loan.
MARA later initiated legal proceedings after alleging that she had failed to repay the accumulated debt.
Failure To Complete PhD Led To Breach Of Contract
<img src="https://r2.myc.my/2d945dab018f9dc8d97a1cdb00ad3de5a5353d67052bfecbc0937a47a6186bf5" />
A major issue before the court was whether Siti Norbaya had complied with the conditions attached to her doctoral sponsorship.
The court noted that Clause 4.6 of MARA's 2013 offer letter and Clause 3.1(a) of the accompanying loan agreement clearly required her to complete her PhD studies within four years.
In a letter dated 15 February 2017, Siti Norbaya acknowledged that she was unable to complete her doctorate within the original sponsorship period. MARA subsequently granted her an extension until August 2017.
However, despite the additional time, she still failed to complete the programme.
The court ruled that her inability to finish the PhD within the extended period of four years and seven months constituted a clear breach of contract.
As a result, MARA became entitled to invoke Clause 3.5 of the agreement, allowing it to demand repayment of the entire loan amount.
University Status Did Not Affect MARA&rsquo;s Rights
&nbsp;<img src="https://r2.myc.my/79f3cb24a1b4a4b4718bc5c234e3d0fce85064f93731c352f477e7ae0a579540" />
During the proceedings, Siti Norbaya argued that she had obtained a "reinstatement" status from the university.
However, the court held that any internal academic decisions made by the university had no bearing on MARA's contractual rights.
Judicial Commissioner Darmafikri stressed that the intentions of both parties had been clearly outlined in the loan agreement from the beginning and could not be reinterpreted later to avoid repayment obligations.
The court further noted that, as of the trial date, Siti Norbaya had still not completed her PhD studies.
MARA Maintains Tough Stance On Defaulters
&nbsp;<img src="https://r2.myc.my/702b401595ea5b435f9f71326a559e038a386ffedafd3bc9f98e9e6a4731d543" />
The ruling comes amid MARA's broader push to recover outstanding loans and strengthen financial discipline within the agency.
MARA chairman Asyraf Wajdi Dusuki recently revealed that the agency's non-performing loans (NPLs) reached RM893 million in 2024, representing 49.6 per cent of its loan portfolio.
According to him, 97,866 out of 197,348 active borrowers had been blacklisted as of October 2024 after failing to service their loans for at least three months. Asyraf stressed that MARA funds are public trust funds and not private money, adding that every sen recovered can be channelled towards helping future students and entrepreneurs.
He also stated that MARA would not entertain requests for exemptions, even if they came through influential individuals or prominent figures. The chairman described legal action against deliberate defaulters as part of MARA's ongoing transformation agenda, aimed at ensuring accountability and protecting public funds.
A Reminder For Borrowers And Guarantors
The case also highlights the significant responsibilities carried not only by borrowers but also by guarantors who agree to back education loans.
By signing the agreements, the guarantors became jointly liable for the debt when the borrower failed to fulfil the conditions of the sponsorship programme.
With the High Court now affirming the Sessions Court's decision, Siti Norbaya and her three guarantors remain liable to repay the RM857,000 loan amount, in addition to the RM10,000 legal costs awarded by the court.
&nbsp;
*Sources: Visual and Reference Credits to Social Media &amp; various cross-references for context.
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The court ruled that the borrower breached her scholarship agreement after failing to complete her doctoral studies despite receiving an extension from MARA.

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High Court Orders Cambridge PhD Dropout And Three Guarantors To Repay RM857,000 MARA Loan

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High Court Orders Cambridge PhD Dropout And Three Guarantors To Repay RM857,000 MARA Loan

The court ruled that the borrower breached her scholarship agreement after failing to complete her doctoral studies despite receiving an extension from MARA.

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