PESTEC International Bhd has obtained an interim injunction from the Kuala Lumpur High Court restraining Shandong Power Equipment Co Ltd (SPECO) from enforcing a disputed corporate guarantee that purportedly exposes PESTEC to liabilities of up to US$10 million.
The injunction forms part of an ongoing civil suit brought by PESTEC and its subsidiaries, Enersol Co Ltd and Pestech Sdn Bhd, against SPECO, Shandong Electrical Engineering & Equipment Group Co (SDEE) and certain former members of PESTEC’s management.
The group said it had applied for the injunction after discovering what it described as material discrepancies in underlying transaction documents and invoices involving SPECO and/or SDEE.
The company is seeking to prevent the defendants from enforcing or taking steps to enforce an undated corporate guarantee purportedly issued by PESTEC to guarantee Enersol’s obligations to SPECO.
PESTEC is also seeking to restrain the creation, alteration, backdating or manipulation of documents that could give the impression that the corporate guarantee had been duly executed, approved or recorded by the company at the relevant time.
According to PESTEC, SPECO relied on the disputed corporate guarantee in a statutory notice dated March 9, 2026, demanding US$11.18 million from the company.
The corporate guarantee itself purportedly imposes liability of up to US$10 million on PESTEC.
However, PESTEC said its review found that the guarantee was undated and was not supported by the payment schedule referred to in the document.
The company also said the guarantee had never been recognised or recorded as a liability or obligation in its audited financial statements.
PESTEC further claimed there was no board resolution authorising the relevant signatories to execute the guarantee on behalf of the company or to affix its common seal.
The guarantee was also not disclosed in a disclosure letter provided under a subscription agreement dated Oct 4, 2024, which was entered into before the change in control of PESTEC.
Based on these findings, PESTEC said it has reasonable grounds to believe the corporate guarantee is a false document and/or was created or used fraudulently to establish a liability against the company.
The allegations have not been determined by the court.
PESTEC said it lodged a further police report concerning the corporate guarantee on Aug 9, 2026.
The company’s application was heard by the Kuala Lumpur High Court on Sept 2.
The court granted an ex-parte injunction restraining SPECO, including its employees, agents and representatives, from enforcing, executing, demanding or taking any steps to enforce the disputed corporate guarantee.
The injunction will remain in effect until Sept 15, 2026, when the inter partes hearing is scheduled, or until a further order of the court.
The court also granted the parties liberty to make any applications they consider necessary.
The latest development follows PESTEC’s Aug 20 announcement concerning the civil suit and represents an interim court order while the substantive disputes and allegations raised by the company remain subject to judicial determination.
