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Issue #44/2026
29 October 2026

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CASE SPOTLIGHTS

LUBRICLEUM SDN BHD v. PP [2026] 9 CLJ 627
HIGH COURT MALAYA, JOHOR BAHRU
ABDUL FAREED ABDUL GAFOOR JC
[CRIMINAL REVIEW NO: JA-43-13-06-2026]
24 JULY 2026

Where a court exercises its discretionary power of forfeiture over seized property, the disclosure of a known third-party registered owner triggers an absolute statutory and constitutional obligation to issue notice and conduct a 'show cause' inquiry under art. 13 of the Federal Constitution. This protective framework cannot be bypassed via a plea bargain under s. 172C of the Criminal Procedure Code, as its binding effect is strictly confined to the immediate parties and cannot divest the rights of an uninvolved third party. Under the principle of nemo dat quod non habet, an accused holding mere temporary possession lacks the legal standing to surrender property they do not own, while the prosecution remains bound by a duty of full and frank disclosure. Consequently, ordering forfeiture in a procedural vacuum without affording a known owner the right to be heard (audi alteram partem) constitutes a manifest miscarriage of justice that completely vitiates the order.

CRIMINAL PROCEDURE: Revision - Application for - Order of forfeiture made against vehicles owned by third party - Third party not summoned or given opportunity to show cause - Whether breach of rules of natural justice and audi alteram partem - Whether contravention of art. 13 of Federal Constitution - Whether there was miscarriage of justice - Whether fit and proper case for intervention - Whether matter ought to be remitted to lower court for fresh inquiry - Criminal Procedure Code, s. 325 - Control of Supplies Act 1961, s. 21

CRIMINAL PROCEDURE: Forfeiture - Order of forfeiture - Order of forfeiture made against vehicles owned by third party - Third party not summoned or given opportunity to show cause - Whether breach of rules of natural justice and audi alteram partem - Whether contravention or art. 13 of Federal Constitution

CRIMINAL PROCEDURE: Forfeiture - Seized vehicles - Order of forfeiture made against vehicles owned by third party - Third-party ownership disclosed via Road Traffic Department search - Whether court under statutory duty to cause notice to be served on known owner - Whether lower court erred in ordering forfeiture without 'show cause' inquiry - Criminal Procedure Code, s. 413(2)

CRIMINAL PROCEDURE: Plea of guilty - Plea bargain agreement between prosecution and accused - Binding effect - Forfeiture of property included in plea bargain agreement - Accused had mere possession of vehicles but was not registered owner - Whether plea bargain could divest or compromise substantive constitutional property rights of uninvolved third party - Application of principle of nemo dat quod non habet - Criminal Procedure Code, s. 172C


APPEAL UPDATES

  1. Rozzana Chung Abdullah & Ors v. United Highlands Sdn Bhd [2026] CLJU 1627 overruling the High Court case of United Highlands Sdn Bhd v. Rozzana Chung Binti Abdullah & Ors [Suit No. CA-22NCvC-66-12/2017]

  2. Kathryn Ma Wai Fong v. Wong Kie Chie & Ors [2026] CLJU 1405 affirming the High Court case of Wong Kie Chie v. Kathryn Ma Wai Fong & Ors [Suit No: SBW-22NCvC-14/4-2014]

LATEST CASES

Legal Network Series

[2026] CLJU 181

NEWACTION MARKETING SDN BHD & ANOR v. LEE LUN TEONG

In an application for discovery, the burden in on the party seeking a document to provide materials to satisfy the Court that the document sought must be or have been in the possession, custody or power of the party against whom the order is sought. A mere and/or bare assertion without any evidence cannot be a sufficient basis for an order for discovery.

CIVIL PROCEDURE: Discovery - Application for - Further discovery - Application by defendant - Friendly loan agreement - Whether document sought in possession, custody and power of plaintiffs - Whether application necessary for fair disposal of case - Whether application premised on bare assertion - Whether plaintiffs could be compelled to produce documents that they did not possess - Whether application amounted to fishing expedition

  • For the plaintiffs - Ahmad Ezmeel Ahmad Tarmizi & Athari Bahardin; M/s Athari
  • For the defendant - Ong Swee Long & Teo Chung Loong; M/s Armiy Rais

[2026] CLJU 182

GEO HILL CONSTRUCTION SDN BHD v. PESAT BUMI SDN BHD

For the purposes of a winding up petition, an award made under the Construction Industry Payment & Adjudication Act 2012 is deemed indisputable. In such circumstances, the petitioner is entitled ex debito justitiae to a winding of order.

COMPANY LAW: Winding up - Stay - Winding up petition premised on debt arising from adjudication decisions - Whether award made under Construction Industry Payment & Adjudication Act 2012 deemed indisputable - Whether petitioner entitled to winding up order - Whether application for stay academic

  • For the petitioner - Hazelyn Khoo Hui Ying; M/s Lee & Poh Partnership
  • For the opposing creditors - See Kwong Yan; M/s See Kwong Yan
  • For the respondent - Ting Lee Ping; M/s Ringo Low & Associates

[2026] CLJU 196

JUPITER ENTERPRISE SDN BHD v. BINA JAGUH PERKASA SDN BHD

1. A settlement agreement constitutes an unequivocal acknowledgment of indebtedness when it is voluntarily executed by both parties, its terms are clear and unambiguous and it expressly records the quantum of the debt and the respondent's obligation to pay. Where the debt arose from a settlement agreement, which quantified the amount owing and provided for immediate enforcement upon default, then the respondent's default crystallised the petitioner's right to recover the entire outstanding sum under the settlement agreement. Such admitted, liquidated and due debt is sufficient to present a winding up petition.

2. The mere fact that a settlement agreement may have been commercially onerous, or that the respondent was under financial pressure at the time, does not in itself amount to duress in law. Commercial pressure is a common feature of settlement negotiations. What is required is proof of illegitimate pressure which vitiates consent.

COMPANY LAW: Winding up - Petition - Inability to pay debts - Debt acknowledged in settlement agreement - Default of payment - Failure to comply with statutory notice - Respondent alleged commercial pressure - Whether debt relied upon bona fide disputed on substantial grounds - Whether absence of judgment debt precluded presentation of winding up petition - Whether respondent deemed unable to pay its debts within meaning of s. 466(1)(a) of Companies Act 2016

  • For the appellant - Lim Swee Foo; M/s Kevin Kiran Ng & Associates
  • For the respondent - Simon Hong; M/s Simon Hong

[2026] CLJU 168

PP lwn. MOHAMAD ROZI MOHAMED YUNUS

Beban pembuktian tidak terletak kepada pembelaan untuk membuktikan kebarangkalian akses oleh orang lain di dalam bilik di mana tertuduh ditangkap bersama barang kes tetapi adalah menjadi beban kepada pendakwaan bagi mengetepikan sebarang kebarangkalian akses oleh orang lain. Justeru, beban bagi membuktikan kawalan, jagaan dan pengetahuan ke atas dadah atau bahan racun adalah terletak ke atas pihak pendakwaan.

PROSEDUR JENAYAH: Rayuan - Rayuan terhadap pelepasan dan pembebasan - Rayuan oleh pendakwa raya - Pertuduhan-pertuduhan di bawah s. 12(2) Akta Dadah Berbahaya 1952 dan s. 30(3) Akta Racun 1952 - Barang kes dijumpai di dalam bilik yang dihuni oleh tertuduh yang boleh diakses oleh orang lain - Sama ada dapatan hakim bicara bahawa pembelaan  berjaya menimbulkan keraguan munasabah wajar diganggu - Sama ada kedudukan terdekat tertuduh dengan barang kes merupakan keterangan kukuh untuk membuktikan pemilikan - Sama ada perintah pelepasan dan pembebasan wajar dikekalkan

  • Bagi pihak perayu - Nor Hamizah Ghazali; Timbalan Pendakwa Raya
  • Bagi pihak responden - Halim Ashgar & Bashir; T/n Halim Ashgar

[2026] CLJU 175

MAYBANK ISLAMIC BERHAD lwn. NG CHEE KAE & SATU LAGI

1. Dalam kerangka prosiding halang tebus di bawah s. 256 Kanun Tanah Negara 1965 atau A. 83 Kaedah-Kaedah Mahkamah 2012, notis tuntutan hutang kepada peminjam bukan merupakan satu keperluan statutori yang wajib dikeluarkan oleh pemegang gadaian kepada penggadai sebagai pra-syarat sebelum tindakan halang tebus boleh dimulakan. Suatu notis tuntutan hutang yang bersifat in personam adalah tidak relevan dengan prosiding halang tebus yang sifatnya in rem.

2. Suatu notis 16D di bawah s. 254(1) Kanun Tanah Negara 1965 wajib menyatakan mengenai kemungkiran yang berlaku, mengarahkan kemungkiran dibetulkan dan memberi notis apa tindakan seterusnya yang akan diambil oleh pemegang gadaian jika kemungkiran gagal dibetulkan oleh penggadai. Pemegang gadaian tidak perlu membutirkan bayaran bulanan peminjam dalam notis 16D tersebut.

UNDANG-UNDANG TANAH: Gadaian - Perintah jualan - Gadaian pihak ketiga bagi kemudahan pembiayaan - Kemungkiran terma-terma kemudahan pembiayaan - Sama ada wujud sebab bertentangan yang menyebabkan permohonan ditolak - Sama ada pemegang gadaian perlu memberikan notis tuntutan terlebih dahulu kepada penggadai - Sama ada pemegang gadaian perlu membutirkan bayaran bulanan pinjaman dalam notis 16D - Sama ada sijil keterhutangan merupakan keterangan konklusif mengenai hutang - Sama ada sijil keterhutangan dicabar oleh penggadai - Kanun Tanah Negara 1965, s. 256 - Kaedah-Kaedah Mahkamah 2012, A. 83

  • Bagi pihak plaintif - T/n Sucha Singh & Partners
  • Bagi pihak defendan-defendan - T/n Lau Kok Guan, Liana & Kuan

CLJ 2026 Volume 9 (Part 3)

(i) In determining the forum non conveniens within cross-border matrimonial disputes, the best interests of the child - underpinned by the United Nations Convention on the Rights of the Child 1995 - must serve as the paramount and overriding consideration. This is particularly true where the children's educational, medical, and emotional attachments, coupled with the practical enforceability of subsequent custody orders, establish an overwhelming connection to a specific foreign jurisdiction. (ii) Any extraterritorial service of court processes via electronic means that circumvents or violates the mandatory domestic laws of the receiving State fundamentally breaches O. 11 r. 5(2) and (3) of the Rules of Court 2012 ('ROC'). Because such non-compliant service directly infringes upon state sovereignty and undermines international comity, it constitutes a fundamental, structural defect going directly to jurisdiction. Such an illegality cannot be cured under O. 1A and O. 2 r. 1(1) of the ROC, rendering the purported service wholly void.
ABC v. XYZ & Another Appeal [2026] 9 CLJ 331 [CA]

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FAMILY LAW: Divorce - Jurisdiction - Forum non conveniens - Marriage solemnised in Malaysia under Law Reform (Marriage and Divorce) Act 1976 - Divorce proceedings commenced by wife in Singapore and husband in Malaysia - Family relocated to Singapore but husband returned to reside and trade in Malaysia - Whether Malaysian High Court or Singapore Family Justice Court natural and appropriate forum - Factors to consider - Special needs of children residing in Singapore - Balance of convenience and connection to jurisdiction

CIVIL PROCEDURE: Service - Service out of jurisdiction - Ex parte leave - Challenge to validity of service - Grant of ex parte leave by High Court - Service of divorce cause papers in Singapore - Requirement of personal service or registered post under Singapore Family Justice Rules 2014 ('FJR') - Substituted service via electronic means - Conditions precedent - Whether service by electronic means permissible without explicit order for substituted service - Rules of Court, O. 11 rr. 5(2), 5(3) - Family Justice Rules 2014 (Singapore), rr. 48(1), 50(1), 901(1), 901(3), 901(4 )

CIVIL PROCEDURE: Non-compliance with rules - Curing of irregularities - Purported service of cause papers via email and WhatsApp out of jurisdiction - Failure to comply with mandatory provisions of O. 11 r. 5(2) dan (3) of Rules of Court 2012 - Whether non-compliance could be cured under O. 1A and O. 2 r. 1(1) of Rules of Court 2012 - Whether prejudice occasioned to opposing party - Whether breach went to root of jurisdiction rendering service incurably defective - Rules of Court 2012, O. 1A, O. 2 r. 1(1), O. 11 r. 5(2), (3)

 

Hashim Hamzah CJ (Malaya)
Wong Kian Kheong JCA
Alwi Abdul Wahab JCA

  • For the appellant - Malik Imtiaz Sarwar, Goh Siu Lin, Yvonne Lim & Cheong Khai Ze; M/s Kee Sern, Siu & Huey
  • For the respondent - Foo Yet Ngo, Kiran Dhaliwal, John Heng & Muhammad Naif Amal Zulkiflie; M/s Misyail Othman & Co

(i) Where a lender receives a revised development proposal with supporting financial projections, raises no objections to its commercial viability, and allows the borrower to act on the assumption that it forms the operational basis of the project, the lender is estopped from arguing that losses derived from the revised proposal are unforeseeable or outside the parties' reasonable contemplation under s. 74 of the Contracts Act 1950; (ii) Loss of profits for a housing development project is properly assessed using the conventional formula of gross development value (GDV) minus gross development cost (GDC), established through reliable, updated factual and expert evidence.
Bank Kerjasama Rakyat Malaysia Bhd v. Kamuja Hartamas Sdn Bhd [2026] 9 CLJ 347 [CA]

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BANKING: Islamic banking - Financing facilities - Bridging facilities - Islamic financing facilities granted for housing development project - Wrongful termination of facilities - Substantial component of funding expected from purchasers and progressive drawdowns - Lender withheld consent to land subdivision - Whether lender's conduct impeded regulatory approvals and project progress - Whether wrongful termination effective cause of project's failure and loss of profits

CONTRACT: Damages - Breach - Loss of profits - Wrongful termination of financing facilities - Quantum and assessment - Developer's loss of profits - Calculation based on revised development proposal - Reliability of valuation and costing evidence - Whether award based on concrete expert evidence and party admissions - Whether lender estopped from asserting losses unforeseeable or outside parties' reasonable contemplation - Whether deductions for income tax properly applied to net loss of profits award - Contracts Act 1950, s. 74

 

Ismail Brahim JCA
Lim Hock Leng JCA
Evrol Mariette Peters JCA

  • For the appellant - Cyrus V Das, Mohd Munzeer Zainul Abidin & Mohammad Zaid Daud; M/s Yusfarizal, Aziz & Zaid
  • For the respondent - Krishna Dallumah, Yung Yoong Hui & Marcus Chung Yu Hang; M/s S Mathews & Assocs

In medical negligence litigation, liability must be assessed strictly on the balance of probabilities without imposing a heightened burden of proof. Courts cannot draw an adverse inference where evidence was not actually withheld, nor can they decide unraised issues in violation of natural justice. Unjustified non-compliance with established clinical protocols that materially contributes to an injury establishes liability, and contemporaneous medical records prevail over late oral contradictions. Finally, trial judges must provisionally assess damages even when dismissing a claim on liability.
Muhammad Aiman Mohd Hisham (A Child Suing Through His Mother And Litigation Representative, Afidah Ayob) v. Kerajaan Malaysia & Ors [2026] 9 CLJ 377 [CA]

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TORT: Negligence - Medical negligence - Duty of care and standard of care - Breach - Child suing through mother - Allegation that tortfeasors negligent in managing mother's obstetric care and child's subsequent neonatal care - Child suffered from brain damage, resulting in spastic quadriplegic cerebral palsy with epilepsy and global developmental delay - Whether there was deviation from mandated protocol - Contemporaneous medical records recording 'foul smelling liquor' disavowed by doctor at trial as mistake - Weight to be attached to contemporaneous records vis-à-vis late oral testimony - Whether breaches of duty caused or materially contributed to irreversible brain damage - Whether alleged tortfeasors liable

EVIDENCE: Standard of proof - Medical negligence - Child suing through mother - Allegation that tortfeasors negligent in managing mother's obstetric care and child's subsequent neonatal care - Child suffered from brain damage, resulting in spastic quadriplegic cerebral palsy with epilepsy and global developmental delay - Trial judge required 'conclusive, strict and affirmative' proof and 'high degree of probability' - Whether trial judge applied standard higher than balance of probabilities - Whether fundamental misdirection vitiating findings on liability - Evidence Act 1950, s. 114(g)

EVIDENCE: Adverse inference - Non-production of document - Allegation that tortfeasors negligent in managing mother's obstetric care and child's subsequent neonatal care - Child suffered from brain damage, resulting in spastic quadriplegic cerebral palsy with epilepsy and global developmental delay - Allegation that there was non-production of antenatal records and ultrasound scans - Documents disclosed by opposing party and before court - Whether condition precedent of withholding or suppression of evidence established - Whether trial judge erred in drawing adverse inference - Evidence Act 1950, s. 114(g)

DAMAGES: Assessment - Duty of trial judge - Claim for medical negligence - Dismissal of action on liability - Failure of trial judge to assess damages provisionally despite evidence led - Whether trial judge had duty to assess damages despite dismissal of action on liability

Supang Lian JCA
Shahnaz Sulaiman JCA
Ahmad Shahrir Mohd Salleh J

  • For the appellant - Manmohan S Dhillon, Karthi Kanthabalan & Alicia Chin; M/s PS Ranjan & Co
  • For the respondent - SFC

Execution proceedings conclude upon the granting of an execution order, leaving no pending proceedings in which a party may intervene under O. 15 r. 6 of the Rules of Court 2012. An application to intervene filed after such completion, especially when accompanied by an unreasonable and unaccounted delay, will fail to satisfy the prerequisite elements for leave to intervention. A third party simply cannot be granted leave to intervene in an execution action where there are no ongoing or pending proceedings left to intervene in.
Bina Segama Sdn Bhd v. Nelson Gerard Chow & Ors; Tan Chu Siang (Proposed Intervener) [2026] 9 CLJ 399 [HC]

CIVIL PROCEDURE: Intervention - Application for leave to intervene - Execution proceedings - Application to set aside prohibitory order and order for sale - Proposed intervener claiming beneficial ownership under uncompleted sale and purchase agreement - Order for sale granted and auction sale executed - Whether execution proceedings completed - Whether there were any ongoing proceedings left for proposed intervener to intervene in - Whether court functus officio - Whether there was inordinate and unaccounted delay in filing application - Whether prerequisite elements under O. 15 r. 6(2)(b) of Rules of Court 2012 satisfied

 

 

Maslinda Mohd Ainal J

  • For the plaintiff - Chin Yean Yean; M/s RYCO Law Firm
  • For the proposed intervener - Sudirman Lasama; M/s S K Pang & Co

(i) Contractual interpretation and the ascertainment of the parties' objective intentions require examining the agreement in its entirety, alongside contemporaneous documents executed in the ordinary course of business. Such contemporaneous documentation provides a more reliable guide to the parties' true intentions than post-dispute explanations or isolated readings of single contractual clauses; (ii) A company is bound by communications and documentation received by its directors, officers, or authorised representatives acting within the scope of their employment, and cannot subsequently deny knowledge of ordinary business communications transmitted to its management; (iii) A stakeholder's primary obligation is to objectively administer the stakeholder arrangement in accordance with the established contractual mechanism and any contemporaneous agreements. A stakeholder is not tasked with adjudicating competing proprietary claims or altering established commercial arrangements between the parties.
IB Builder Sdn Bhd v. Tetuan Teo & Chew & Ors [2026] 9 CLJ 417 [HC]

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CONTRACT: Agreement - Housing development agreement - Construction of contract and intention of parties - Parties entered into contract for development agreement for affordable housing - Failure to apportion land cost - Stakeholder released balance judgment sum to turnkey contractor - Whether contemporaneous letter of undertaking showed intention and payment mechanism - Whether contemporaneous business records reliable - Whether company bound by communications received by authorised representatives - Whether company could deny knowledge of ordinary business communications

LEGAL PROFESSION: Stakeholder - Duties - Breach - Administration of stakeholder arrangement - Parties entered into contract for development agreement for affordable housing - Monies paid out to turnkey contractor pursuant to contemporaneous agreement mechanism - Competing claims over judgment sum - Whether stakeholder required to adjudicate proprietary claims or alter established arrangements - Whether stakeholder acted properly and impartially

 

Shamsul Bahrin Abdul Manaf JC

  • For the plaintiff - M/s Najib Hisham Isa
  • For the 1st defendant - M/s Shankar Govinth
  • For the 2nd to 5th defendants - M/s Ahmad Deniel, Ruben & Co

(i) Where counsel affirms an affidavit deposing to direct personal knowledge of contested, substantive events, particularly where counsel's personal observation forms the best evidence of those facts, that counsel ceases to function merely as an advocate and becomes a primary factual witness. Under r. 28(a) of the Legal Profession (Practice and Etiquette) Rules 1978, counsel shall not appear if there is a real likelihood that their evidence will be required on a material and disputed question of fact; (ii) Disqualification of an advocate under r. 28(a) extends to their entire firm where the conflict is structural and uncontainable. Where the disqualified counsel is the principal whose personal involvement and narrative permeate the matter, any associate or other advocate within the same firm acts under his/her direction and shares access to that contested narrative, rendering the entire firm unable to maintain the requisite independence required for representation.
Kuhendran Rajan v. American Express (Malaysia) Sdn Bhd & Ors [2026] 9 CLJ 435 [HC]

LEGAL PROFESSION: Counsel - Disqualification - Counsel affirmed affidavit claiming direct personal knowledge of disputed substantive facts - Whether counsel turned into primary material witness - Whether there was real likelihood that counsel's evidence would be required - Whether continued representation compatible with rule and integrity of court proceedings - Whether disqualification extended to entire law firm - Whether firm disqualified from acting for client - Legal Profession (Practice and Etiquette) Rules 1978, r. 28(a)

 

 

Nixon Kennedy Kumbong JC

  • For the plaintiff - Bhavanash Sharma & Gheetal; M/s Bhavanash Sharma
  • For the defendants - Janice Tay, Hansikha Kaur, Mak Ming Jie, Chih Wen Ooi & Eddie Chuah; M/s Wong & Partners

A trial court cannot suo motu alter a fundamental element of a charge, such as the material date of the offence, to cure a deficiency in the prosecution's case. The power under s. 158 of the Criminal Procedure Code must be read in tandem with s. 173(h) and cannot be exercised so as to assume the prosecution's function, particularly where the amendment is made after the defence has closed its case and causes prejudice to the accused. Such an exercise of judicial power undermines the constitutional division of powers under art. 145(3) of the Federal Constitution.
Mohamad Faizal Hashim v. PP [2026] 9 CLJ 451 [HC]

CRIMINAL PROCEDURE: Charge - Amendment - Trial judge suo motu amended charge after conclusion of defence case - Material date substituted from specific date to three-day period - Whether trial judge empowered to amend fundamental element of charge to cure deficiency in prosecution's case - Whether amendment permissible in absence of prosecution application - Whether amendment prejudiced accused who had conducted defence and relied on alibi based on original date - Criminal Procedure Code, ss. 158 & 173(h) - Federal Constitution, art. 145(3)

CRIMINAL PROCEDURE: Charge - Amended charge - Trial judge suo motu amended charge after conclusion of defence case - Material date substituted from specific date to three-day period - No evidence adduced in respect of substituted dates - Whether prosecution established prima facie case on amended charge - Whether conviction null - Criminal Procedure Code, s. 173(h)(ii)

CRIMINAL PROCEDURE: Defence - Alibi - Statutory notice of alibi served in respect of date stated in original charge - Charge subsequently amended suo motu to substitute material date with three-day period after conclusion of defence case - Whether amendment rendered alibi nugatory and prejudiced accused - Whether alibi could be rejected where prosecution adduced no evidence on substituted dates - Criminal Procedure Code, s. 402A - Federal Constitution, art. 5(1)

CRIMINAL PROCEDURE: Witness - Child witness - Evidence of five-year-old victim in sexual offence - Reliability and credibility - Whether corroborated by PW1 who had no personal knowledge of alleged offence - Material inconsistencies in PW1's evidence - Failure to produce child interview centre recording and transcript - Whether adverse inference arose under s. 114(g) of Evidence Act 1950 - Whether evidence sufficient to sustain conviction

 

 

Johan Lee Kien How J

  • For the appellant - Ravishankar S N Gandhi & Shamsul Nizam; M/s Rahamat & Co
  • For the respondent - Aisyah Al Humayrah Kamaruzaman; DPP

An order for security for costs against a wound-up defendant proceeding on a genuine counterclaim will be refused where the quantum sought is disproportionate, the application is used tactically to extinguish a bona fide claim, and alternative avenues for costs recovery or set-off exist without causing real prejudice to the applicant.
Qube Integrated Malaysia Sdn Bhd v. Anggun Dinamik Holdings Sdn Bhd [2026] 9 CLJ 470 [HC]

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CIVIL PROCEDURE: Security for costs - Application for - Defendant company wound up - Winding-up court granted leave for defendant's director to prosecute counterclaim - Application by plaintiff for security for costs in sum of RM100,000 - Whether counterclaim bona fide and possessed reasonable prospects of success - Whether quantum sought proportionate to remaining trial work - Whether application tactical use of application to stifle genuine counterclaim - Whether practical risk to plaintiff minimal - Whether potential recourse against non-party driving litigation relevant - Whether application ought to be allowed - Companies Act 2016, s. 580A

COMPANY LAW: Winding up - Counterclaim by wound-up company - Application for security for costs against wound-up defendant - Sanction obtained from Insolvency Department by director/contributory to defend action and prosecute counterclaim - Whether court ought to exercise discretion to order security - Companies Act 2016, s. 580A

 

Arziah Mohamed Apandi J

  • For the plaintiff - Gabby Yow Yong Wei; M/s Jeffrey Tan & Chng
  • For the defendant - Velary Velayathan & VS Visvanathan; M/s Low & Partners

(i) Section 37 of the Arbitration Act 2005 does not confer appellate jurisdiction over errors of law or fact. The court will not re-evaluate the evidence or revisit the merits of an arbitral award unless it shocks the conscience of the court or is so manifestly unjust as to violate basic notions of morality and justice; (ii) A challenge based on natural justice or public policy must be properly pleaded and supported by clear evidence of prejudice or an infringement of fundamental principles. A party that, with knowledge of the alleged irregularity, participates in the arbitration without a timely objection, waives its right to raise the complaint subsequently.
Tengku Hitam Tengku Muda v. Dacheng Mining Sdn Bhd & Another Case [2026] 9 CLJ 483 [HC]

ARBITRATION: Award - Challenge against arbitration award - Application to set aside arbitral award - Whether errors of law and fact constituted grounds for setting aside - Whether arbitrator exceeded jurisdiction - Whether breach of natural justice and public policy established - Whether challenge based on alleged conflict of interest properly pleaded - Whether applicant waived right to object - Whether court could revisit arbitrator's factual findings - Arbitration Act 2005, ss. 37 & 38

 

 

Yusrin Faidz Yusoff J

  • For the plaintiff - Muhamad Nasrul Syahmi Mohd Ariffin; M/s Nordin Kassim & Aziz
  • For the defendant - Fitra Qalbi Hatta Mohamad Zin; M/s Eryanie Hatta & Azira

 


ARTICLES

LNS Article(s)

  1. MALAYSIAN BAR LIFETIME ACHIEVEMENT AWARD CEREMONY ACCEPTANCE SPEECH [Read excerpt]
    by Dato' Dr Cyrus V Das [2026] CLJU(A) c

  2. [2026] CLJU(A) c
    MALAYSIA

    MALAYSIAN BAR LIFETIME ACHIEVEMENT AWARD CEREMONY ACCEPTANCE SPEECH

    by
    Dato' Dr Cyrus V Das

    1. It is a singular, and indeed overwhelming honour for me to be given this award by the Bar.

    2. I wish to say it is wholly unexpected, and I was totally unaware of my nomination and of the award itself being conferred until informed by the Bar Council.

    3. I accept this honour in all humility, and state that I am suitably embarrassed by all the things said this afternoon, and the generous citation read by my good friend and colleague Encik Abdul Rashid. It was sufficiently partial coming as it does from a colleague who has been involved with me in the many public interest cases that we did together.

    4. Do excuse me if I do not dwell any further on this, and move to something more important.

    5. Do bear with me, and permit me to express some unsolicited opinion on the challenges the Bar is likely to face in the years ahead.

    6. It is important we recognise the role the Malaysian Bar plays in our civic society.

    7. It is beyond section 42 that enjoins the Bar to uphold the cause of justice without fear or favour. In truth, the Malaysian Bar enjoys in the public eye a status far beyond its statutory role.

    . . .

  3. WHERE RINGGIT MEETS BAHT: CROSSING BORDERS IN ISLAMIC FINANCE COLLABORATION [Read excerpt]
    by Maryam Khalid[i] Aliah Mohd Soberi[ii] [2026] CLJU(A) ci

  4. [2026] CLJU(A) ci
    MALAYSIA

    WHERE RINGGIT MEETS BAHT: CROSSING BORDERS IN ISLAMIC FINANCE COLLABORATION

    by
    Maryam Khalid[i]
    Aliah Mohd Soberi[ii]

    INTRODUCTION

    The primary aim of Islamic financial services is to provide ethical financial solutions tailored to the unique needs of Muslim consumers. It is built on the objectives of the concept of maqasid shariah.[1] The concept of maqasid shariah primarily focuses on promoting masalih al-ibad (human welfare)[2] and are built on, among others, the values of fairness, equitable wealth distribution and shared responsibility.[3] Characteristics of Islamic banking include, but are not limited to, prohibition of interest (riba),[4] asset-backed financing, prohibition of excessive uncertainty (gharar), prohibition of unjust enrichment, prohibition of speculation and gambling (maysir) and prohibition of unethical investment.[5]

    The Islamic finance industry encompasses banking, capital markets, insurance (takaful), and wealth management. Tracing back the history of modern Islamic finance globally, studies have shown that it originated in the early 1960s with the "pioneering experiments" in Egypt, specifically through the Mit-Ghamr Islamic Savings Associations (MGISA).[6] Founded by an economist, Dr Ahmad El-Najjar, the MGISA has successfully mobilised the savings of Muslim investors by offering a financial model that replaced interest with profit-and-loss sharing.[7]

    . . .

    [i]–[ii] Faculty of Law, University of Malaya.

  5. JUDICIAL FORECLOSURE SALES AND HISTORICAL STRATA ARREARS: THE MEANING OF "SUCCESSOR-IN-TITLE" IN PERBADANAN PENGURUSAN MEGAN AVENUE 1 v. HARJINDER SINGH KULDIP SINGH [Read excerpt]
    by Muhammad Luqman Hakim bin Roslan* [2026] CLJU(A) cii

  6. [2026] CLJU(A) cii
    MALAYSIA

    JUDICIAL FORECLOSURE SALES AND HISTORICAL STRATA ARREARS:
    THE MEANING OF "SUCCESSOR-IN-TITLE" IN PERBADANAN PENGURUSAN MEGAN AVENUE 1 v. HARJINDER SINGH KULDIP SINGH


    by
    Muhammad Luqman Hakim bin Roslan*

    INTRODUCTION

    A purchaser at a judicial auction may know the purchase price, the title and the conditions of sale, yet still face a less obvious question after registration: must historical maintenance charges and sinking fund contributions left by the former proprietor also be paid? That question arose directly in Perbadanan Pengurusan Megan Avenue 1 v. Harjinder Singh Kuldip Singh ('Harjinder').[1]

    The former proprietor, Oryx Energy Consultants Sdn Bhd, had accumulated substantial strata arrears and was wound up. Its chargee later obtained an order for sale, and the defendant became the successful bidder at the High Court e-Auction for RM1,534,760. After he was registered as proprietor, the management corporation issued an updated statement demanding RM268,571.54, substantially representing historical charges and interest attributable to the former proprietor.[2]

    The High Court dismissed the management corporation's claim for those historical arrears. In a separate decision delivered on the same day, Perbadanan Pengurusan Megan Avenue 1 v. Rajinder Singh a/l Kuldip Singh ('Rajinder') reached materially the same conclusion on a different unit and factual history. Because the reasoning is substantially parallel, this article focuses principally on Harjinder and refers to Rajinder where the companion decision reinforces the same proposition.[3]

    . . .

    [i] Advocate and Solicitor, Messrs Noryuslinda Yunus & Fariza Ismail, Sungai Petani, Kedah, Malaysia. Email: mlhbr97@gmail.com.

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title In force from Repealed Superseded
ACT 887 Statistics Act 2026 Not Yet In Force - -
ACT 886 The Titular Superior of The Institute of The Marist Brothers of The Schools (Incorporation) Act 1958 (Revised—2026) 30 September 2026 revised edition pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1]; Revised up to 28 September 2026; First enacted in 1958 as Ordinance No 54 of 1958 - -
ACT 885 National Trust Fund Act 2026 Not Yet In Force - -
ACT 884 Johor Bahru-Singapore Rapid Transit System Link Act 2026 Not Yet In Force - -
ACT 883 Records (Disposal) (Sarawak) Act 1955 (Revised—2026) 15 June 2026 revised edition pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1]; Revised up to 5 June 2026; First enacted in 1955 as Sarawak Ordinance No 14 of 1955; First Revision - 1958; First Reprint - 1966 - -

Amending Acts

Number Title In force from Principal/Amending Act No
ACT A1801 Competition Commission (Amendment) Act 2026 Not Yet In Force ACT 713
ACT A1800 Competition (Amendment) Act 2026 Not Yet In Force ACT 712
ACT A1799 Malaysian Communications and Multimedia Commission (Amendment) Act 2026 14 October 2026 [PU(B) 418/2026] ACT 589
ACT A1798 Communications and Multimedia (Amendment) Act 2026 14 October 2026 [PU(B) 417/2026] ACT 588
ACT A1797 Witness Protection (Amendment) Act 2026 Not Yet In Force ACT 696

PU(A)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(A) 372/2026 Entertainments Duty (Exemption) (No. 36) Order 2026 28 October 2026 29 October 2026 ACT 103
PU(A) 371/2026 Service Tax (Digital Services) (Amendment) Regulations 2026 27 October 2026 28 October 2026 PU(A) 269/2019
PU(A) 370/2026 Income Tax (Deduction For Expenditure In Relation To Cost of Renovation and Conversion of Office Premise To Residential House) Rules 2026 27 October 2026 Year of assessment 2026 ACT 53
PU(A) 369/2026 Entertainments Duty (Exemption) (No. 35) Order 2026 26 October 2026 27 October 2026 ACT 103
PU(A) 368/2026 Companies (Amendment of Fourth Schedule) Order 2026 26 October 2026 30 October 2026 ACT 777

PU(B)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(B) 433/2026 Notice To Third Parties 22 October 2026 23 October 2026 ACT 613
PU(B) 432/2026 Notice Regarding The Certification and Inspection of The Supplementary Electoral Roll For The Month of September 2026 22 October 2026 23 October 2026 PU(A) 293/2002
PU(B) 431/2026 Notification of Value of Palm Kernel Under Section 12 20 Oktober 2026 1 November 2026 to 30 November 2026 ACT 235
PU(B) 430/2026 Notice To Third Parties 19 October 2026 20 October 2026 ACT 613
PU(B) 429/2026 Fatwa Under Section 34 19 October 2026 20 October 2026 ACT 505

Legislation Alert

Updated

Act/Principal No. Title Amended by In force from Section amended
PU(A) 269/2019 Peraturan-Peraturan Cukai Perkhidmatan (Perkhidmatan Digital) 2019 PU(A) 371/2026 28 Oktober 2026 Peraturan 16
PU(A) 269/2019 Service Tax (Digital Services) Regulations 2019 PU(A) 371/2026 28 October 2026 Regulation 16
AKTA 777 Akta Syarikat 2016 PU(A) 368/2026 30 Oktober 2026 Jadual Keempat
ACT 777 Companies Act 2016 PU(A) 368/2026 30 October 2026 Fourth Schedule
AKTA 333 Akta Pengangkutan Jalan 1987 AKTA A1794 16 Oktober 2026 [PU(B) 427/2026] Seksyen 2, 4A, 9, 10, 14, 15, 16, 17, 20, 26, 29, 32, 40, 42A, 52, 53B, 54, 59, 66, 66A, 66H, 66J, 72, 76A, 79, 102, 108, 109, 110B, 112, 117, 118, 119, 119B, 119C, 120, 126, 126A, 127 dan Jadual Ketiga

Revoked

Act/Principal No. Title Revoked by In force from
PU(A) 303/1999 Occupational Safety and Health (Prohibition of Use of Substance) Order 1999 PU(A) 359/2026 15 October 2027
PU(A) 500/2000 Income Tax (Exemption) (No. 53) Order 2000 PU(A) 355/2026 Year of assessment 2026 to the year of assessment 2027
PU(A) 93/2026 Perintah Mesin Cetak Dan Penerbitan (Kawalan Hasil Penerbitan Tidak Diingini) (No. 12) 2026 [Dibatalkan Oleh PU(A) 266/2026] PU(A) 266/2026 17 July 2026
PU(A) 93/2026 Printing Presses and Publications (Control of Undesirable Publications) (No. 12) Order 2026 [Revoked By PU(A) 266/2026] PU(A) 266/2026 17 July 2026
PU(A) 69/2026 Printing Presses and Publications (Control of Undesirable Publications) Order 2026 [Revoked By PU(A) 265/2026] PU(A) 265/2026 17 July 2026

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