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Issue #15/2026
09 April 2026

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CASE SPOTLIGHTS

PUNCAK GALI HARMONI SDN BHD v. EMRAIL SDN BHD [2026] 4 CLJ 151
HIGH COURT MALAYA, SHAH ALAM
ANITA HARUN JC
[ORIGINATING SUMMONS NO: BA-24NCC(ARB)-7-09-2025]
24 NOVEMBER 2025

The moratorium under s. 410(c) of the Companies Act 2016 ('CA') applies to all forms of judicial process, whether interlocutory, ancillary or substantive in nature. The legislative intent of s. 410(c) of the CA is to preserve the status and assets of the company under judicial management from any legal process, regardless of whether it arises from litigation or arbitration. As this moratorium is mandatory and operates immediately upon the filing of the judicial management application, no proceedings may be commenced or continued without the leave of the court.

CIVIL PROCEDURE: Injunction - Ex parte injunction - Company under judicial management proceeding - Effect of - Whether moratorium under s. 410(c) of Companies Act 2016 mandatory - Whether operates immediately upon filing of judicial management application - Whether proceeding may only be commenced with judicial management court - Whether failure to obtain leave constitutes jurisdictional defect - Whether injunction application incompetent and liable to be struck out

CONTRACT: Business and schemes - Judicial management order - Application for injunction pending judicial management proceeding - Whether moratorium under s. 410(c) of Companies Act 2016 mandatory - Whether operates immediately upon filing of judicial management application - Whether proceeding may only be commenced with judicial management court - Whether failure to obtain leave constitutes jurisdictional defect - Whether injunction application incompetent and liable to be struck out


JUDICIAL QUOTES

“Both counsel brought to bear considerable industry and skill in navigating what is, at its heart, a modest domestic dispute but one which raised questions of some technical and statutory complexity. Their written and oral submissions were thorough and well-crafted, their cross-examinations were pointed without being discourteous, and the quiet wit that each occasionally introduced into the proceedings, not least when this Court itself had cause to observe the alarming pace of inflation in kitchen cabinet prices and the law of Newton's physics, served as a timely reminder that the pursuit of justice need not always be a humourless endeavour. This Court is grateful for their assistance.” - Per Roz Mawar Rozain J in Leng Wie Mun v. Saeed Ali Magad [2026] CLJU 663

APPEAL UPDATES

  1. Safuan Safri Saifulbahri lwn. PP & Rayuan Yang Lain [2025] CLJU 3376 mengesahkan kes Mahkamah Tinggi Safuan Safri Saifulbahri lwn. PP [2024] CLJU 3275

  2. Desa Tiasa Sdn Bhd v. CME Group Bhd & Anor [2025] CLJU 3387 overruling the High Court case of Desa Tiasa Sdn Bhd v. CME Group Bhd; Bellajade Sdn Bhd (Intervener) [Saman Pemula No: BA-28JM-6-08/2022]

LATEST CASES

Legal Network Series

[2025] CLJU 320

HONG CHING CHIEW v. PHAN SOW SUN

It is not possible for a defence to be filed on or before a date directed by the court as the defendant, having the status as a bankrupt, has not obtained the sanction from the Department of Insolvency to be represented by a firm of solicitors for purposes of defending himself in the action which was commenced by the plaintiff, more so when the need for such a sanction was acknowledged by the plaintiff's solicitors themselves during the earlier proceedings. In such circumstances, there is no basis for the plaintiff to file application for judgment in default of defence against the defendant before the defendant could obtain sanction from the Department of Insolvency.

CIVIL PROCEDURE: Default judgment - Default of defence - Action premised on tort of defamation - Writ and statement of claim served via WhatsApp - Memorandum of appearance filed - Bankrupt defendant - Whether defendant failed to serve defence within time directed by court - Whether cause papers deemed served on defendant - Whether possible for defendant to file defence before obtaining sanction from Department of Insolvency to be represented by solicitors

  • For the plaintiff - Ng Shawn; M/s Liew & Partners
  • For the defendant - Mohamad Shafiq Samsudin; M/s Shafiq Samsudin & Co

[2025] CLJU 324

XTREME MERIDIAN SDN BHD v. MUHAMAD AMAR AMIR & ANOR

1. When a developer fails to deliver vacant possession within the stipulated time frame, the calculation of liquidated ascertained damages must commence from the date of payment of the booking fee. It is indefensible for the developer to characterize the initial payment as a stakeholder sum rather than a booking fees.

2. There was no provision within the Housing Development (Control and Licensing) Act 1966 or its Regulations that conferred authority on the Deputy Controller of Housing to modify or alter the terms of statutory agreements prescribed by the Minister. Any such act would be beyond the scope of lawful authority and therefore be invalid. It follows, the Deputy Controller of Housing has no power to extend the completion period from 36 months to 48 months. Granting of such extension is invalid as it contravened the statutory framework governing such extensions and it further failed to comply with the mandatory procedural and substantive requirements prescribed by law.

LAND LAW: Housing developers - Late delivery of vacant possession - Claim for liquidated ascertained damages ('LAD') - Validity of extension of time granted by Deputy Controller of Housing ('DCH') - Dispute as to issuance of certificate of completion and compliance ('CCC') - Whether calculation of LAD from date of booking fee accurate - Whether extension of time granted by DCH contravened statutory framework governing such extensions - Whether LAD should be calculated based on discounted purchase price - Whether developer estopped from relying on discount given to reduce calculation of LAD - Whether CCC defective

  • For the appellant - Andrew Davis & Zaitul Naziah; M/s Andrew Davis & Co
  • For the respondent - Viola De Cruz & Claudia Silva; M/s V L Decruz & Co

[2026] CLJU 13

PP v. SITI ROHIYA MOKHTAR & ORS

1. Section 311 of the Criminal Procedure Code empowers the Court below or a judge to stay the execution of any judgment, order, conviction or sentence pending appeal. Such a stay may be granted on terms as to security as appear reasonable. The permissible terms of security relate to specific matters. These include the payment of any money, the performance of any act, the non-performance of any act or the suffering of any punishment. It follows striking out of a forfeiture of property application instituted under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 is not a judgment, order, conviction or sentence whose execution is capable of being stayed under s. 311 of CPC.

2. The legal lifespan of a seizure order under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 is twelve months. This duration is prescribed by statute. It carries a built-in expiry. If the public prosecutor fails to obtain a forfeiture order within that period, the seizure lapses by operation of law. If stay of execution is granted, it would, in substance, extend a statutory time limit. That is an act beyond the power of the Court when the statute itself provides no mechanism for any extension.

CRIMINAL PROCEDURE: Stay of execution - Stay pending appeal - Stay of release of seized properties following striking out of forfeiture application instituted under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 ('AMLATFPUAA') - Forfeiture application  struck out as prosecution failed to comply with court's directions - Whether stay application properly made pursuant to s. 311 of Criminal Procedure Code- Whether striking out order capable of being stayed - Whether stay of execution would extend statutory time limit for prosecution to obtain  forfeiture order - Whether stay application resulted to  infringement of constitutional rights to property protected under art 13 of Federal Constitution - Whether seizure order reached its statutory demise by operation of s. 52A of AMLATFPUAA

  • For the appellant - DPP Nurul Wahida Jalaluddin; Seremban State Prosecution
  • For the respondents - Nur Khaliesa Abdillah; M/s Seow & Megat

[2026] CLJU 4

CHRISTIAN ANDREAS HASSING lwn. TAN HOOI LENG

Suatu laporan polis yang dibuat oleh seseorang adalah merupakan keistimewaan mutlak bagi suatu tindakan fitnah. Adalah bercanggahan dengan kepentingan awam untuk seseorang yang membuat laporan polis terdedah kepada tindakan fitnah. Isu berkenaan keistimewaan mutlak berkaitan dengan laporan polis boleh diputuskan pada peringkat permohonan pembatalan writ saman dan penyataan tuntutan.

PROSEDUR SIVIL: Pembatalan - Tindakan - Tort fitnah - Permohonan deklarasi penahanan tidak sah - Tindakan berhubung dakwaan pelanggaran kebebasan diri - Ketiadaan kausa tindakan - Sama ada laporan polis merupakan keistimewaan mutlak bagi tindakan fitnah - Sama ada tindakan plaintif jelas berhubung tort fitnah - Sama ada isu keistimewaan mutlak boleh diputuskan tanpa bicara penuh - Sama ada defendan wajar dinamakan pihak dalam tindakan - Sama ada remedi yang dipohon plaintif sah

  • Bagi pihak plaintif - Lavanesh Haresh Mahadevan & Fatin Syazwana Saizul Sofian; T/n Haresh Mahadevan & Co
  • Bagi pihak defendan - Gideon Tan & Joanne Ng Zhao Way; T/n Gideon Tan Razali Zaini

[2026] CLJU 11

NAJWAN SABRI lwn. MOHAMMAD AJUWAD AHMAD RASHIDI & SATU LAGI

Gantirugi khas kehilangan pendapatan hendaklah dibuktikan oleh plaintif di atas imbangan kebarangkalian. Suatu tuntutan gantirugi kehilangan pendapatan wajar ditolak apabila plaintif gagal mengemukakan keterangan secara lisan atau dokumentar yang menunjukkan plaintif mempunyai pendapatan yang tetap dan disokong keterangan majikan secara dokumen berkenaan jumlah pendapatan yang diperoleh oleh plaintif.

GANTI RUGI: Rayuan - Kehilangan pendapatan - Kehilangan pendapatan masa hadapan - Gantirugi khas - Ketiadaan bukti dokumen - Sama ada kegagalan majikan mengemukakan dokumen sokongan pembayaran gaji memudaratkan kes plaintif - Sama ada mahkamah di peringkat rayuan boleh menolak tuntutan gantirugi khas yang tidak diplidkan

  • Bagi pihak plaintif/perayu - Noor Azizah Abdullah; T/n Azhar & Fazuny
  • Bagi pihak defendan/responden - Ahmad Zuhairi Ahmad & Pu'aat; T/n Kenneth William & Associates

CLJ 2026 Volume 3 (Part 5)

(i) Article 4(2) of the Federal Constitution ('FC') does not derogate from art. 4(1) of the FC in establishing the FC as the supreme law of the Federation. As such, constitutional supremacy remains the cornerstone of the FC. What art. 4(2) of the FC does, however, is to limit the ability of the courts to question or challenge Parliament's intention or judgment that any restriction imposed on the right to freedom of speech and expression under art. 10(1)(a) of the FC was 'necessary or expedient' for the specified grounds set out in art. 10(2)(a) of the FC. This means that it is open to a court to still judicially review the impugned legislation to ascertain whether it falls within those specified grounds set out in art. 10(2)(a) of the FC and referenced in art. 4(2) of the FC; (ii) The words 'offensive' and 'annoy' in s. 233(1)(a) of the Communications and Multimedia Act 1998 are not unconstitutional, in that, the impugned words (a) do not contravene art. 10(1)(a) of the FC; and (b) fall within the purview of a permitted restriction under art. 10(2)(a) of the FC.
The Government Of Malaysia v. Heidy Quah Gaik Li [2026] 3 CLJ 677 [FC]

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CONSTITUTIONAL LAW: Fundamental liberties - Freedom of speech and expression - Social media posting - Social media user charged with making and initiating transmission of offensive comments with intent to annoy others - Offence under s. 233(1)(a) of Communications and Multimedia Act 1998 ('CMA') - Challenge to constitutionality of s. 233(1)(a) of CMA - Interpretation of art. 4(1) read together with art. 4(2) of Federal Constitution ('FC') - Whether words 'offensive' and 'annoy' inconsistent with arts. 10(1)(a) and 10(2)(a) of FC - Whether words fell within permitted restrictions

CONSTITUTIONAL LAW: undamental liberties - Freedom of speech and expression - Restriction - Social media user charged with making and initiating transmission of offensive comments with intent to annoy others - Offence under s. 233(1)(a) of Communications and Multimedia Act 1998 ('CMA') - Challenge to constitutionality of s. 233(1)(a) of CMA - Scope of art. 10(1)(a) of Federal Constitution - Whether statements of fact and opinions on public health conditions protected speech

CYBER LAW: Improper use of network facilities - Social media posting - Offensive speech in social media posting - Social media user charged with making and initiating transmission of offensive comments with intent to annoy others - Offence under s. 233(1)(a) of Communications and Multimedia Act 1998 - Whether impugned words 'offensive' and 'annoy' constitutional - Whether consistent with art. 10(1)(a) of Federal Constitution

STATUTORY INTERPRETATION: Construction of statutes - Communications and Multimedia Act 1998, s. 233(1)(a) - Interpretation of 'offensive' and 'annoy' - Application of 'core-penumbra' narrowing construction - Whether focus should be on mens rea rather than actus reus - Whether provision criminalises situational intent rather than content

WORDS & PHRASES: 'offensive' and 'annoy' - Meaning of - Offensive comments - Social media user charged with making and initiating transmission of offensive comments with intent to annoy others - Offence under s. 233(1)(a) of Communications and Multimedia Act 1998 - Whether impugned words constitutional

Wan Ahmad Farid Salleh CJ
Nallini Pathmanathan FCJ
Che Mohd Ruzima Ghazali FCJ
Nazlan Mohd Ghazali FCJ
Collin Lawrence Sequerah FCJ

  • For the appellant - Liew Horng Bin & Shamsul Bolhassan; SFCs
  • For the respondents - Malik Imtiaz Sarwar, New Sin Yew, Surendra Ananth, Nur Izni Syazwani Ahmad, Lim Yvonne & Abby Si Xin Yi; M/s AmerBON
  • For the intervener (MCMC) - Benjamin John Dawson, Kresha Paskaren & Nor Syazana Jamaluddin; M/s Benjamin Dawson
  • Amicus Curiae (SUARAM, CFJ & IBAHRI) - Lim Wei Jiet & Nevyn Vinosh Venudran; M/s Lim Wei Jiet
  • Amicus Curiae (Malaysian Bar Council) - K Shanmuga & Kee Hui Yee; M/s Kanesalingam & Co

Apabila notis Borang 7A telah dikeluarkan secara sah, bawah s. 128 Kanun Tanah Negara ('KTN'), dan pemilik tanah gagal mematuhi atau memperbaiki pelanggaran tersebut dalam tempoh yang ditetapkan, Pentadbir Tanah mempunyai kewajipan undang-undang untuk mengeluarkan notis Borang 7B. Tindakan tersebut bukan satu budi bicara mutlak tetapi satu tatacara mandatori yang ditetapkan oleh s. 129 KTN.
Falcon Unigreen Sdn Bhd lwn. Pentadbir Tanah, Daerah Johor Bahru & Satu Lagi [2026] 3 CLJ 755 [HC]

UNDANG-UNDANG TANAH: Hak milik - Syarat nyata - Pelanggaran syarat nyata tanah - Syarat nyata menetapkan tanah harus digunakan untuk bangunan bertingkat bagi tujuan perdagangan - Tanah didapati mempunyai bengkel dan kawasan belukar - Pentadbir Tanah mengeluarkan notis Borang 7A dan kemudian notis Borang 7B pada pemohon - Sama ada tindakan Pentadbir Tanah sah dan munasabah - Sama ada notis Borang 7A dan 7B yang dikeluarkan sah dan berkuat kuasa - Kanun Tanah Negara, ss. 128 & 129

 

 

Manira Mohd Nor PK

  • Bagi pihak perayu - LM Looi, Raymond Mah & Joseph Khor; T/n Mah Weng Kwai
  • Bagi pihak defendan - Abdul Aziz, Azzam & Arief Aiman; Pejabat Penasihat Undang-undang Negeri Johor, Kota Iskandar

Dalam pengendalian kerja-kerja yang melibatkan laluan jalan raya, syarikat kontraktor sewajarnya memastikan terdapat tanda amaran diletakkan sebagai memberi peringatan kepada pengguna-pengguna jalan raya supaya berhati-hati bagi mengelakkan risiko kemalangan kerana terdapat objek atau penghadang jalan. Kegagalan berbuat demikian membawa pada dapatan bahawa syarikat kontraktor cuai dalam melaksanakan tugas berhati-hatinya. Jika risiko kemalangan di lokasi tapak projek yang dikendalikan oleh syarikat kontraktor boleh diramal dengan munasabah, dan kemalangan dan kecederaan yang dialami oleh pengguna jalan raya adalah disebabkan oleh kegagalan syarikat kontraktor melaksanakan tugas berhati-hatinya, maka pengguna jalan raya yang tercedera boleh memohon ganti rugi am dan khas. Mahkamah akan mengambil kira keseriusan kecederaan dan implikasi teruk yang berterusan.
Muhammad Amirul Ashwad Nazrul Ishsam lwn. CCP Builders Sdn Bhd & Yang Lain; Mohamad Zhafran Mohamad Taufik (Pihak Ketiga) [2026] 3 CLJ 777 [HC]

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TORT: Kecuaian - Lalu lintas jalan - Kemalangan - Motosikal pihak ketiga terlanggar penghadang jalan yang diletakkan oleh defendan pertama semasa pengendalian kerja-kerja pengorekan tanah - Plaintif sebagai pembonceng motosikal mengalami kecederaan kekal dan menjadi orang kelainan upaya - Sama ada plaintif terlibat dalam kemalangan sebagaimana diplidkan - Sama ada defendan pertama mempunyai tugas berhati-hati dalam memastikan pengguna jalan raya terlindung daripada bahaya - Sama ada defendan pertama, kedua dan ketiga cuai dalam mengendalikan penghadang jalan tanpa amaran mencukupi - Sama ada kemalangan boleh diramal dengan munasabah berlaku - Sama ada defendan kedua dan ketiga mempunyai kawalan dan penyeliaan terhadap kerja-kerja defendan pertama - Sama ada pihak ketiga cuai dalam menunggang motosikal dan mengakibatkan kemalangan - Sama ada pihak ketiga bertanggungan bersama atau cuai sumbang menyebabkan kecederaan yang dialami plaintif - Sama ada plaintif membuktikan kerugian - Sama ada plaintif berhak terhadap ganti rugi am dan khas

LALU LINTAS JALAN: Kecuaian - Kemalangan - Motosikal pihak ketiga terlanggar penghadang jalan yang diletakkan oleh defendan pertama untuk kerja-kerja pengorekan tanah - Plaintif sebagai pembonceng motosikal mengalami kecederaan kekal dan menjadi orang kelainan upaya ('OKU') - Sama ada plaintif terlibat dalam kemalangan sebagaimana diplidkan - Sama ada defendan pertama mempunyai tugas berhati-hati dalam memastikan pengguna jalan raya terlindung daripada bahaya - Sama ada defendan pertama, kedua dan ketiga cuai dalam mengendalikan penghadang jalan tanpa amaran mencukupi - Sama ada kemalangan boleh diramal dengan munasabah berlaku - Sama ada defendan kedua dan ketiga mempunyai kawalan dan penyeliaan terhadap kerja-kerja defendan pertama - Sama ada pihak ketiga cuai dalam menunggang motosikal dan mengakibatkan kemalangan - Sama ada pihak ketiga bertanggungan bersama atau cuai sumbang menyebabkan kecederaan yang dialami plaintif - Sama ada plaintif membuktikan kerugian - Sama ada plaintif berhak terhadap ganti rugi am dan khas

GANTI RUGI: Taksiran - Ganti rugi am dan khas - Kemalangan melibatkan motosikal terlanggar penghadang jalan raya yang diletakkan semasa pengendalian kerja-kerja pengorekan tanah - Plaintif mengalami kecederaan kekal dan menjadi orang kelainan upaya ('OKU') - Keseriusan kecederaan dan implikasi teruk yang berterusan dialami plaintif - Kehilangan pendapatan masa hadapan - Kos penjagaan - Kos rawatan susulan

Hazizah Kassim PK

  • Bagi pihak plaintif - Edwin Lewis; T/n Edwin Lewis
  • Bagi pihak defendan-defendan - Nassimah Shafiee; T/n Othman Hashim & Co
  • Bagi pihak ketiga - Edwin Lewis; T/n Edwin Lewis

Salary scales not issued as a result of the Government of Malaysia's salary revisions do not trigger an adjustment of pensions. Consequently, the challenge - alleging that the Government's failure to adjust the Malaysian Armed Forces pensioners' pensions in accordance with the Regular Forces (Pensions, Gratuities and Other Benefits) Regulations 1982 ('1982 Regulations') resulted in a less favourable position contravening art. 147 of the Federal Constitution - must fail. Evidence demonstrates that pension adjustments have been carried out in accordance with the 1982 Regulations. It is trite law that the precondition of a salary revision is expressly stated in the definition of 'current salary scale' under reg. 51 of the 1982 Regulations, which refers to the most recent salary scale applicable in the event of a salary revision by the Government of Malaysia.
Rafique Ali Ahmad Nordin v. Kerajaan Malaysia & Ors [2026] 3 CLJ 802 [HC]

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CIVIL PROCEDURE: Action - Mode of action - Originating summons - Action by Malaysian Armed Forces pensioners - Claim for adjustment of pensions - Whether action fell within realm of public law - Whether should have proceeded by way of judicial review - Whether challenge against decision-making processes - Whether issues related to construction of law and legal documentation - Whether action properly commenced

ADMINISTRATIVE LAW: Public servants - Pensions - Malaysian Armed Forces pensioners - Adjustment of pensions - Whether adjustment of pensions carried out in accordance with Regular Forces (Pensions, Gratuities and Other Benefits) Regulations 1982 ('1982 Regulations') - Whether pension amount revised in accordance with salary revisions under reg. 54 of 1982 Regulations - Whether amendments to terms of service of Malaysian Armed Forces after pensioners' retirement not applicable to pensioners' pension adjustment

 

Raja Ahmad Mohzanuddin Shah J

  • For the plaintiff - Abd Shukor Ahmad, Baljit Singh Sidhu & Gurpreet Kaur Pannu; M/s Shukor Baljit & Partners
  • For the defendants - Nurhafizza Azizan; SFC & Mohammad Sallehuddin Md Ali; FC

(i) While freedom of opinion and expression is guaranteed under the Federal Constitution, it must be exercised within the bounds of the law. Although freedom of speech is a constitutional right, it is subject to the laws of defamation and contempt of court. Article 10(1)(a) of the Federal Constitution is not a license to slander, profit from slander, or twist court-tendered apologies into content for sensational online videos; (ii) Failure to comply with a court order constitutes plain contempt. Once a contemnor undertakes to purge their contempt via a statement of apology, that apology must be unreserved and remorseful. Any subsequent act that repudiates the apology undermines the dignity and integrity of the court, rendering the contempt unpurged.
Tan Sri Razarudin Husain v. Wan Muhammad Azri Wan Deris [2026] 3 CLJ 830 [HC]

CIVIL PROCEDURE: Contempt of court - Committal proceedings - Proceedings based on postings on social media platforms in breach of earlier injunction against contemnor - Contemnor agreed to post apology on same social media platforms - Whether contempt purged as per court order - Whether postings of apology at unreadable speed and addition of song with intention to ridicule negated apology - Whether choice of words showed total lack of remorse - Whether insincere in apology and attempted to trick court to avoid punishment for contempt - Whether sentence ought to reflect seriousness of offence - Whether warranted sentence of imprisonment

 

 

Gan Techiong JC

  • For the plaintiff - Raam Kumar & Norleena Jamal; M/s KB Tan, Kumar & Partners
  • For the defendant - Muhammad Rafique Rashid Ali, Muhammad Amirul Ar Rasyid Azman & Nurmustanir Md Nor; M/s Law Practice of Rafique

 


CLJ 2026 Volume 3 (Part 6)

(i) A defendant cannot rely on a company's subsequent winding up to limit the period for the assessment of damages if the defendant's own breach of contract materially contributed to that company's insolvency; (ii) A liability judgment must be interpreted in the context of the compensatory principle, placing the plaintiff in the position they would have been in had the contract been performed, and in light of the original pleadings.
Perak Integrated Network Services Sdn Bhd v. PINS OSC & Maintenance Services Sdn Bhd & Anor And Other Appeals [2026] 3 CLJ 853 [FC]

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CONTRACT: Agreement - Breach - Joint venture - Management agreement for construction and maintenance of telecommunications towers - Failure to pay maintenance fees - Liability established - Assessment of quantum - Whether subsequent winding up of company limited period of assessment - Whether one company's non-payment contributed to other company's insolvency - Whether winding up avoidable event but for breach

DAMAGES: Assessment - Compensatory principle - Account and inquiry - Deductions - Management agreement for construction and maintenance of telecommunications towers - Failure to pay maintenance fees - Liability established - Assessment of quantum - Interpretation of liability judgment in light of pleadings and changed circumstances - Whether assessment should reflect gross revenue or net profit - Whether implied that all costs and expenses in earning revenue must be deducted

 

Rhodzariah Bujang FCJ
Ahmad Terrirudin Mohd Salleh FCJ
Lee Swee Seng FCJ

  • For the appellant - Gopal Sreenevasan, Villie Nethi, Saw Wei Siang & Low Yun Hui; M/s Nethi & Saw
  • For the 1st respondent - Wilson Lim Mao Shen & Huam Wan Ying; M/s Wilson Lim
  • For the 2nd respondent - Bastian Vendargon, Leong Kwong Wah, Goik Kenwayne, Gene Vendargon, Sera Foong Chui-Yeng & Vincent Lim Seng Liang; M/s Dennis Nik & Wong

A constructive trust arises by operation of law, irrespective of the intention of the parties. Under such a trust, the trustee acquires the property for the benefit of the beneficiary, making it unconscionable for him to assert his own beneficial interest in the property. The trustee cannot transfer any interest to themselves or to a third party; any appropriation of property held by way of trust and confidence constitutes a breach of trust. The aggrieved party's remedies lie in restitution.
Newlake Development Sdn Bhd v. Zenith Delight Sdn Bhd & Ors [2026] 3 CLJ 888 [CA]

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CONTRACT: Void contracts - Remedies - Sale and purchase of land - Breach - Whether there were elements of fraud and fraudulent misrepresentations - Whether vendor authorised to sell land - Whether payments dissipated by solicitors - Whether monies paid out for purposes other than towards acquisition of land - Whether solicitors breached duty of care - Whether presumption of constructive trust arose against solicitors and such trust breached - Whether contract voidable and liable to be rescinded - Whether monies paid by purchaser to be refunded

TRUSTS: Constructive trusts - Creation of - Sale and purchase of land - Whether presumption of constructive trust arose against solicitors - Whether payments dissipated by solicitors - Whether monies paid out for purposes other than towards acquisition of land - Whether solicitors breached duty of care - Whether contract voidable and liable to be rescinded - Whether monies paid by purchaser to be refunded

 

Azizah Nawawi CJ (Sabah & Sarawak)
Azizul Azmi Adnan JCA
Mohd Firuz Jaffril JCA

  • For the appellant - Gurdial Singh Nijar, Abraham Au Tian Hui, Wong Hin Loong & Lee Shao Wei; M/s HL Wong, Soh & Co
  • For the 1st & 4th respondents - Lee Kian Yuan; M/s Nekoo
  • For the 2nd & 3rd respondents - Wong Hok Mun, Eng Kar Wei & Nur Syahmina Zainal Abidin; M/s Shermal

Pure economic losses are not recoverable in tort against local authorities or professional bodies, such as the Malaysian Medical Council ('MMC'). This principle applies even when the MMC exercises its function of granting or refusing accreditation for medical degree programmes. Because the MMC performs a public regulatory role with limited resources, prioritising the private financial interests of an individual over the public interest would be unjust and inconsistent with public policy.
Asia Pacific Higher Learning Sdn Bhd v. Majlis Perubatan Malaysia & Anor [2026] 3 CLJ 910 [HC]

DAMAGES: Assessment - Quantum of - Claims for special, general, aggravated and exemplary damages - Operator of higher learning institution incurred substantial expenses during accreditation survey panel visits of its medical degree programmes - Joint Technical Committee unilaterally imposed requirements not prescribed by relevant guidelines and Malaysian Medical Council's past practices - Whether special, general, aggravated and exemplary damages ought to be awarded - Whether claims for pure economic losses ought to be allowed

 

 

Azizul Azmi Adnan J

  • For the plaintiff - Jeremiah Rais, Gerard Lourdesamy & Ananthan Moorthi; M/s Gerard Samuel & Assocs
  • For the defendants - Intan Azlina Mazlan & Norhazira Abu Haiyan; M/s Hafarizam Wan & Aisha Mubarak

Bank guarantees are, in substance and effect, performance bonds intended to secure the performance of the underlying contract between the parties. Unconscionability constitutes an independent and recognised ground upon which the court may restrain a call on the bank guarantee, provided there is manifest and strong cogent evidence of conduct that is oppressive or lacking in good faith. There must be sufficient evidence to show that the circumstances or conduct are of such a degree as to prick the conscience of a reasonable and sensible man.
Axianergy (M) Sdn Bhd v. Petronas Gas Bhd [2026] 3 CLJ 927 [HC]

CONTRACT: Guarantee - Bank guarantee - Calling on bank guarantee - Whether bank guarantee incorporated terms of letter or award and general terms and conditions of contract - Whether unconditional and payable on demand - Whether absence of terms permitting transfer of bank guarantee to third party rendered call legally unenforceable - Whether call on bank guarantee in retaliation to commencement of adjudication proceedings - Whether oppressive and lacking in good faith - Whether failure to issue notice of default and affording opportunity to rectify before calling on bank guarantee unconscionable

CONTRACT: Claims - Reimbursement - Demand for reimbursement of costs - Whether demand substantiated with evidence - Whether bare assertion that expenses incurred insufficient - Whether demand for reimbursement followed by call on bank guarantee amounted to retaliation after commencement of adjudication proceeding

 

 

Shahriza Zalina Abdul Shukor JC

  • For the plaintiff - Naveen Sri Kantha, Leong Chee Weng & Lim Suat Yee; M/s Lee & Poh Partnership
  • For the defendant - Faisal Moideen, Razeena Rahumat & Shaagita Rajenthiran; M/s Moideen & Max

(i) There is no power under the Strata Management Act 2013 ('SMA') or any other statutes for the court to remove the duties and powers of a joint management body – which has been statutorily conferred by s. 21 of the SMA – to manage and collect maintenance charges and sinking fund contributions from parcel owners. The requirement to pay maintenance charges and sinking fund contributions is not dependent on usage of common property. It is a statutory requirement for all parcel owners to pay, irrespective of whether they are owners of commercial units or residential ones within the same development area. Even unsold parcels belonging to developers are subjected to the mandatory requirement of payment of the same maintenance charges and sinking fund contributions – as could be seen in s. 25(2) of the SMA. Statutory powers for the management of strata properties under the SMA cannot be expanded or varied without an amendment to the statute itself.
Festiva Mall Sdn Bhd v. Badan Pengurusan Bersama Zetapark [2026] 3 CLJ 952 [HC]

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STRATA PROPERTY: Management corporation - Joint management body ('JMB') - Mixed development - Tripartite agreement entered between land proprietor and developers sought to preclude JMB from exercising statutory duties to maintain and manage building - Whether contravened s. 148 of Strata Management Act 2013 - Whether tripartite agreement invalid and unenforceable against JMB - Whether JMB owed statutory duty to maintain and administer common property - Whether JMB entitled to impose backcharges against plaintiff for service charges and sinking funds from date of JMB's establishment until present - Whether power to impose different rates of maintenance charges and sinking fund contributions for different components of development vested in JMB - Whether JMB empowered to collect payments of maintenance charges and sinking funds by ss. 21 and 25 of Strata Management Act 2013 - Whether barred by s. 6(1)(d) of Limitation Act 1953 - Strata Management Act 2013, s. 17(4)

STRATA PROPERTY: Management corporation - Joint management body ('JMB') - Mixed development - Claim for maintenance charges and sinking fund contributions - Rates - Whether JMB entitled to impose backcharges against plaintiff for service charges and sinking funds from date of JMB's establishment until present - Whether power to impose different rates of maintenance charges and sinking fund contributions for different components of development vested in JMB - Whether JMB empowered to collect payments of maintenance charges and sinking funds by ss. 21 and 25 of Strata Management Act 2013 - Whether barred by s. 6(1)(d) of Limitation Act 1953 - Strata Management Act 2013, s. 17(4)

CONTRACT: Agreement - Tripartite agreement - Validity of - Tripartite agreement entered between land proprietor and developers sought to preclude joint management body ('JMB') from exercising statutory duties to maintain and manage building - Whether contravened s. 148 of Strata Management Act 2013 - Whether JMB empowered to collect payments of maintenance charges and sinking funds by ss. 21 and 25 of Strata Management Act 2013 - Whether tripartite agreement invalid and unenforceable against JMB

 

Gan Techiong JC

  • For the plaintiff - Sathya Kumardas, Daud Sulaiman & Koo Jia You; M/s Shearn Delamore & Co
  • For the defendant - Samuel Tan & Nicole Wan Yee Herng; M/s Shook Lin & Bok

(i) A spouse who tolerates adultery may be aware of the adultery but refrains from taking immediate action for personal, emotional, or practical reasons. On the basis of tolerance, allowing an individual to use adultery as grounds for divorce after years of inaction would contradict the principles of justice and accountability; (ii) Spousal maintenance is typically grounded in the notion that one party is in need of support and the other has the means and, to some extent, the responsibility to provide it. A wife cannot, on one hand, assert her financial independence and the husband's lack of contribution, but on the other, claim entitlement to maintenance. Such a position lacks both legal and factual coherence; (iii) Although the nature of a child's relationship with his or her father differs from that with the mother, this distinction does not render the father's rights in respect of the child inferior to those of the mother. A child has the right to maintain an ongoing and meaningful relationship with both parents; (iv) Section 76 of the Law Reform (Marriage and Divorce) Act 1976 requires the court to assess both the financial and non-financial contributions of each party when determining the division of matrimonial assets. This assessment must be rooted in fairness, having regard to the actual contributions made by each spouse throughout the marriage. A party who has made no meaningful contribution, financial or otherwise, cannot expect to walk away with an equal share. To do so would not only offend principles of equity but would amount to a perverse reward for indolence and dishonesty.
LOB v. HOB; COB (Party Cited) [2026] 3 CLJ 976 [HC]

FAMILY LAW: Divorce - Spousal maintenance - Cause of irretrievable breakdown of marriage - Allegations of adultery and unreasonable behaviour - Whether established - Whether there was act of tolerance - Absence of timely objection or genuine distress at time events allegedly occurred - Whether past events could be weaponised as justification for breakdown of marital relationship - Means and needs test - Whether satisfied to justify amount of spousal maintenance

FAMILY LAW: Divorce - Matrimonial assets - Division - Whether parties entitled to division of assets based on respective claimed contributions - Whether there was basis to grant equal share of matrimonial assets - Principles of equity - Law Reform (Marriage and Divorce) Act 1976, s. 76

FAMILY LAW: Children - Guardianship - Custody, care and control - Whether joint guardianship and joint custody ought to be granted - Form of access - Obligation to pay child maintenance - Granting of reasonable access to child - Law Reform (Marriage & Divorce) Act 1976, ss. 88, 92 & 93 - Guardianship of Infants Act 1961, s. 3

 

 

Evrol Mariette Peters J

  • For the petitioner & party cited - James Chow, Pey Shau Xuan & Loh Zheng Feng; M/s Shang & Co
  • For the respondent - Liow Si Khoon, Adrian Chioh Jia Feng & Ting Chin Chuan; M/s Liow & Co

Beneficial owners of a property are entitled to intervene in legal proceedings that may affect their right to compensation arising from the acquisition of the land on which their property is situated. Such intervention is permissible even if they were not original parties to the proceedings, particularly when a prior order erroneously directs compensation to a party whose legal interest has been declared void.
Small Medium Enterprise Development Bank Malaysia Bhd v. Pentadbir Tanah Wilayah Persekutuan Kuala Lumpur; Zaiton Markaya & Ors (Proposed Interveners) [2026] 3 CLJ 1010 [HC]

CIVIL PROCEDURE: Intervention - Application for - Leave to intervene by beneficial owners of property on land subject to compulsory acquisition - Proposed interveners sought to set aside High Court order directing compensation be paid to chargee rather than to beneficial owners - Interveners recognised under s. 16 of Land Acquisition Act 1960 as beneficial owners - Whether leave to intervene ought to be granted - Whether issue of functus officio would bar intervention - Whether failure to file Form N fatal - Rules of Court 2012, O. 2 r. 2, O. 15 r. 6(2) & O. 92 r. 4

 

 

Avinder Singh Gill Ranjit Singh JC

  • For the applicant - Syed Fadzil & Anisatul Ashikin; M/s Sidek Teoh Wong & Dennis
  • For the respondent - Nurul Atikah; FC
  • For the proposed interveners (encl. 125) - Hazman Ahmad & Irsyad Hassan; M/s Omar Ismail Hazman & Co
  • For the proposed interveners (encls. 137 & 140) - Nik Zarith Nik Moustpha & Muhammad Amir Akmal; M/s Mohd Ashraf, Nik Zarith & Co

 


ARTICLES

CLJ Article(s)

  1. PRESS SUMMARY
    GOVERNMENT OF MALAYSIA v. HEIDY QUAH GAIK LI
    [Read excerpt]
    by Nallini Pathmanathan* [2026] 3 CLJ(A) xi

  2. [2026] 3 CLJ(A) xi
    MALAYSIA

    PRESS SUMMARY
    GOVERNMENT OF MALAYSIA v. HEIDY QUAH GAIK LI


    by
    Nallini Pathmanathan*

    Press Summary

    [1] The primary issue in this appeal is the constitutionality of the words 'offensive' and 'annoy' within s. 233(1)(a) of the Communications and Multimedia Act 1998 ('CMA'). This section criminalises any online communication which is "obscene, indecent, false, menacing or offensive in character with intent to annoy, abuse, threaten or harass another person". The respondent in this appeal, Heidy Quah, was charged under this section for uploading a Facebook post.

    [2] We wish to make it clear at the outset that, with regards to the charge filed against Heidy Quah, we are of the view that the prosecution should not have been brought against her. This is because the content of her Facebook post falls within the definition of the right to freedom of speech and expression under art. 10(1)(a) of the Federal Constitution ('FC'). It therefore cannot form the basis of a charge under s. 233(1)(a) of the CMA.

    . . .

    * Judge, Federal Court of Malaysia

LNS Article(s)

  1. LAW ALONE IS NOT ENOUGH: DOMESTIC VIOLENCE AND THE NEED FOR SYSTEMATIC SUPPORT IN MALAYSIA [Read excerpt]
    by Nurul Fatihah Abdul Mutalib[i] Nor Erfan Abang Nor Asmadi[ii] Ainul Mardhiyyah Tajudin[iii] [2026] CLJU(A) xxxiii

  2. [2026] CLJU(A) xxxiii
    MALAYSIA

    LAW ALONE IS NOT ENOUGH: DOMESTIC VIOLENCE AND THE NEED FOR SYSTEMATIC SUPPORT IN MALAYSIA

    by
    Nurul Fatihah Abdul Mutalib[i]
    Nor Erfan Abang Nor Asmadi[ii]
    Ainul Mardhiyyah Tajudin[iii]

    ABSTRACT

    Domestic violence affects over 40 million people worldwide, with severe physical, emotional, and psychological impacts. This article explores the effectiveness of Malaysia's legal framework in addressing this issue. In Malaysia, the Domestic Violence Act ('DVA 1994') was enacted to deal comprehensively with the problems of domestic violence, particularly for women. The paper aims to examine whether existing legal protections adequately safeguard victims and deter perpetrators. By analysing legal doctrinal research and case law review, the study significantly highlights the key provisions of the DVA 1994, police procedures, and the role of protection orders. Findings show that legal protection in Malaysia hinders its effectiveness, as there are some challenges, such as inadequate awareness of rights, fear, social judgment, emotional attachment and love. The article concludes by providing recommendations for accessing available support systems to enhance the protection and rehabilitation of victims.

    . . .

    [i]–[ii] Centre of Foundation Studies, Universiti Teknologi MARA, Cawangan Selangor, Kampus Dengkil, 43800 Dengkil, Selangor, Malaysia.

    [iii] Corresponding author; Centre of Foundation Studies, Universiti Teknologi MARA, Cawangan Selangor, Kampus Dengkil, 43800 Dengkil, Selangor, Malaysia. Email: ainul9561@uitm.edu.my.

  3. THE SHIELD AND THE SWORD: THE DOCTRINE OF LEGITIMATE EXPECTATION IN PROTECTING INVESTORS AND CORPORATIONS AGAINST REGULATORY VOLATILITY IN MALAYSIA* [Read excerpt]
    by Tan Guan You[i] Yeoh En En[ii] Leng Ying Ru[iii] [2026] CLJU(A) xxxiv

  4. [2026] CLJU(A) xxxiv
    MALAYSIA

    THE SHIELD AND THE SWORD: THE DOCTRINE OF LEGITIMATE EXPECTATION IN PROTECTING INVESTORS AND CORPORATIONS AGAINST REGULATORY VOLATILITY IN MALAYSIA*

    by
    Tan Guan You[i]
    Yeoh En En[ii]
    Leng Ying Ru[iii]

    ABSTRACT

    Regulatory certainty is a cornerstone of economic development, yet investors in Malaysia frequently face policy "flip-flopping" that creates significant commercial hardship. This article explores the doctrine of legitimate expectation as a vital, albeit limited, safeguard for corporations dealing with such regulatory volatility. Rooted in the principles of natural justice rather than written law, the doctrine is divided into procedural expectations, which ensure a right to be heard, and substantive expectations, which protect specific benefits based on clear official assurances.

    Through an analysis of Malaysian jurisprudence, such as the John Peter Berthelsen and MPPP cases, the article demonstrates how courts protect those who rely on lawful representations regarding licensing, permits, and tax incentives. However, this protection remains strictly conditional. The doctrine is ultimately subordinate to express statutory powers and cannot be used to tie the hands of the government when it acts in the overriding national interest. By comparing these standards with judicial trends in England, Singapore, and Canada, the article highlights a global priority for statutory operation over individual commercial interests. While the doctrine helps curb arbitrary administrative shifts, its true effectiveness depends on the precision of documented guarantees and the court's delicate balancing of private fairness against the state's freedom to govern.

    . . .

    *This article has been reviewed and endorsed by Ms Kong Xin Wei, a lecturer at the Faculty of Law, Multimedia University, Malaysia.

    [i] Third-Year law student, Faculty of Law, Universiti Kebangsaan Malaysia.

    [ii] Third-Year law student, Faculty of Law, Universiti Kebangsaan Malaysia.

    [iii] Final Year law student, Faculty of Law, Universiti Kebangsaan Malaysia.

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title In force from Repealing
ACT 880 Capitation Grant Act 2026 1 April 2026 -
ACT 878 Legal Aid and Public Defence Act 2026 Not Yet In Force - -
ACT 877 Cross-Border Insolvency Act 2026 Not Yet In Force - -
ACT 876 Anti-Bully Act 2026 Not Yet In Force - -
ACT 875 Measures for the Collection, Administration and Enforcement of Tax Act 2025 Income Tax Act 1967 [Act 53] see s 3; the Real Property Gains Tax Act 1976 [Act 169] see s 6; the Stamp Act 1949 [Act 378] see s 14; the Labuan Business Activity Tax Act 1990 [Act 445] see s 31 and the Petroleum (Income Tax) Act 1967 [Act 543] see s 41 - -

Amending Acts

Number Title In force from Principal/Amending Act No
ACT A1791 Passports (Amendment) Act 2026 Not Yet In Force ACT 150
ACT A1790 Immigration (Amendment) Act 2026 Not Yet In Force ACT 155
ACT A1789 Rukun Tetangga (Amendment) Act 2026 1 April 2026 [PU(B) 90/2026] ACT 751
ACT A1788 Employees' Social Security (Amendment) Act 2026 Not Yet In Force ACT 4
ACT A1787 Perbadanan Kemajuan Filem Nasional Malaysia (Amendment) Act 2026 Not Yet In Force ACT 244

PU(A)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(A) 77/2026 Road Traffic (Prohibition On Driving of Goods Vehicles) Rules 2026 12 February 2026 14 February 2026 ACT 333
PU(A) 76/2026 Printing Presses and Publications (Control of Undesirable Publications) (No. 5) Order 2026 11 February 2026 12 February 2026 ACT 301
PU(A) 75/2026 Printing Presses and Publications (Control of Undesirable Publications) (No. 4) Order 2026 11 February 2026 12 February 2026 ACT 301
PU(A) 74/2026 Printing Presses and Publications (Control of Undesirable Publications) (No. 3) Order 2026 11 February 2026 12 February 2026 ACT 301
PU(A) 73/2026 Price Control and Anti-Profiteering (Price Marking of Price-Controlled Goods) Order 2026 11 February 2026 13 February 2026 to 21 February 2026 ACT 723

PU(B)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(B) 123/2026 Prescription Under Section 6 31 March 2026 1 April 2026 ACT 32
PU(B) 122/2026 Appointment of Date of Coming Into Operation 30 March 2026 31 March 2026 ACT 872
PU(B) 121/2026 Appointment of Analysts 30 March 2026 1 April 2026 ACT 852
PU(B) 120/2026 Appointment of Member and Revocation of Appointment of Member of The Authority 30 March 2026 15 November 2025 ACT 231
PU(B) 119/2026 List of Insurance Licensees 30 March 2026 31 March 2026 ACT 704

Legislation Alert

Updated

Act/Principal No. Title Amended by In force from Section amended
ACT 751 Rukun Tetangga Act 2012 ACT A1789 1 April 2026 [PU(B) 90/2026] Sections 2, 3, 7, 9, 15, 17 and 23
AKTA 751 Akta Rukun Tetangga 2012 AKTA A1789 1 April 2026 [PU(B) 90/2026] Seksyen 2, 3, 7, 9, 15, 17 dan 23
PU(A) 221/2023 Peraturan-Peraturan Perbadanan Insurans Deposit Malaysia (Sistem Levi Berbeza Berkenaan Dengan Anggota Penanggung Insurans) 2023 PU(A) 60/2026 Tahun taksiran 2026 dan tahun-tahun taksiran yang berikutnya Peraturan-peraturan 2, 3 dan 8; Jadual
PU(A) 221/2023 Malaysia Deposit Insurance Corporation (Differential Levy Systems in Respect of Insurer Members) Regulations 2023 PU(A) 60/2026 Year of 2026 and subsequent assessment years Regulations 2, 3 and 8; Schedule
PU(A) 564/1996 Perintah Jalan-Jalan Persekutuan (Pengurusan Persendirian) (Pungutan Tol) (Lebuhraya Butterworth-Kulim) 1996 PU(A) 54/2026 6 Februari 2026 Perenggan 3

Revoked

Act/Principal No. Title Revoked by In force from
PU(A) 173/2022 Perintah Duti Eksais (Kenderaan Bermotor) (Bayaran) 2022 PU(A) 44/2026 1 Februari 2026
PU(A) 173/2022 Excise Duties (Motor Vehicles) (Payment) Order 2022 PU(A) 44/2026 1 February 2026
PU(A) 317/2025 Federal Roads (East Klang Valley Expressway) Order 2025 PU(A) 32/2026 26 January 2026
PU(A) 384/2021 Customs (Anti-Dumping Duties) (Administrative Review) (No. 3) Order 2021 PU(A) 24/2026 15 January 2026 to 8 October 2026
PU(A) 312/2021 Customs (Anti-Dumping Duties) (Administrative Review) (No. 2) Order 2021 PU(A) 23/2026 15 January 2026 to 19 July 2026

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