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Issue #51/2024
19 December 2024
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CASE SPOTLIGHTS
INSTITUT INTEGRITI MALAYSIA v. ROZIAH HARUN & ANOR [2024] 10 CLJ 894 (i) The Industrial Court lacks jurisdiction to hear and determine cases involving employees of Government agencies. A Government agency, as defined by relevant statutory provisions, is an entity established or controlled by the Government, performing public roles and functions and subject to Governmental oversight; (ii) A jurisdictional objection under s. 52 of the Industrial Relations Act 1967, which can be raised through an application under s. 29(fa) of the same Act, is a procedural matter, and the choice of procedure depends on the circumstances of the case. INDUSTRIAL COURT: Jurisdiction - Jurisdictional objection - Institute incorporated under Companies Act 1965 - Claimant dismissed from employment at Institute due to allegations of serious misconduct - Director General of Industrial Relations ('DGIR') referred claimant's representation to Industrial Court - Whether Industrial Court had jurisdiction to hear and determine matter - Whether Institute a Government agency and within ambit of s. 52 of Industrial Relations Act 1967 ('IRA') - Whether jurisdictional objection based on s. 52 may be taken up by way of application to Industrial Court under s. 29(fa) of IRA - Whether Institute ought to have filed judicial review to quash decision of DGIR to refer claimant's representation to Industrial Court ADMINISTRATIVE LAW: Judicial review - Appeal - Institute incorporated under Companies Act 1965 - Claimant dismissed from employment at Institute due to allegations of serious misconduct - Director General of Industrial Relations referred claimant's representation to Industrial Court - Industrial Court struck out case due to lack of jurisdiction - Award of Industrial Court quashed by High Court - Whether Industrial Court had jurisdiction to hear and determine matter - Whether Institute a Government agency and within ambit of s. 52 of Industrial Relations Act 1967 STATUTORY INTERPRETATION: Definition - 'Government agency' - Claimant dismissed from employment at Institute due to allegations of serious misconduct - Director General of Industrial Relations referred claimant's representation to Industrial Court - Industrial Court struck out case as Institute a Government agency - Whether Institute a Government agency according to relevant statutory interpretations APPEAL UPDATES
LATEST CASESLegal Network Series
CLJ 2024 Volume 10 (Part 5) (i) While both civil and criminal proceedings may arise from insider trading under the Securities Industry Act 1983, they serve distinct purposes and have different consequences. Civil actions aim to deter insider trading and restore market integrity, while criminal proceedings focus on punishing the offender. The Securities Commission has the authority to initiate civil proceedings arising from insider trading without the Attorney General's consent; (ii) The requirement of 'improper use' of insider information has been relaxed. The mere possession and trading on insider information is sufficient to constitute a violation. SECURITIES
SECURITIES: Shares - Insider trading - Lawyer appointed by bank with respect to corporate exercise of privatisation of listed company - Lawyer bought two tranches of shares in listed company - Shares disposed of after public announcement when queried by officials - High Court ordered lawyer to pay three times gains made on disposal of impugned shares plus penalty of RM1 million and disqualification from being director of public-listed company for ten years - Whether consent of Attorney General necessary before commencement of civil proceeding arising from insider trading - Whether lawyer in possession of information not generally available when shares acquired - Whether not generally-available information price-sensitive - Whether on becoming generally available, reasonable person would expect it to have material effect on price of shares - Whether 'improper use' proven - Securities Industry Act 1983
Lee Swee Seng JCA
(i) A specific written and signed reference to the account, admission of outstanding debt and proposal to settle constitute an acknowledgment of debt and the accrual of the right of action shall commence from the date of such acknowledgment; (ii) When a party is aggrieved by an order for sale, he must appeal under s. 418 of the National Land Code. A subsequent suit seeking to declare the order for sale complained about null and void is misconceived; (iii) The successful bidder in a public auction is entitled to compensation for the acquired land. Allegations of impropriety require cogent evidence to be substantiated as mere suspicion is insufficient; (iv) A valuer appointed by a chargee bank does not owe a duty of care to the chargor. The chargor may appoint his own valuer if he disagrees with the valuation; (v) The Land Administrator has the discretion to reject an application to postpone an auction, even if the same is submitted within the stipulated time. LIMITATION | LAND LAW
LIMITATION: Action - Right of action - Accrual - Acknowledgment of debt - Land charged as security to overdraft facilities - Borrower defaulted in repayment of facilities - Land foreclosed and ordered to be sold at public auction - Whether proceedings for order for sale time-barred - Letter by debtor to bank contained specific reference to account of borrower, admission that account was outstanding and proposal to settle - Whether letter amounted to unequivocal acknowledgment of debt - Whether right of action accrued on or before date of acknowledgment - Whether requirements of ss. 26(2) and 27 of Limitation Act 1953 fulfilled - Computation of 12-year period - Whether order for sale applied within applicable limitation period LAND LAW: Foreclosure - Order for sale - Land charged as security to overdraft facilities - Borrower defaulted in repayment of facilities - Bank applied for foreclosure and order for sale of land - Land gazetted for compulsory acquisition prior to public auction - Land foreclosed and ordered to be sold at public auction - Successful bidder awarded compensation - Allegations of impropriety and questionable motives - Whether foreclosure action commenced by bank time-barred - Whether order for sale and public auction null and void in view of land acquisition proceedings - Whether enquiry to determine compensation nullity - National Land Code, ss. 254, 261, 264 & 418 - Land Acquisition Act 1960, s. 9 - Limitation Act 1953, ss. 26(2) & 27 LAND LAW: Foreclosure - Order for sale - Public auction - Application for postponement of auction rejected by Land Administrator - Discretion of Land Administrator - Whether Land Administrator can reject application - National Land Code, s. 264(1) & (2) LAND LAW: Malay reservations - Valuation - Valuation report for purpose of foreclosure proceedings - Chargee bank appointed valuer - Method of valuation adopted - Comparison method - Whether status of Malay Reserve Land would be taken into account in valuation for purpose of compulsory acquisition - Whether claim in negligence could be made against valuer in preparation of valuation report - Whether valuation of land credible and in accordance with prevailing market value
Alice Loke Yee Ching J (Writ Summons No: BA-21NCVC-36-06-2019)
(i) An insurer has the right of subrogation, which allows it to step into the shoes of the insured and claim against a third party who caused the loss. This right is not affected by a settlement between the insured and the third party; (ii) A contract of bailment arises when one person (bailor) delivers goods to another (bailee) for a purpose, with the understanding that the goods will be returned or disposed of as agreed. In a bailment relationship, the bailee has a duty of care to ensure that the bailed goods are returned in the same condition as when they were delivered, or in a better condition. This duty extends to taking reasonable steps to prevent damage or loss, even due to accidental causes. If a bailee fails to exercise reasonable care and the bailed goods are damaged or lost, the bailee is liable to the bailor or the insurer who has stepped into the bailor's shoes through subrogation. INSURANCE | CONTRACT
INSURANCE: Claim - Subrogation - Car owner/insured sent motorcar for repair at workshop - Fire occurred at workshop and car owner's car declared as total loss - Car owner incurred losses - Car owner claimed under insurance policy and paid by insurer - Car owner compensated by workshop - Insurer commenced action based on subrogation against workshop - Whether subrogation claim valid - Whether car owner had locus standi to commence proceedings - Whether there was right of subrogation to insurer - Whether car owner waived any claims against workshop having entered into settlement and receiving compensation CONTRACT: Bailment - Bailment contract - Car owner/insured sent motorcar for repair at workshop - Fire occurred at workshop and car owner's car declared as total loss - Car owner incurred losses - Whether there was bailment contract - Whether there was bailor-bailee relationship between parties - Whether workshop owed duty of care as bailee - Whether workshop, as bailee, had dispensed duty of care in taking all reasonable and/or precautionary steps to prevent fire from spreading to premises to salvage vehicles - Contracts Act 1950, ss. 101, 102, 104, 105, 113 & 114
Arziah Mohamed Apandi JC
The approval by a director of an increase in management fees, may be temporary and may not necessarily bind the director to approve future increases without justification. The director may request justification for the fees even if he had previously approved an increase. Further, a delay in challenging the said fees could not be said to be unreasonable if the director has made unrelenting efforts to obtain justification for the fees before turning to litigation as a final resort. When a director makes a request for the documents related to the justification for the management fees, such attempt is not necessarily an attempt to access privileged information, especially if the documents are mere routine commercial records. COMPANY LAW
COMPANY LAW: Derivative action - Leave - Application by director ('applicant') on behalf of company - Dispute on quantum of monthly management fees paid by company to holding company - Whether test for leave to commence derivative action satisfied - Whether applicant acted in good faith - Whether application prima facie in best interest of company for leave to be granted - Whether applicant established honest belief that good causes of action existed with reasonable prospects of success - Whether applicant estopped from going back to agreement to increase management fees - Whether inordinate and unreasonable delay on part of applicant in pursuing action - Whether derivative action abuse of process - Whether would give rise to multiplicity of proceedings - Whether would cause company to adopt contradictory position to one taken in another suit - Companies Act 2016, ss. 347 & 348
Atan Mustaffa Yussof Ahmad J
Information that is considered confidential in a company is protected by law, even if it is not exclusively accessed by a limited number of employees. Employees who have access to such confidential information due to their position and employment contracts have a duty of confidentiality. If they misuse or disclose this information without authorisation, they may be liable for breach of confidence, breach of fidelity, conspiracy to injure and unlawful interference with trade. TORT
TORT: Breach of confidence - Disclosure of confidential information and trade secrets - Tortfeasors worked for company for substantial number of years - Tortfeasors each given access to company's confidential information and trade secrets - Tortfeasors resigned from company and joined competitor - Tortfeasors wrongly accessed and downloaded company/ex-employer's confidential information without consent and wrongfully removed and retained them for use at competitor company - Whether allegations of breaches of confidence and fidelity proven TORT: Conspiracy - Conspiracy to injure - Disclosure of confidential information and trade secrets - Tortfeasors worked for company for substantial number of years - Tortfeasors each given access to company's confidential information and trade secrets - Tortfeasors resigned from company and joined competitor - Tortfeasors wrongly accessed and downloaded company/ex-employer's confidential information without consent and wrongfully removed and retained them for use at competitor company - Whether there was conspiracy to injure company/ex-employer TORT: Unlawful interference - Unlawful interference with trade - Disclosure of confidential information and trade secrets - Tortfeasors worked for company for substantial number of years - Tortfeasors each given access to company's confidential information and trade secrets - Tortfeasors resigned from company and joined competitor - Tortfeasors wrongly accessed and downloaded company/ex-employer's confidential information without consent and wrongfully removed and retained them for use at competitor company - Whether there was unlawful interference with trade TORT: Defamation - Counterclaim - Disclosure of confidential information and trade secrets - Tortfeasors worked for company for substantial number of years - Tortfeasors each given access to company's confidential information and trade secrets - Tortfeasors resigned from company and joined competitor - Tortfeasors wrongly accessed and downloaded company/ex-employer's confidential information without consent and wrongfully removed and retained them for use at competitor company - Ex-employer obtained injunctive reliefs against tortfeasors - Counterclaim by tortfeasors against ex-employer - Whether there was underlying intention and ulterior motive of embarrassing and defaming tortfeasors
Azlan Sulaiman JC
ARTICLESLNS Article(s)
LEGISLATION HIGHLIGHTSPrincipal Acts
Amending Acts
PU(A)
PU(B)
Legislation Alert Updated
Revoked
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