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CLJ Logo CLJ Bulletin, Issue 2014, Vol 10
07 March 2014

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New This Week

1. Cases Of The Week

a) DIRECTOR OF FOREST SARAWAK & ANOR v. TR SANDAH TABAU & ORS

2. Latest Cases

a) Legal Network Series

b) CLJ 2014 Volume 2 (Part 2)

3. Articles

a) Legal Network Series Article(s)

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASES OF THE WEEK

DIRECTOR OF FOREST SARAWAK & ANOR v. TR SANDAH TABAU & ORS
COURT OF APPEAL, PUTRAJAYA
HISHAMUDIN MOHD YUNUS JCA; ABDUL WAHAB PATAIL JCA; BALIA YUSOF WAHI JCA
[CIVIL APPEAL NO: Q-01-463-2011]
12 SEPTEMBER 2013

LAND LAW: Customary land - Right to - Native customary right - Whether common law recognised pre-existing NCR to land in Sarawak - Whether such rights could only be removed by clear and unambiguous words in legislation - Whether existing laws and proclamations only prescribed what natives might claim thereunder but did not reject pre-existing NCR to land

NATIVE LAW AND CUSTOM: Land dispute - Customary rights over land - Whether common law recognised pre-existence of native customary rights to land in Sarawak - Whether such rights could only be removed by clear and unambiguous words in legislation - Whether existing laws and proclamations only prescribed what natives might claim thereunder but did not reject pre-existing NCR to land

LATEST CASES

Legal Network Series

[2012] 1 LNS 789

PERBADANAN KEMAJUAN PERTANIAN SELANGOR v. PKPS BUKIT TINGGI FISHFARM SDN BHD

COMPANY LAW: Winding up - Petition - Statutory demand - Whether debt was due when notice of demand issued - Whether notice of demand in compliance with s. 218(2)(a) of the Companies Act 1965 and valid - Whether respondent showed it was solvent and able to pay its debt - Whether there was a bona fide dispute - Whether just and equitable to wind-up respondent pursuant to s. 218(2)(a) of the Companies Act 1965

[2012] 1 LNS 873

CODE BRILLIANT SDN BHD (DALAM PENERIMAAN DAN LIKUIDASI) & ORS v. HENG JI KENG & ORS

CIVIL PROCEDURE: Res judicata - Similar issues raised in a previous application - Issues of locus, the Debenture and the Money Lending Agreement had been raised and argued extensively in interlocutory stage and in other cases - Whether issues were res judicata and could be raised during cross examination of the affidavits filed in court for purposes of the substantive hearing - Whether issues raised during interlocutory application could be considered as res judicata for purposes of the substantive hearing

[2012] 1 LNS 955

RHB BANK BERHAD v. WEMBLEY INDUSTRIES HOLDINGS BERHAD

COMPANY LAW: Winding up - Petition - Statutory demand – Whether s. 218 notice and Petition defective for having included the limitation barred interest

COMPANY LAW: Winding up - Petition - Inability to pay debts - Whether fact that company may still have a multi-million project was relevant - Respondent failed to set aside judgment entered against them - Whether debt was a bona fide disputed debt - Whether respondent having failed to pay judgment debt, deemed to be insolvent

COMPANY LAW: Winding up - Petition - Failure to state specific limb of s. 218(1) of the Companies Act 1965, in the intitulement - Whether requirement to state limb of s. 218(1) in intitulement was a stipulation of the Companies Act 1965 and Companies (Winding-Up) Rules 1972 - Whether substantial injustice caused by failure to state sub-section 218(1)(e) in the intitulement - Whether rendered petition an embarrassing pleading - Whether Petition defective for failure to state specific limb of s. 218(1) in the intitulement

[2013] 1 LNS 146

NGO ONG CHUNG & ORS v. PENGARAH TANAH DAN GALIAN PERAK DARUL RIDZUAN

ADMINISTRATIVE LAW: Exercise of administrative powers - Jurisdiction - Defendant issued leasehold titles instead of freehold - Whether act of defendant in reducing tenure of the lands from freehold to leasehold was ultra vires the National Land Code 1965 and contravened the Federal Constitution - Whether defendant's act was without jurisdiction and void

CIVIL PROCEDURE: Limitation of action - Whether plaintiffs' application was time-barred by virtue of s. 2(a) of the Public Authorities Protection Act 1948 - Whether every act of a public authority is entitled to protection - Whether in order to get protection, an act must first be intra vires or within the power of the public authority - Whether defence of limitation under s. 2(a) of the Public Authorities Protection Act 1948 applied

CIVIL PROCEDURE: Estoppel - Whether plaintiffs were estopped from seeking prayers applied for - Whether doctrine of estoppel could be invoked so as to give an authority powers it did not possess in law - Whether consent, waiver or estoppel could prevail over principle of ultra vires

[2013] 1 LNS 395

OBC PRINTING AND PACKAGING SDN BHD v. TOPMOST STANDARD SDN BHD; NXP SEMICONDUCTORS MALAYSIA SDN BHD & ORS (GARNISHEE)

CIVIL PROCEDURE: Execution - Garnishee order - Appeal against Deputy Registrar's decision refusing to grant an order absolute against respondent - Whether respondent was bound by the terms of the Garnishee once the Order was served - Respondent releasing money directly to judgment debtor - Whether proper - Whether respondent should have sought directions from the Court - Whether respondent had breached the Orders - Whether Deputy Registrar erred when he refused appellant's application on the basis that there was no longer any money left to garnish

CLJ 2014 Volume 2 (Part 2)

COURT

COURT OF APPEAL

Abdul Hadi Ahmad lwn. PP
Abdul Malik Ishak, Azahar Mohamed, Mohd Zawawi Salleh HHMR
(Keterangan; Prosedur Jenayah - Saksi - Kegagalan pendakwaan memanggil saksi - Sama ada memudaratkan kes pendakwaan) [2014] 2 CLJ 145 [CA]

Ambank Bhd v. Chidambara Nathan MST Muthusamy & Anor
Clement Skinner, Alizatul Khair Osman, Aziah Ali JJCA
(Land Law - Charge - Order for sale - Whether cause to contrary warranting refusal of order for sale established) [2014] 2 CLJ 161 [CA]

Director Of Forest Sarawak & Anor v. TR Sandah Tabau & Ors
Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA
(Land Law; Native Law And Custom - Land dispute - Customary rights - Whether common law recognised pre-existence of native customary rights to land in Sarawak) [2014] 2 CLJ 175 [CA]

Husli Mok v. Jundar Realty Development Sdn Bhd & Anor
Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA
(Civil Procedure - Originating summons - Application to convert originating summons action to writ action) [2014] 2 CLJ 205 [CA]

Inch Kenneth Kajang Rubber Public Limited Company v. Tor Peng Sie
Abu Samah Nordin, Aziah Ali, Mah Weng Kwai JJCA
(Contract; Evidence - Breach - Claim for services rendered - Oral evidence - Admissibility of) [2014] 2 CLJ 215 [CA]

HIGH COURT

Kuwait Finance House (Malaysia) Bhd v. Messrs Mohamed Ridza & Co
Lee Heng Cheong JC
(Legal Profession; Tort - Retainer - Duties to client - Negligence) [2014] 2 CLJ 239 [HC]

Wang Su Sing v. Hj Zamari Hj Mohd Ramli & Ors
Lee Swee Seng JC
(Administrative Law; Land Law; Words And Phrases - Judicial review - Certiorari - Acquisition of land by State Authority - 'In situ') [2014] 2 CLJ 257 [HC]

SUBJECT INDEX

ADMINISTRATIVE LAW

Judicial review - Certiorari - Application for certiorari order to quash decision on acquisition - Application for prohibitory order to restrain dealings in land pending disposal of application - Whether acquisition for 'public purpose' - Land Acquisition Act 1960, s. 3(1)(a)
Wang Su Sing v. Hj Zamari Hj Mohd Ramli & Ors
(Lee Swee Seng JC) [2014] 2 CLJ 257 [HC]

CIVIL PROCEDURE

Action - Proceedings - Application to convert originating summons action to writ action - Serious allegations and disputes as to facts of case - Whether action erroneously filed by way of summons - Whether matter should be remitted to High Court to be heard de novo as writ action - Rules of the High Court 1980, O. 28 r. 8(1)
Husli Mok v. Jundar Realty Development Sdn Bhd & Anor
(Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA) [2014] 2 CLJ 205 [CA]

Originating summons - Whether appropriate - Serious allegations and disputes as to facts of case - Whether action erroneously filed by way of summons - Whether originating summons action should have been converted to writ action - Whether matter should be remitted to High Court to be heard de novo as writ action - Rules of the High Court 1980, O. 28 r. 8(1)
Husli Mok v. Jundar Realty Development Sdn Bhd & Anor
(Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA) [2014] 2 CLJ 205 [CA]

CONTRACT

Breach - Claim for services rendered - Non-payment of professional fees to real estate agent - Whether agent breached terms of letter of appointment - Terms - Construction of - Oral discussions between parties - Whether oral terms became conditions precedent to be fulfilled before agent entitled to professional fees - Whether agent failed to carry out scope of duties - Remedies - Whether agent entitled to full fees - Whether agent was “efficient cause of transaction” - Quantum meruit - Whether trial judge erred in awarding agent arbitrary sum - Whether appellate interference necessary
Inch Kenneth Kajang Rubber Public Limited Company v. Tor Peng Sie
(Abu Samah Nordin, Aziah Ali, Mah Weng Kwai JJCA) [2014] 2 CLJ 215 [CA]

EVIDENCE

Oral evidence - Admissibility of - Whether appellant could introduce oral evidence in respect of written letter of appointment - Whether oral evidence admissible under provisos (b) or (c) of s. 92 of Evidence Act 1950
Inch Kenneth Kajang Rubber Public Limited Company v. Tor Peng Sie
(Abu Samah Nordin, Aziah Ali, Mah Weng Kwai JJCA) [2014] 2 CLJ 215 [CA]

LAND LAW

Acquisition of land - Acquisition by State Authority - Land owner obtained orders for vacant possession and eviction of occupiers and squatters on land - Whether subsequent acquisition by State Authority defeated orders obtained - Whether acquisition for public purpose - Whether acquisition will have effect of allowing squatters and illegal occupiers to remain on land - Land Acquisition Act 1960, s. 3(1)(a)
Wang Su Sing v. Hj Zamari Hj Mohd Ramli & Ors
(Lee Swee Seng JC) [2014] 2 CLJ 257 [HC]

Charge - Order for sale - Opposition to - Whether validity of charge challenged - Whether Form 16D notice challenged - Whether allegation of breach of agreement sufficient to defeat ad rem rights of charge - Whether cause to contrary warranting refusal of order for sale established - National Land Code, s. 256 & 256(3)
Ambank Bhd v. Chidambara Nathan MST Muthusamy & Anor
(Clement Skinner, Alizatul Khair Osman, Aziah Ali JJCA) [2014] 2 CLJ 161 [CA]

Customary land - Right to - Native customary right - Whether common law recognised pre-existing NCR to land in Sarawak - Whether such rights could only be removed by clear and unambiguous words in legislation - Whether existing laws and proclamations only prescribed what natives might claim thereunder but did not reject pre-existing NCR to land
Director Of Forest Sarawak & Anor v. TR Sandah Tabau & Ors
(Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA) [2014] 2 CLJ 175 [CA]

LEGAL PROFESSION

Retainer - Duties to client - Whether implied term that solicitor should exercise care, skill and diligence to protect client's legal right - Whether breach of contractual duty - Whether solicitors could shift liability to client for failure to comment on draft security documents - Whether client suffered losses due to solicitor's negligence
Kuwait Finance House (Malaysia) Bhd v. Messrs Mohamed Ridza & Co
(Lee Heng Cheong JC) [2014] 2 CLJ 239 [HC]

NATIVE LAW AND CUSTOM

Land dispute - Customary rights over land - Whether common law recognised pre-existence of native customary rights to land in Sarawak - Whether such rights could only be removed by clear and unambiguous words in legislation - Whether existing laws and proclamations only prescribed what natives might claim thereunder but did not reject pre-existing NCR to land
Director Of Forest Sarawak & Anor v. TR Sandah Tabau & Ors
(Hishamudin Mohd Yunus, Abdul Wahab Patail, Balia Yusof Wahi JJCA) [2014] 2 CLJ 175 [CA]

TORT

Negligence - Professional negligence - Duty of care - Solicitor stated wrong amount in corporate guarantee - Whether negligent - Whether damages could be claimed
Kuwait Finance House (Malaysia) Bhd v. Messrs Mohamed Ridza & Co
(Lee Heng Cheong JC) [2014] 2 CLJ 239 [HC]

WORDS AND PHRASES

'In situ' - Meaning of - In its original or natural position or place - Application for relocation of squatters - Whether squatters and illegal occupiers allowed to remain in original place - Land Acquisition Act 1960, ss. 3(1)(a), 3(2)(a)
Wang Su Sing v. Hj Zamari Hj Mohd Ramli & Ors
(Lee Swee Seng JC) [2014] 2 CLJ 257 [HC]

INDEKS PERKARA

KETERANGAN

Saksi - Kegagalan pendakwaan memanggil saksi - Tertuduh disabitkan atas kesalahan mengedar dadah berbahaya - Rayuan - Sama ada kegagalan memanggil saksi penting memudaratkan kes pendakwaan - Saksi yang sepatutnya dipanggil ditangkap bersama tertuduh - Niat bersama - Sama ada usaha diambil untuk menjamin dan menentukan saksi penting memberi keterangan - Sama ada anggapan bertentangan dibangkitkan - Sama ada tertuduh diprejudis - Akta Keterangan 1950, s. 114(g)
Abdul Hadi Ahmad lwn. PP
(Abdul Malik Ishak, Azahar Mohamed, Mohd Zawawi Salleh HHMR) [2014] 2 CLJ 145 [CA]

PROSEDUR JENAYAH

Pendakwaan - Saksi - Kewajipan memanggil saksi material - Kegagalan memanggil saksi atau menawarkan saksi kepada pembelaan - Sama ada memudaratkan kes pendakwaan - Sama ada tertuduh diprejudis
Abdul Hadi Ahmad lwn. PP
(Abdul Malik Ishak, Azahar Mohamed, Mohd Zawawi Salleh HHMR) [2014] 2 CLJ 145 [CA]

ARTICLE

Legal Network Series Article(s)

1. THE REVISED GUIDELINES ON PRIVATE DEBT SECURITIES AND GUIDELINES ON SUKUK* [Read excerpt]
    by: HONG JAYEEN [2014] 1 LNS(A) xii

2. THE APPLICATION OF COMPETITION ACT 2010 TO MERGERS AND ACQUISITIONS IN MALAYSIA [Read excerpt]
    by: HANIFF AHAMAT*, NASARUDIN ABDUL RAHMAN*,
         NORHISHAM ABD BAHRIN**, MUSHERA AMBARAS KHAN***
[2014] 1 LNS(A) xiii

3. AKTA BANK ISLAM 1983: KESAMARAN PERKARA ASAS* [Read excerpt]
    by: DR NOOR INAYAH YAAKUB, FATIMAH YUSRO HASHIM** [2014] 1 LNS(A) xiv

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
ACT 761 Finance Act 2014 See s 3 for the Income Tax Act; s 33 for the Stamp Act; s 36 for the Petroleum (Income Tax) Act; s 44 for the Real Property Gains Tax Act and s 50 for the Labuan Business Activity Tax Act -Nil-
ACT 760 Fees (Department Of Museums Malaysia)
(Validation) Act 2014
1 January 1991 to 11 June 2012 -Nil-
ACT 759 Islamic Financial Services Act 2013 30 June 2013 [PU(B) 277/2013] - except para(s) 1 to 10 of Schedule 9 and para(s) 13 to 19 of Schedule 9 -Nil-
ACT 758 Financial Services Act 2013 30 June 2013 [PU(B) 276/2013] - except s 129 and Schedule 9 -Nil-
ACT 757 Strata Management Act 2013 Not Yet In Force -Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
ACT A1458 Supply Act 2014 1 January 2014
ACT A1457 Dangerous Drugs (Amendment) Act 2014 15 February 2014 ACT 234
ACT A1456 Legal Profession (Amendment) Act 2013 Not Yet In Force ACT 166
ACT A1455 Legal Profession (Amendment) Act 2012 (Amendment) Act 2013 Not Yet In Force ACT A1444
ACT A1454 Supplementary Supply (2013) Act 2013 2 November 2013

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 59/2014 Customs (Values) (Palm Oil) (No. 2) Order 2014 28 February 2014 1 March 2014 to 31 March 2014 ACT 235
PU(A) 58/2014 Petroleum (Income Tax) (Accelerated Capital Allowances) (Marginal Field) (Amendment) Rules 2014 27 February 2014 30 November 2010 PU(A) 119/2013
PU(A) 57/2014 Petroleum (Income Tax) (Exemption) (Amendment) Order 2014 27 February 2014 30 November 2010 PU(A) 122/2013
PU(A) 56/2014 Companies Commission Of Malaysia (Variation Of Percentage Of Payment To The Federal Consolidated Fund) Order 2014 27 February 2014 Financial year ending on 31 December 2012 ACT 614
PU(A) 55/2014 Local Speed Limit (Federal Roads) (West Malaysia) (Amendment) Order 2014 27 February 2014 28 February 2014 PU(A) 462/1991

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 68/2014 Appointment Under Subsection 3(1) 5 March 2014 Specified in column (3) of the Schedule ACT 115
PU(B) 67/2014 Appointment Under Subsection 3(1) 3 March 2014 Specified in column (3) of the Schedule ACT 115
PU(B) 66/2014 Appointment Of Date Of Coming Into Operation 28 February 2014 1 March 2014 ACT A1394
PU(B) 65/2014 Appointment Of Date Of Coming Into Operation 28 February 2014 1 March 2014 ACT A1394
PU(B) 64/2014 Notice Regarding The Supplementary Electoral Roll For The Fourth Quarter Of The Year 2013 That Has Been Certified 27 February 2014 28 February 2014 PU(A) 293/2002
[2014] 1 LNS(A) xii MALAYSIA

THE REVISED GUIDELINES ON PRIVATE DEBT SECURITIES AND GUIDELINES ON SUKUK*

by

HONG JAYEEN


IN THIS ARTICLE, HONG JAYEEN LOOKS AT THE REVISED GUIDELINES ON PRIVATE DEBT SECURITIES AND GUIDELINES ON SUKUK.

In tandem with the coming into force of the Capital Markets and Services (Amendment) Act 2012 ("CMSAA 2012"), the Securities Commission ("SC") issued the revised Guidelines on Private Debt Securities ("PDS") and Guidelines on Sukuk (collectively, "the Guidelines") on 28 December 2012 to incorporate and reflect the amendments effected by CMSAA 2012, and also to provide a framework for the newly introduced retail PDS and Sukuk.

The revised Guidelines overhaul and replace the previous PDS Guidelines and the Islamic Securities Guidelines respectively, both of which were issued on 12 July 2011. The revised Guidelines are now re-organised into the following four parts to enhance the clarity of the Guidelines:[1]


. . .

* Published with kind permission of M/s Shearn Delamore & Co.


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[2014] 1 LNS(A) xiii MALAYSIA

THE APPLICATION OF COMPETITION ACT 2010 TO MERGERS AND ACQUISITIONS IN MALAYSIA

by

HANIFF AHAMAT*, NASARUDIN ABDUL RAHMAN*, NORHISHAM ABD BAHRIN**, MUSHERA AMBARAS KHAN***


I. INTRODUCTION

The Competition Act 2010 of Malaysia ("CA 2010") is the first comprehensive competition policy in Malaysia. CA 2010 which was passed in June 2010 and came into force on 1 January 2012 has put an end to the piecemeal approach to competition regulation in Malaysia. To date, CA 2010 has provisions regulating market behaviour by prohibiting (1) anti-competitive agreement, and (2) abuse of dominant position. However, CA 2010 does not specifically address market structure as it lacks clearly stipulated rules controlling or prohibiting anti-competitive mergers and acquisitions.

To many, Malaysia does not need competition law that regulates market structure as yet. Economies that have not really matured may need a legal regime that is conducive for firms and companies to consolidate their market power in order to compete with foreign players on a level playing field. Some far more developed jurisdictions like the European Union ("EU") took more than 20 years to introduce a merger control regime. However, it is important to note that some neighbouring countries (ie, Indonesia and Singapore) have enforced merger control regulation prompting the question whether Malaysia is lagging behind in introducing its own merger control regulation.


. . .

* Assistant Professor, Ahmad Ibrahim Kulliyyah (Faculty) of Laws, International Islamic University Malaysia (IIUM)

** Partner, Azmi & Associates, Advocates & Solicitors, Kuala Lumpur.

*** Professor, Ahmad Ibrahim Kulliyyah (Faculty) of Laws, International Islamic University Malaysia (IIUM)


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[2014] 1 LNS(A) xiv MALAYSIA

AKTA BANK ISLAM 1983: KESAMARAN PERKARA ASAS*

by

DR NOOR INAYAH YAAKUB, FATIMAH YUSRO HASHIM**


PENGENALAN

Akta Bank Islam 1983 sebagai Akta utama yang berkaitan dengan undang-undang terhadap bank-bank Islam yang mengamalkan sistem perbankan Islam Malaysia. Terdapat lapan bahagian utama dan enam puluh seksyen dalam Akta ini. Melihat kepada peruntukan-peruntukan yang wujud dalamnya, Akta ini merupakan satu Akta berfokus untuk tujuan penubuhan, perlesenan dan pengalawan/pengawasan bank-bank Islam. Walaupun dalam bahagian II Akta ini jelas menyatakan bahawa bank-bank Islam mendapatkan nasihat daripada Majlis Penasihat Syariah berkaitan dengan isu-isu Syariah, terdapat beberapa perkara pokok dalam Akta ini yang perlu diteliti dan perlu penambahbaikan. Dalam konteks dunia yang serba teknologi ini, sebelum perbankan Islam itu menerokai dan seterusnya menguasai bidang perbankan elektronik standing dengan bank-bank konvensional, perkara-perkara asas ini perlulah dinilai dengan berhati-hati terlebih dahulu agar matlamat perlaksanaan perbankan Islam yang bebas dari riba itu tercapai. Matlamat utama kertas kerja ini akan mengupas beberapa kesamaran perkara asas yang terdapat dalam Akta ini.

PERUNTUKAN UNDANG-UNDANG YANG MENGAWAL PERBANKAN ISLAM DI MALAYSIA

Akta Bank Islam 1983 atau lebih dikenali sebagai (ABI) adalah satu Akta utama yang memperuntukkan syarat dan peraturan yang berkaitan dengan perlesenan dan penubuhan sesebuah bank Islam. Di bawah Akta ini, Bank Negara mempunyai kuasa dalam mengawal bank-bank Islam di Malaysia.


. . .

* Prosiding Seminar Kebangsaan Undang-Undang & Teknologi: Isu Undang-undang dan Syariah, 14hb September 2006, Fakulti Undang-undang, UKM. Diterbit dengan kebenaran Jawatankuasa Penerbitan Fakulti Undang-undang, Universiti Kebangsaan Malaysia.

** Fakulti Undang-undang, UKM


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