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CLJ Bulletin, Issue 2012, Vol 30
27 July 2012

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New This Week

1. Case Of The Week

KOPEKS HOLDINGS SDN BHD v. BANK ISLAM MALAYSIA BHD

2. Latest Cases

a) Legal Network Series

b) CLJ 2012 Volume 4 (Part 7)

3. Articles

a) Legal Network Series Articles

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASE OF THE WEEK

KOPEKS HOLDINGS SDN BHD v. BANK ISLAM MALAYSIA BHD
COURT OF APPEAL, PUTRAJAYA
SULAIMAN DAUD JCA, SYED AHMAD HELMY JCA, AZIAH ALI JCA
[CIVIL APPEAL NO: S-02-1480-2009]
21 FEBRUARY 2012

BANKING: Banks and banking business - Islamic banking - Al-Istisna' banking facilities - Whether facilities offered consistent with concept of Al-Istisna' Sale Agreement - Whether conditions essential for completion of transaction - Whether transaction rendered incomplete for failure to comply with conditions

CONTRACT: Agreement - Facility agreement - Offer for banking facilities - Whether subject to compliance of conditions precedent - Whether formal contract executed - Whether there was concluded contract

LATEST CASES

Legal Network Series

[2006] 1 LNS 288

ANUITI ENTERPRISE (M) SDN BHD v. CUBIC ELECTRONICS SDN BHD

CONTRACT: Termination - Right to terminate - Whether defendant had the right to terminate agreement - Whether defendant had complied with clause by terminating agreement via letter of termination

CONTRACT: Construction of terms of contract - Termination of agreement clause - Whether clauses were clear and unambiguous - Whether Court obliged to give effect to them

EVIDENCE: Extrinsic evidence - Plaintiff's counsel's attempt to refer to oral testimony of plaintiff's witnesses - Whether plaintiff had agreed to termination clause - Whether oral evidence should be considered in view of written agreement - Evidence Act 1950, ss. 91, 92

[2008] 1 LNS 201

DOLOMITE READYMIXED CONCRETE SDN BHD v. ZALAM CORPORATION SDN BHD & ORS

CIVIL PROCEDURE: Parties - Misjoinder of parties - Only 1st defendant had obtained judgment against plaintiff - Whether 1st defendant alone had capacity to present winding-up petition - Whether 2nd to 7th defendants ought not to have been made a party to this action

COMPANIES AND CORPORATIONS: Winding up - Inability to pay debts - Restraint of presentation of winding up petition - Plaintiff having a cross-claim against defendants which exceeded amount claimed in statutory notice - 1st defendant obtaining summary judgment against plaintiff - Whether 1st defendant could enforce judgment without having to wait for plaintiff's counterclaim to be adjudicated at full trial - Judgment sum paid by plaintiff into solicitor's account - Whether plaintiff had shown its ability to pay defendant's debt - Whether plaintiff ought to be wound up

[2009] 1 LNS 1654

PP v. ABDUSSAMAD

CRIMINAL LAW: Dangerous Drugs Act 1952 - s. 39B(1)(a) - Trafficking in dangerous drugs - Presumption of trafficking - Weight of drugs far exceeded statutory weight which triggered presumption - Whether irresistible inference that accused was trafficking in drugs - Whether a prima facie case made out

CRIMINAL PROCEDURE: Prosecution - Prosecution's case - Prima facie case - Possession - Whether prosecution proved physical custody of drugs in respect of first charge - Whether there was proof of possession for second charge - Whether drugs recovered in respect of both charges were dangerous drugs - Whether prosecution proved a prima facie case against accused

CRIMINAL PROCEDURE: Defence - Calling of defence of accused - Denial of knowledge of drugs - Drugs found in house and sling bag purportedly belonged to accused's friend - Landlord of house not called to testify - Existence of accused's friend not challenged by prosecution - Whether accused raised a reasonable doubt - Whether accused had knowledge of drugs

[2009] 1 LNS 1663

TAN MING YEOW v. LEAN ENG CHONG & ORS

COMPANIES AND CORPORATIONS: Oppression - Conduct amounting to oppression - Complaints of oppression by 1st, 2nd and 4th respondents in the conduct of 5th respondent's affairs - Whether 5th respondent was a quasi-partnership between petitioner and 2nd respondent - Whether 2nd respondent exercised his powers as a director in a manner oppressive to petitioner - Petitioner not served with notice of Board of Directors meeting and consequently did not attend - Whether meeting invalid - Whether all resolutions passed at meeting equally invalid

[2011] 1 LNS 413

AGRO-INDUSTRIAL SUPPLIES (M) SDN BHD & ORS v. IPMA INDUSTRY SDN BHD & ORS

COMPANIES AND CORPORATIONS: Oppression - Oppression of minority - Petitioners minority shareholders - Whether affairs of Company conducted oppressively in a manner which was unfairly prejudicial to petitioners' interests

COMPANIES AND CORPORATIONS: Oppression - Conduct amounting to oppression - Second petitioner denied access to accounting books of Company - Extraordinary General Meeting called to remove petitioners pursuant to Companies Act 1965, s. 144 - Whether matters complained of constituted a breach of fiduciary duty owed to petitioners by respondents in operation of the Company's affairs or business - If so, whether such breaches amounted to oppression or unfairness to petitioners - Companies Act 1965, s. 181(1)(a), (b)

COMPANIES AND CORPORATIONS: Oppression - Relief - Remedies available under s. 181 of Companies Act 1965 - Whether respondents should be ordered to buy out petitioners' shares

CLJ 2012 Volume 4 (Part 7)

COURT

COURT OF APPEAL

Amal Bakti Sdn Bhd & Ors v. Affin Merchant Bank (M) Bhd
Low Hop Bing, Alizatul Khair Osman, Anantham Kasinather JJCA
(Tort; Civil Procedure - Negligent misstatement - Duty of care - Whether advising bank in restructuring scheme owes duty to potential purchasers of shares) [2012] 4 CLJ 813 [CA]

Duta Wajar Sdn Bhd v. Pasukhas Construction Sdn Bhd & Anor
Hishamudin Mohd Yunus, Jeffrey Tan, Linton Albert JJCA
(Arbitration - Arbitration clause - Whether parties agreed to refer dispute to arbitration - Arbitration Act 2005, ss. 9(3) & 10) [2012] 4 CLJ 844 [CA]

HIGH COURT

Dr Quah Thong Sai v. Manonmoney Subramoney & Anor
John Louis O'Hara J
(Tort; Evidence; Civil Procedure - Medical negligence - Whether burden of proof on respondents to show that appellant failed to exercise reasonable care and skill - Whether appellant negligent) [2012] 4 CLJ 853 [HC]

Mohamad Rambli Kawi & Anor v. Khidmat Mantap Sdn Bhd & Ors
Rhodzariah Bujang JC
(Native Law And Custom - Land dispute - Whether transfer of native customary rights from Ibans to Malays is permissible by law and/or customs) [2012] 4 CLJ 864 [HC]

PP v. Mastor Ibrahim & Another Appeal
Ahmadi Asnawi J
(Criminal Law; Evidence - Corruption - Whether defence an afterthought - Whether accused under lawful arrest - Anti-Corruption Act 1997, ss. 10(a)(bb) & 42(1)) [2012] 4 CLJ 872 [HC]

Sai Kris Consultancy Sdn Bhd v. Autonas (Malaysia) Sdn Bhd
Mah Weng Kwai JC
(Company Law - Winding-up - Stay of winding-up order - Whether directors of respondent acted in breach of fiduciary duties) [2012] 4 CLJ 894 [HC]

Scandinavian Bunkering (Singapore) Pte Ltd v. MISC Bhd
Hanipah Farikullah JC
(Conflict Of Laws; Contract - Choice of law - Damages - Non-acceptance of goods by defaulting buyer) [2012] 4 CLJ 907 [HC]

SUBJECT INDEX

ARBITRATION

Arbitration clause - Existence of - Whether there was agreement in writing - Whether parties agreed to refer dispute to arbitration - Arbitration Act 2005, ss. 9(3) & 10
Duta Wajar Sdn Bhd v. Pasukhas Construction Sdn Bhd & Anor
(Hishamudin Mohd Yunus, Jeffrey Tan, Linton Albert JJCA) [2012] 4 CLJ 844 [CA]

CIVIL PROCEDURE

Appeal - Appeal against decision of Sessions Court - Whether appeal a re-hearing of the suit - Whether High Court has like powers and jurisdiction on hearing appeals as the Court of Appeal has on hearing appeals from High Court - Whether appellate court should interfere with Sessions Court's findings - Courts of Judicature Act 1964, s. 29
Dr Quah Thong Sai v. Manonmoney Subramoney & Anor
(John Louis O'Hara J) [2012] 4 CLJ 853 [HC]

Judgment - Consideration of unpleaded matters - Issues not pleaded as defences by defendants - Issues raised and decided upon by trial judge on own accord - Whether improper - Whether plaintiffs prejudiced - Whether judgment liable to be overturned on appeal
Amal Bakti Sdn Bhd & Ors v. Affin Merchant Bank (M) Bhd
(Low Hop Bing, Alizatul Khair Osman, Anantham Kasinather JJCA) [2012] 4 CLJ 813 [CA]

COMPANY LAW

Winding-up - Stay of winding-up order - Application by minority shareholders - Companies Act 1965, s. 243(1) - Respondent's failure to pay invoice - Whether invoice proved to be fictitious and fraudulent - Whether s. 218 notice and petition wrongly served at old office address - Whether respondent had due notice - Whether directors of respondent acted in breach of fiduciary duties - Whether there was conspiracy between petitioner and directors to wind-up respondent - Whether applicants failed to discharge onus to obtain order for stay
Sai Kris Consultancy Sdn Bhd v. Autonas (Malaysia) Sdn Bhd
(Mah Weng Kwai JC) [2012] 4 CLJ 894 [HC]

CONFLICT OF LAWS

Contract - Choice of law - Whether law applicable to both obligations and recoverability of damages
Scandinavian Bunkering (Singapore) Pte Ltd v. MISC Bhd
(Hanipah Farikullah JC) [2012] 4 CLJ 907 [HC]

CONTRACT

Damages - Assessment of - Non-acceptance of goods by defaulting buyer - Rule in Hadley v. Baxendale - Whether there was "available market" - Sale of Goods Act 1979 (UK), s. 50
Scandinavian Bunkering (Singapore) Pte Ltd v. MISC Bhd
(Hanipah Farikullah JC) [2012] 4 CLJ 907 [HC]

CRIMINAL LAW

Corruption - Corruptly receiving gratification - Whether accused discharged burden of proof - Whether defence were mere denials - Whether defence an afterthought - Whether presumption under s. 42(1) of the Anti-Corruption Act 1997 applied - Whether prosecution established case beyond reasonable doubt - Anti-Corruption Act 1997, ss. 10(a)(bb) & 42(1)
PP v. Mastor Ibrahim & Another Appeal
(Ahmadi Asnawi J) [2012] 4 CLJ 872 [HC]

Corruption - Offence of hindrance - Accused running away from custody - Whether delaying execution of duties of officers of Badan Pencegah Rasuah - Whether accused under lawful arrest at material time - Whether prosecution proved case against accused beyond reasonable doubt - Anti-Corruption Act 1997, s. 29(b)
PP v. Mastor Ibrahim & Another Appeal
(Ahmadi Asnawi J) [2012] 4 CLJ 872 [HC]

EVIDENCE

Burden of proof - Negligence - Appeal against decision of Sessions Court - Delivery of child conducted by appellant - Child suffered fracture of mid shaft of the right humerus and left brachial plexus injury during delivery - Whether appellant negligent - Whether burden of proof on respondents to show that appellant failed to exercise reasonable care and skill - Payremalu Veerappan v. Dr Amarjeet Kaur & Ors
Dr Quah Thong Sai v. Manonmoney Subramoney & Anor
(John Louis O'Hara J) [2012] 4 CLJ 853 [HC]

Cross-examination - Defence counsel's failure to cross-examine prosecution witnesses - Whether amounted to acceptance of testimony - Whether defence an afterthought - Whether prosecution witnesses creditworthy
PP v. Mastor Ibrahim & Another Appeal
(Ahmadi Asnawi J) [2012] 4 CLJ 872 [HC]

NATIVE LAW AND CUSTOM

Land dispute - Native customary rights - Plaintiffs claimed to have bought native customary rights land - Plaintiffs compensated by Government of Sarawak when parts of land acquired for public purpose and affected by road alignment - 1st defendant granted lease for disputed land - Whether transfer of native customary rights from Ibans to Malays is permissible by law and/or customs - Whether damages to be awarded if there was a valid transfer
Mohamad Rambli Kawi & Anor v. Khidmat Mantap Sdn Bhd & Ors
(Rhodzariah Bujang JC) [2012] 4 CLJ 864 [HC]

TORT

Negligence - Medical negligence - Appeal against decision of Sessions Court - Delivery of child conducted by appellant - Child suffered fracture of mid shaft of the right humerus and left brachial plexus injury during delivery - Whether appellant negligent - Whether burden of proof on respondents to show that appellant failed to exercise reasonable care and skill - Whether medical evidence adduced to establish delivery not conducted properly - Whether appellate court should interfere with quantum awarded - Whether Sessions Court judge erred in his decision - Payremalu Veerapan v. Dr Amarjeet Kaur & Ors
Dr Quah Thong Sai v. Manonmoney Subramoney & Anor
(John Louis O'Hara J) [2012] 4 CLJ 853 [HC]

Negligence - Negligent misstatement - Duty of care, scope and limit of - Economic loss - Test to be applied - Relationship of sufficient proximity - Whether advising bank in restructuring scheme owes duty to potential purchasers of shares - Whether bank knew its statements would be relayed to and relied on by investors - Duty to ensure accuracy of statements and independence of source - Whether duty of care discharged
Amal Bakti Sdn Bhd & Ors v. Affin Merchant Bank (M) Bhd
(Low Hop Bing, Alizatul Khair Osman, Anantham Kasinather JJCA) [2012] 4 CLJ 813 [CA]

Negligence - Negligent misstatement - Economic loss - Duty of care - Standard of care - Whether satisfied - Duty owed to share investors by advising bank in restructuring scheme - Duty to use care in making statements and announcements - Whether sufficient for bank to rely on report of due diligence working group and information given by company's directors - Whether information must be verified independently - Duty of reasonable enquiry
Amal Bakti Sdn Bhd & Ors v. Affin Merchant Bank (M) Bhd
(Low Hop Bing, Alizatul Khair Osman, Anantham Kasinather JJCA) [2012] 4 CLJ 813 [CA]

ARTICLE

Legal Network Series Articles

1. SEEKING SAFETY - THE WHOLE PICTURE [Read excerpt]
    BY: SIR NICHOLAS WALL [2012] 1 LNS(A) xliv

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
ACT 748 Malaysian Institute Of Road Safety Research Act 2012 15 July 2012
[PU(B) 219/2012]
-Nil-
ACT 749 Mediation Act 2012 Not Yet In Force -Nil-
ACT 750 Territorial Sea Act 2012 22 June 2012
[Section 1(2) of the Act] The Act applies throughout Malaysia
-Nil-
ACT 751 Rukun Tetangga Act 2012 22 June 2012
[Section 1(2) of the Act]
-Nil-
ACT 752 Malaysia Volunteers Corps Act 2012 22 June 2012
[Section 1(2) of the Act]
-Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
ACT A1433 Universities And University Colleges (Amendment) Act 2012 Not Yet In Force ACT 30
ACT A1434 Private Higher Educational Institutions (Amendment) Act 2012 Not Yet In Force ACT 555
ACT A1435 Educational Institutions (Discipline) (Amendment) Act 2012 Not Yet In Force ACT 174
ACT A1436 Printing Presses And Publications (Amendment) Act 2012 15 July 2012
[PU(B) 233/2012]
ACT 301
ACT A1437 Capital Markets And Services (Amendment) Act 2012 Not Yet In Force ACT 671

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 202/2012 Customs (Values) (Palm Kernel) (No. 7) Order 2012 29 June 2012 1 July 2012 to
31 July 2012
ACT 235
PU(A) 203/2012 Federal Roads (Private Management) (Collection Of Tolls) (South Klang Valley Expressway) Order 2012 29 June 2012 30 June 2012
PU(A) 204/2012 Customs (Values) (Palm Oil) (No. 27) Order 2012 2 July 2012 2 July 2012 to
8 July 2012
ACT 235
PU(A) 205/2012 Rules Of Court 2012 2 July 2012 1 August 2012 ACT 55
PU(A) 214/2012 Minimum Wages Order 2012 16 July 2012 1 January 2013 ACT 732

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 221/2012 Declaration Under Section 3 Of The Prison Act 1995 - Johor Bahru, Johor 10 July 2012 10 July 2012 ACT 537
PU(B) 222/2012 Declaration Under Section 3 Of The Prison Act 1995 - Machang, Kelantan 10 July 2012 10 July 2012 ACT 537
PU(B) 223/2012 Appointment Of Date Of Coming Into Operation Of The Printing Presses And Publication (Amendment) 2012 13 July 2012 13 July 2012 ACT A1436
PU(B) 224/2012 Notice Regarding The Supplementary Electoral Roll For The First Quarter Of The Year 2012 (No. 2) That Has Been Certified Of The Elections Act 1958 16 July 2012 16 July 2012 ACT 19
PU(B) 225/2012 Notice To Third Parties Of The Anti-Money Laundering And Anti-Terrorism Financing Act 2001 17 July 2012 17 July 2012 ACT 613