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CLJ Logo CLJ Bulletin, Issue 2013, Vol 52
27 December 2013

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New This Week

1. Cases Of The Week

a) HONG LEONG BANK BHD v. M MUTHIAH & ANOR AND ANOTHER APPEAL

b) IN RE INQUEST INTO THE DEATH OF LIM CHIN AIK, DECEASED

2. Latest Cases

a) Legal Network Series

3. Articles

a) Legal Network Series Article

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASES OF THE WEEK

HONG LEONG BANK BHD v. M MUTHIAH & ANOR AND ANOTHER APPEAL
FEDERAL COURT, PUTRAJAYA
ARIFIN ZAKARIA CJ, RAUS SHARIF PCA, ABDULL HAMID EMBONG FCJ, AHMAD MAAROP FCJ, ZALEHA ZAHARI FCJ
[CIVIL APPEALS NO: 02-8-03-2013(W) & 02-9-03-2013(W)]
7 NOVEMBER 2013

BANKING: Banks and banking business - Guarantees - Banking facilities - Borrower's default in repayment - Liability against guarantors - Notice of demand - Purpose of - Whether must state precise amount due and owing by guarantors - Guarantee agreement - Interpretation of - Whether guarantors deemed to be principal debtors - Certificate of indebtedness - Whether binding and sufficient proof of amount due - Whether liabilities of guarantors include interest arising from loan plus other charges - Whether guarantors liable for whole sum due and owing by borrower

IN RE INQUEST INTO THE DEATH OF LIM CHIN AIK, DECEASED
SESSIONS COURT, PULAU PINANG
KHAIRUL ANUAR ABD HALIM SJ
[CORONER'S INQUEST NO: 88-2-2013]
29 NOVEMBER 2013

CRIMINAL PROCEDURE: Sudden death - Inquest - Car and driver crushed into underground hole - Circumstantial evidence showed driver might have been crushed to death - Search and rescue called off without finding body of driver - Whether inquest on death could be conducted by Coroner - Proper verdict - Whether death by misadventure - Criminal Procedure Code, ss. 329, 337 - Evidence Act 1950, s. 108

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LATEST CASES

Legal Network Series

[2013] 1 LNS 239

KURNIA INSURANS (MALAYSIA) BERHAD v. PERSONAL REPRESENTATIVE OF ZENOL SAAD & ORS

INSURANCE: Motor insurance - Liability - Insurable interest - Accident claim pending before the Sessions Court - Whether this application to be decided based on outcome of Sessions Court proceedings - Whether insurable interest of Deceased ceased upon sale of the car by deceased to R2 - Whether policy automatically lapsed - Whether Deceased could assign his Policy to R2 or any third party - Whether insurers or applicant could be held responsible in respect of third party motorcyclists such as R3 and R4

INSURANCE: Motor insurance - Duty of disclosure - Material non-disclosure - Uberrimae Fide - Deceased failed to inform applicant car sold to R2 - Whether deceased had an insurable interest under the Policy - R2 retracted false police report concerning involvement in accident - Effect thereof - Whether applicant entitled to repudiate the policy and be allowed reliefs applied for

[2013] 1 LNS 244

SOH LIAN TENG & ORS v. LAI TAK SOON DANIEL & ANOR

LEGAL PROFESSION: Solicitors - Stakeholders - Appointment of - Whether defendants validly appointed by 3rd plaintiff as solicitors for purpose of sale and purchase of property - Whether 3rd plaintiff could only act through its board of directors - Whether a mandate from the board of directors via a board resolution necessary - Whether acts by PW1 to appoint defendant as solicitors were ultra vires the company - Whether possible for PW1 to appoint firm as 3rd plaintiff's stakeholder

LEGAL PROFESSION: Solicitors - Stakeholders - Whether defendants were stakeholders for the 10% advance payment in respect of the sale and purchase of property - Whether solicitors held money as stakeholder or received monies as agent of the Vendor to be released to Vendor upon demand - Whether defendants acted accordingly in respect of the 10% advance payment - Whether defendants were liable to pay the plaintiffs the sum of RM300,0000 or part thereof

[2013] 1 LNS 247

BALDA SOLUTIONS MALAYSIA SDN BHD v. FOO WAN SENG

COMPANY LAW: Directors - Breach of duties - Whether there was a duty of care on defendant as a CEO and director of plaintiff to exercise reasonable care, skill and diligence in conduct of plaintiff's affairs - Whether defendant acted in breach of his duty of care and skill as CEO and director of plaintiff with respect to the Canon Projects - Whether defendant could excuse his actions by saying that he had appointed capable personnel to carry out the required tasks and relied on such persons to carry out their duty - Even if defendant had relied on his personnel, whether he had a duty to supervise them

[2013] 1 LNS 254

PHILIP MORRIS BRANDS SARI v. GOODNESS FOR IMPORT AND EXPORT & ORS

CIVIL PROCEDURE: Judgments and orders - Order of court - Stay of execution - Application for - Stay pending appeal - Whether it would render plaintiff's appeal to the Court of Appeal nugatory and academic if stay not granted - Whether substratum of the appeal destroyed and subject matter of Writ and Statement of Claim would no longer be in the jurisdiction of Malaysia and of the Court - Whether plaintiff successfully showed special circumstances which merited a stay - Whether on a balance of convenience, the status quo should be maintained - If decision favourable to first defendant, whether monetary compensation would be an adequate remedy

CIVIL PROCEDURE: Injunction - Erinford injunction - Application for - Plaintiff's earlier injunction application dismissed - Whether Court precluded from granting the Erinford Injunction applied for by plaintiff - Whether with said Order, there was now no Writ in existence and thus no pending cause or matter for the Court to decide - Whether plaintiff's application should be dismissed in limine

[2013] 1 LNS 255

WONG KEE SEONG v. HONG LEONG BANK BERHAD

BANKING: Banker and customer - Duty of banker - Clearing or honouring cheques issued by a customer from his current account - Whether bank's duty or obligation to honour cheque promptly must also be balanced with its duty to exercise due care and diligence to determine authenticity of cheque - Whether defendant exercised reasonable care and prudence when it did not honour but returned cheque to payee - Whether defendant justified in deciding not to honour cheque

ARTICLE

Legal Network Series Article

1. REVIEW OF THE CONTRACTS ACT 1950: WHY AND WHAT?* [Read excerpt]
    by: TUN ABDUL HAMID MOHAMAD** [2013] 1 LNS(A) ixxxvii

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
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-
ACT 756 Traditional And Complementary Medicine Act 2013 Not Yet In Force -Nil-
ACT 755 Finance Act 2013 See s 3 for the Income Tax Act; s 41 for the Stamp Act; s 47 for the Petroleum (Income Tax) Act and s 55 for the Real Property Gains Tax Act -Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
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
ACT A1453 Supplementary Supply (2012) Act 2013 7 September 2013
ACT A1452 Animals (Amendment) Act 2013 20 August 2013 [PU(B) 359/2013] ACT 647

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 370/2013 Employees' Social Security (General) (Amendment) Regulations 2013 24 December 2013 1 January 2014 PU(A) 99/1971
PU(A) 369/2013 Real Property Gains Tax (Exemption) (Revocation) Order 2013 24 December 2013 1 January 2014 ACT 169
PU(A) 368/2013 Minimum Retirement Age (Inquiry) Regulations 2013 23 December 2013 1 January 2014 ACT 753
PU(A) 367/2013 Price Control And Anti-Profiteering (Price Marking Of Price-Controlled Goods) (No. 6) Order 2013 20 December 2013 23 December 2013 to 27 December 2013 ACT 723
PU(A) 366/2013 Price Control And Anti-Profiteering (Determination Of Maximum Price) (No. 8) Order 2013 20 December 2013 23 December 2013 to 27 December 2013 ACT 723

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 488/2013 Commission Of Enquiry On Immigrants In Sabah - Enlargement Of Time 20 December 2013 21 September 2013 ACT 119
PU(B) 487/2013 Returns And Statements Of Election Expenses - Kedah 20 December 2013 Specified in column (4) of the Schedule ACT 5
PU(B) 486/2013 Notice Under Subsection 70(2) 20 December 2013 Specified in column (3) of the First Schedule ACT 333
PU(B) 485/2013 Reservation Of Land For Public Purpose For Lot 80558 Mukim Batu 17 December 2013 18 December 2013 ACT 56/1965
PU(B) 484/2013 Declaration Of Vacations Of The High Court In Malaya 16 December 2013 17 December 2013 PU(A) 326/1985
[2013] 1 LNS(A) lxxxvii MALAYSIA

REVIEW OF THE CONTRACTS ACT 1950: WHY AND WHAT?*

by

TUN ABDUL HAMID MOHAMAD**


(I have retired. I do not have the manpower, the facility or the energy to do a thorough research, going through the Act section by section and recommend specific changes to the Act. However, what I am stating here is based on what I have come across in my experience in and around the courts for more than four decades, including after my retirement.)

The fact that the Act has been around for more than half a century without major events arising from it, the fact that it has been used from Malaya, a British Colony, to Malaysia, an independent country, from an agricultural country to an industrialised country and the fact that the same law is also used in other former British Colonies until today, speak a lot about it. It is meant to last.

Furthermore, the law of contract is a basic law in any jurisdiction or jurisprudence. It has evolved over hundreds of years, even borrowing principles from each other. Indeed, the core principles are the similar in any jurisdiction or jurisprudence.

Particularly in a common law system, the beauty of having a long-lasting basic law is the richness of precedents and literature on the subject. That caters for certainty in the law.


. . .

* Seminar On The Law Of Contract, 29 November 2013

** tunabdulhamid@gmail.com , http://www.tunabdulhamid.my


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