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CLJ Bulletin, Issue 2015, Vol 53
30 December 2015


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New This Week

1. Article Highlight

  1. THE IMPACT OF MALAYSIAN AIRLINE SYSTEM BERHAD (ADMINISTRATION)
    ACT 2015 TO WORKERS AND TRADE UNIONS
    [2015] 1 LNS(A) cvii

2. Latest Cases

  1. Legal Network Series

3. Articles

  1. Current Law Journal (CLJ) Article(s)

4. Legislation Highlights

  1. Principal Acts

  2. Amending Acts

  3. PU(A)

  4. PU(B)

  5. Legislation Alert


ARTICLE HIGHLIGHT

THE IMPACT OF MALAYSIAN AIRLINE SYSTEM BERHAD (ADMINISTRATION)
ACT 2015 TO WORKERS AND TRADE UNIONS
[2015] 1 LNS(A) cvii


ARUN KUMAR*

In this article, the writer examines the impact of the Malaysian Airline System Berhad (Administration) Act 2015 (the MAS Act) on workers and trade unions in Malaysian Airline System Berhad (‘MAS’).

INTRODUCTION

The MAS Act received royal assent on 30 December 2014 and came into operation on 20 February 2015. If one looks at the preamble to the MAS Act, one will note that one of the purposes of the MAS Act is to provide an effective, efficient and seamless means to transition the business, property, rights, liabilities and affairs of MAS to the new entity, Malaysian Airline Berhad (‘MAB’). In order to effect this transition, an Administrator was appointed on 25 May 2015. In this article, we examine the powers of the Administrator especially his powers under Section 11 of the MAS Act and to what extent those powers are compatible with the Federal Constitution of Malaysia (‘FC’). We also examine Section 25 of the MAS Act which states that MAB is not to be regarded as successor, assignee or transferee of MAS and to what extent this would impact the right of the workers as well as the existing trade unions under MAS. This article would also examine Section 27 of the MAS Act which sets out the framework on how negotiations with trade unions is to take place and whether these provisions are compatible with the Trade Unions Act 1959 (‘TUA 59’). In looking into the provisions mentioned above, we have confined ourselves to provisions which affect workers and trade unions and if the provisions are compatible with ILO Convention No 87.[1]


LATEST CASES

Legal Network Series

[2014] 1 LNS 203

KERAJAAN MALAYSIA lwn. WIRA MADANI SDN BHD

UNDANG-UNDANG SYARIKAT: Penggulungan - Petisyen - Petisyen Penggulungan berdasarkan penghakiman ingkar - Kewujudan permohonan pengenepian penghakiman ingkar ketika petisyen dikemukakan - Sama ada petisyen penggulungan syarikat boleh dikemukakan berdasarkan penghakiman ingkar

UNDANG-UNDANG SYARIKAT: Penggulungan - Ketidakupayaan membayar hutang - Ujian kesolvenan komersial atau kesolvenan aliran tunai - Anggapan ketidaksolvenan - Sama ada kegagalan membayar tuntutan yang dibuat melalui notis di bawah s. 218 merupakan bukti ketidaksolvenan - Sama ada anggapan ketidaksolvenan telah timbul - Sama ada anggapan ketidaksolvenan telah dipatahkan - Sama ada kemampuan syarikat untuk membayar hutang boleh diuji hanya berdasarkan ujian kesolvenan kunci kira-kira semata-mata - Akta Syarikat 1965, s. 218(2)(a)

[2015] 1 LNS 220

PP lwn. ABU YAZID ISMAIL

PROSEDUR JENAYAH: Rayuan - Rayuan terhadap hukuman - Rayuan oleh pihak pendakwaan - Kesalahan berat - Banduan membawa masuk dadah ke dalam penjara - Sama ada hukuman penjara satu tahun yang telah dijatuhkan memadai dan mempunyai kesan deteran kepada tertuduh dan orang ramai

[2015] 1 LNS 197

GEMA MARKETING SDN BHD v. HOTWER DEVELOPMENT SDN BHD

COMPANY LAW: Winding up - Liquidators - Appointment of liquidators - Objection by creditors of company - Objection as to appointment of top accounting firm as liquidator - Whether court has discretion on appointment of liquidators - Whether reasons for appointment of liquidators as forwarded by petitioner were acceptable - Whether proposed liquidators have expertise in managing affairs of wound up company - Whether liquidators' claim and expenses are regulated by law

[2015] 1 LNS 287

CHIN YUAN TAI v. TERAXIS CONSTRUCTION SDN BHD & ORS

CONTRACT: Breach - Agreement - Agreement coming into effect subject to condition precedent - Whether there could be breach of agreement when agreement rendered unenforceable - Whether a party could make claims under an inoperative agreement

CONTRACT: Contingent contract - Enforcement - Failure to fulfill condition precedent - Registration as shareholder subject to payment of monies - Whether agreement to register plaintiff as shareholder could be performed when plaintiff failed to advance monies as agreed - Whether there was total failure of consideration - Whether contract became void when events turned out to be impossible for parties - Contracts Act 1950, s. 32 & 33

CONTRACT: Rescission - Remedies - Claim for refund of money paid - Non-fulfillment of contract - Whether plaintiff entitled to compensation when contract rescinded - Whether plaintiff entitled to claim other relief than what was paid to defendant - Contracts Act 1950, s. 76

EVIDENCE: Documentary evidence - Stamping - Admissibility of unstamped instrument - Whether unstamped instrument has any evidential value when not admitted as an exhibit - Stamp Act 1949, s. 52(1)

CIVIL PROCEDURE: Parties - Locus standi - Action based on contract - Want of privity - Whether a party who is not privy to a contract can be sued on terms of a contract

[2015] 1 LNS 290

MARIAYEE M KRISHNAN & ORS v. NATIONAL LAND FINANCE CO-OPERATIVE SOCIETY LTD & ANOR

CONTRACT: Breach - Contract for building projects - Breach of development project - Exchange of houses pursuant to housing relocation scheme - Project failed due to disagreement by owners in respect of offer made - Whether there was a valid and binding contract entered between parties - Whether there was breach committed in not carrying out proposal for housing relocation scheme

CONTRACT: Agency - Principal and agent - Development project - Liability of principal - Whether principal bound by all acts done by agent including negotiations - Contracts Act 1950, s. 179

CONTRACT: Formation - Concluded contract - Contract for building projects - Exchange of houses pursuant to housing relocation scheme - Disagreement by some owners - Acceptance not in accordance with terms of offer - Whether there was concluded contract in absence of meeting of minds of parties - Whether agreement of all owners was condition precedent to scheme proceeding - Whether there was unequivocal acceptance over various aspects of house exchange - Whether parties were still in midst of negotiations and trying to seek an agreement acceptable by all

CONTRACT: Parties - Enforceability of agreement - Validity of agreement entered by unlawful societies - Whether any agreement concluded by unlawful society enforceable

UNINCORPORATED ASSOCIATIONS: Societies - Capacity - Unlawful association negotiating and entering into contractual relationship on behalf of its members - Whether association representing all members - Societies Act 1966, s. 6(2)


ARTICLES

Current Law Journal (CLJ) Article(s)

  1. IS LEAVE REQUIRED TO COMMENCE BANKRUPTY PROCEEDINGS ON A JUDGMENT THAT IS MORE THAN SIX YEARS OLD?* A COMMENTARY ON DR SHAMSUL BAHAR ABDUL KADIR & ANOTHER APPEAL v. RHB BANK BHD [Read excerpt]
    by: DAVID TAN** [2016] 1 CLJ(A) i

  2. [2016] 1 CLJ(A) i
    logo
    MALAYSIA

    IS LEAVE REQUIRED TO COMMENCE BANKRUPTY PROCEEDINGS ON A JUDGMENT THAT IS MORE THAN SIX YEARS OLD?* A COMMENTARY ON DR SHAMSUL BAHAR ABDUL KADIR & ANOTHER APPEAL v. RHB BANK BHD
    by
    DAVID TAN**

    The Federal Court in its recent decision of Dr Shamsul Bahar Abdul Kadir & Another Appeal v. RHB Bank Bhd [2015] 4 CLJ 561 held that a judgment creditor ('JC') who commences bankruptcy proceedings against a judgment debtor ('JD') in respect of a debt under a judgment where six years or more have lapsed since the date of the judgment must obtain prior leave of the court pursuant to O. 46 r. 2 of the Rules of the High Court 1980 (now Rules of Court 2012).

    At first blush, the Federal Court's decision in Shamsul Bahar seems a peculiar decision since a fairly recent Federal Court decision of Ambank (M) Bhd v. Tan Tem Son & Another Appeal [2013] 3 CLJ 317 had held that a bankruptcy proceeding was not a writ of execution within the meaning of O. 46 r. 2. This article will examine the reasoning of the Federal Court in Shamsul Bahar.

    Brief Facts

    A consent judgment dated 10 October 2000 was entered into between the JD and the JC whereby the JD was ordered to pay RM554,000 to the JC by way of a first instalment of RM54,000 on or before 15 November 2000 followed by monthly instalments of RM20,000 each from 15 November 2000 until full settlement.

    . . .

    * First published in Issue 3/2015 of LEGAL INSIGHTS, a Skrine Newsletter

    ** David is a Associate in the Dispute Resolution Division of Skrine. He graduated from the University of Nottingham (UK) and holds a Master of Laws from King's College London.


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LEGISLATION HIGHLIGHTS

Principal Acts

Number Title In force from Repealing
ACT 772 Animal Welfare Act 2015 Not Yet In Force -
ACT 771 Malaysian Aviation Commission Act 2015 Not Yet In Force -
ACT 770 Special Measures Against Terrorism In Foreign Countries Act 2015 15 June 2015 [PU(B) 250/2015] -
ACT 769 Prevention of Terrorism Act 2015 1 September 2015 [PU(B) 345/2015] -
ACT 768 Technologists and Technicians Act 2015 1 August 2015 [PU(B) 286/2015] -

Amending Acts

Number Title In force from Principal/Amending Act No
ACT A1503 Supply Act 2016 24 December 2015  
ACT A1502 Development Financial Institutions (Amendment) Act 2015 Not Yet In Force ACT 618
ACT A1501 Electricity Supply (Amendment) Act 2015 1 January 2016 [PU(B) 501/2015] ACT 447
ACT A1500 Anti-Trafficking In Persons and Anti-Smuggling of Migrants (Amendment) Act 2015 18 November 2015 [PU(B) 460/2015] ACT 670
ACT A1499 Capital Markets and Services (Amendment) Act 2015 15 September 2015 [PU(B) 369/2015] ACT 671

PU(A)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(A) 305/2015 Customs Duties (Amendment) (No. 3) Order 2015 29 December 2015 1 January 2016 PU(A) 275/2012
PU(A) 304/2015 Control of Tobacco Product (Amendment) (No. 2) Regulations 2015 28 December 2015 1 January 2016 PU(A) 324/2004
PU(A) 303/2015 Stamp Duty (Exemption) Order 2015 22 December 2015 1 November 2014 ACT 378
PU(A) 302/2015 Real Property Gains Tax (Exemption) Order 2015 22 December 2015 1 November 2014 ACT 169
PU(A) 301/2015 Proclamation - Summon The Parliament 22 December 2015 7 March 2016 ACT 000

PU(B)

Number Title Date of Publication In force from Principal/ Amending Act No
PU(B) 497/2015 Notification of Values of Palm Kernel Under Section 12 23 December 2015 1 January 2016 to 31 January 2016 ACT 235
PU(B) 496/2015 Notice To Third Parties 23 December 2015 5 January 2016 ACT 613
PU(B) 495/2015 Notification of Values of Crude Petroleum Oil Under Section 12 22 December 2015 24 December 2015 to 6 January 2016 ACT 235
PU(B) 494/2015 Notice Amendments To The List of Licensees 21 December 2015 22 December 2015 PU(B) 212/2015
PU(B) 493/2015 Notice of Extension of Time Period For Making Preliminary Determination 18 December 2015 24 December 2015 until 22 January 2016 PU(B) 340/2015

Legislation Alert

Updated

Act/Principal No. Title Amended by In force from Section amended
PU(A) 275/2012 Customs Duties Order 2012 PU(A) 305/2015 1 January 2016 First Schedule
PU(A) 324/2004 Control of Tobacco Product Regulations 2004 PU(A) 304/2015 1 January 2016 Regulations 2 and 23
PU(A) 272/2014 Goods and Services Tax (Zero-Rated Supply) Order 2014 PU(A) 290/2015 1 January 2016 First Schedule and Second Schedule
PU(B) 212/2015 List of Licensees PU(B) 494/2015 22 December 2015 Schedule
ACT 45 Judges' Remuneration Act 1971 PU(A) 295/2015 1 October 2015 Second Schedule

Revoked

Act/Principal No. Title Revoked by In force from
PU(A) 390/2001 Malaysian Rubber Board (Establishment of Corporation) (RRIM-Consult Corporation) Order 2001 PU(A) 266/2015 15 November 2015
PU(A) 436/2011 Statutory Bodies (Discipline and Surcharge) (Amendment of Second Schedule) Order 2011 PU(A) 253/2015 1 July 2015
PU(A) 479/2012 Capital Markets and Services (Prescription of Capital Market Product) (Islamic Capital Market Product) Order 2012 ACT A1499 15 September 2015 [PU(B) 369/2015]
PU(A) 478/2012 Capital Markets and Services (Prescription of Islamic Securities) Order 2012 [Revoked By Act A1499] ACT A1499 15 September 2015 [PU(B) 369/2015]
PU(B) 487/2014 Appointment and Revocation of Appointment of Registrar of Fishermen's Associations PU(B) 322/2015 Appointment - 18 May 2015; Revocation of Appointment - 4 April 2015