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Publications & News


Bare Denials: Sufficient Pleading?
Pleadings serve a critical purpose: they define the issues in dispute, inform the parties of the case they must meet, and enable them to prepare accordingly. Each party has the right to present the material facts supporting their claim or defence. Under Order 18 Rule 13 of the Rules of Court 2012, a party is deemed to admit any factual allegation raised in a statement of claim unless it is traversed in their pleading or through a joinder of issue. This raises an important que


Time Is Of The Essence – A Clause That Might Backfire
The phrase "time is of the essence" has become so ubiquitous that it is almost a standard term in contracts. It is a clause that contracting parties readily expect, as timely delivery of promises is a fundamental expectation in any agreement. Often, such clauses are accompanied by a penalty mechanism to enforce compliance. If one party fails to meet the agreed timeline, they are typically required to compensate the other. In the construction industry, for example, this penalt


Navigating Indefeasibility: Insights From Setiakon Engineering Sdn Bhd v Mak Yan Tai & Anor
The doctrine of indefeasibility of title is embodied in Section 340(1) of the National Land Code (NLC), which provides that the title or interest of any person for the time being registered as proprietor of any land shall be indefeasible. Indefeasibility, nevertheless, is not absolute or unqualified. Section 340(2) of the NLC specifies the circumstances where a registered title or interest may be set aside: (i) in any cause of fraud or misrepresentation to which the person or


The Rights Of A Beneficiary To A Property Where The Owner Died Intestate
When a person passes away, family members often have to grapple with the matter of administering the estate of the deceased. In a situation where there is a will, there is some certainty as to the entitlement of each of the beneficiaries to particular assets in the estate of the deceased. However, where there is no will (i.e. the person dies intestate), the question arises as to what are the rights and entitlements of the beneficiaries in relation to the estate? The Court o


Crossclaim in Adjudication Proceedings: Fundamental Difference From Counterclaim In Court Proceedings
The Court of Appeal in Tera Va Sdn Bhd v Ayam Bintang Istimewa Sdn.Bhd. [2024] MLJU 2408 examined a number of issues in relation to a counterclaim in adjudication proceedings specifically governed by the Construction Industry Payment and Adjudication Act 2012 (CIPAA). Facts The appellant (Tera Va- TV) and respondent (Ayam Bintang Istimewa- ABI) in this appeal were respectively the claimant and respondent in the adjudication proceedings. ABI appointed TV to supply, deli


Tan Chong Industrial Equipment Case:Can Unjust Enrichment Override A Contract?
The sanctity of contracts is a key principle in contract law, rooted in the idea that any agreements entered into freely by parties must be upheld, unless vitiating factor such as fraud, duress or illegality come into play. In Tan Chong Industrial Equipment Sdn Bhd v Transnasional Express Sdn Bhd & 6 others [2024] CLJU 1977, the Court of Appeal re-examined this fundamental principle, affirming that the integrity of contractual obligations holds firm even against claims of u


Teckland Motors Sdn Bhd v Pang Guan Hong & Ors: Choosing Between Two Contracts
When two parties claim the right to purchase the same property under separate agreements with the same seller, which agreement takes precedence? In the case of Teckland Motors Sdn Bhd v Pang Guan Hong & Ors [2024] 9 MLJ 359, the Defendants, as landowners, found themselves at the centre of such a dispute. This case highlights the legal considerations involved when determining which sale and purchase agreement is valid, and who ultimately holds the rights to the property. Th


Low Cheng Teik & ors v Low Ean Nee: Whether A Shareholder’s Complaint Is Actionable Via An Oppression Action Or A Derivative Action
On 28.8.2024, the Federal Court issued a landmark decision that clarified the distinctions between oppression actions and derivative actions under the Companies Act 2016 (CA 2016). This ruling offers valuable guidance in determining the appropriate legal course based on individual circumstances. Facts Low Cheng Teik & ors v Low Ean Nee Civil Appeal No.: 02(f)-30-04/2023(W) was an appeal by Low Cheng Teik and two others (Appellants) against the decision of the Court of Appeal


Defending A Defamation Claim
Defamation is a legal concept recognised under the Defamation Act 1957 which aims to protect an individual’s reputation. This right is balanced against freedom of speech, allowing individuals to seek legal redress when defamatory content is published. It is trite that a statement can be considered defamatory if it has a tendency to lower, or adversely affect, a person's reputation; exposes a person to hatred, contempt or ridicule; causes him to be shunned or avoided or injure


Want Of Consideration: Can Parties Mutually Agree To Vary An Existing Contract?
It is commonplace that contracting parties will document their meeting of minds into a written agreement for formality and ease of enforceability. The question is whether contracting parties can subsequently come to a mutual agreement to vary the terms of the initial agreement including the agreement in relation to consideration i.e. price. Although a contract is essentially founded on the consent of both the promisor and promisee, this does not mean contracting parties can v


Leave Application To Commence Derivate Actions Explained By The Federal Court
Derivative action is an action commenced on behalf of a company, especially in cases of “fraud on the minority” and “wrongdoers in control”. The commencement of derivative action is now a statutory regime under the Companies Act 2016 (CA). A complainant may, with the leave of court initiate, intervene in or defend a proceeding on behalf of a company. This is not confined to the members of the company alone as it also extends to persons who are not members but entitled to be


Contemporaneous Documentary Evidence In The Face Of Conflicting Oral Evidence
In the complex world of legal disputes, where truth is often obscured by the fog of conflicting narratives, one might overlook the humble yet formidable power of a document. In the recent High Court case of Goh Choo Hock v Goh Swee Meng [2024] AMEJ 0936, contemporaneous documents played a crucial role in determining the outcome of a land ownership dispute between 2 brothers. Background This case revolved around a dispute between two brothers, Goh Choo Hock (CH) and Goh S


Common Corporate Exercises By Listed Companies
Companies often embark on a spectrum of corporate exercises designed to bolster their market standing, drive shareholder value and adapt to the ever-evolving business dynamics. This alert examines the various common corporate exercises that are undertaken by listed companies, ranging from rights issues to raise additional capital to bonus issues that reward shareholders. Each initiative represents a deliberate step towards sustainable growth of these listed companies. Rig


Reinsurance Contracts: Reconciling “The Claims Co-Operation Clause” And “Follow The Settlement Clause”
Reinsurance is essentially insurance that a reinsurance company (reinsurer) undertakes to assume the risks of another insurance company (reinsured/primary insurer) for insurance policies they undertook with their customers (principal insured). Reinsurance facilitates the spreading of risk or financial exposure from the principal insurer to other reinsurers to enable them the possibility of underwriting larger risks. In the recent decision of Chubb Insurance Malaysia Bhd (dahu


Can A Company Be Wound-Up Based On Adjudicated Decision Under The CIPAA 2012?
Once a valid and enforceable judgment has been obtained by one party against another, a winding-up court will not revisit the judgment to determine whether the sum can be considered disputed, with the intent to defeat a winding-up petition against a company. The recent Court of Appeal in Bludream City Development Sdn Bhd v Pembinaan Bina Bumi Sdn Bhd [2024] CLJU 545 discusses whether a company can be wound-up pursuant to an adjudication decision made under the Constructio


Multi-Tiered Dispute Resolution Clauses – Potholes or Prudence
Multi-tiered dispute resolution clauses have become a ubiquitous feature in commercial contracts, offering parties an alternative avenue for resolving disputes outside traditional court proceedings. Where a dispute resolution clause has been agreed upon by parties, the court’s primary task or duty is to give effect to that clause. Additionally, there may be even further prerequisites to arbitration, such as a mediation or negotiation clause on top of an arbitration clause,


From Tweets To Torts: Defamation In The Age Of Social Media
We do not often consider the impact of our words, at least not in the strictly legal sense. Yet, across centuries and cultures, the value of reputation has been universally acknowledged. As Shakespeare's Iago astutely observed in Othello, reputation “ is an idle and most false imposition; oft got without merit and lost without deserving ”. The law of defamation, governed by the Defamation Act 1957, seeks to provide an avenue to redress the frequently superfluous and unprovo


Shielding Defamation: Absolute Privilege In The Courtroom
In the realm of legal proceedings, a powerful shield known as absolute privilege stands guard, providing robust protection to statements made within the confines of the courtroom. This doctrine which deeply rooted in the principles of justice and free speech, grants immunity from defamation claims to individuals involved in judicial proceedings. Amidst this legal landscape, a pivotal question arises: Can one truly speak freely within the courtroom or does the shadow of defama


Half-Truth As A Whole Lie
The present information age is characterised by the abundance of information and minimal restrictions on access and control thereof. The right to freedom of speech and expression rises to prominence considering its role for the dissemination and acquisition of information and knowledge. In Malaysia, this right is constitutionally protected pursuant to Article 10 of the Federal Constitution. It is trite, however, that the right to freedom of speech and expression is not abso


Striking Out: Pleadings Stuck Off Due To Prolixity
A striking out order (Order) is often described to be a draconian order. In this regard, the UK Supreme Court in the case of Summers v Fairclough Homes Ltd [2012] 1 WLR 2004 commented that: “The draconian step of striking a claim out is always a last resort, a fortiori where to do so would deprive the claimant of a substantive right to which the court had held that he was entitled after a fair trial. It is very difficult indeed to think of circumstances in which such a conclu
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