In assessing contractual damages, the traditional Malaysian approach distinguishes strictly between expectation loss—the value of the bargain—and reliance loss—expenditure wasted due to the breach. This dichotomy requires claimants to elect between the two, on pain of having their claims struck for uncertainty. The most recent pronouncement on reliance and expectation losses in Malaysia is China Comservice (Hong Kong) Ltd v Sediabena Sdn Bhd [2024] 4 MLJ 684. The Court of App

The breakdown of trust between shareholders often marks the beginning of a corporate battle. In these bitter fallouts, aggrieved shareholders frequently seek recourse under Section 346 of the Companies Act 2016 (CA 2016), which provides relief against conduct that is oppressive, unfairly discriminatory or prejudicial. Yet a critical question arises: when does corporate wrongdoing or mismanagement cross the threshold into shareholder oppression? Recently, the High Court in

A Fortuna injunction is an equitable remedy used to restrain the presentation or advertisement of a winding-up petition on the consideration that such a petition, if presented based on a disputed debt, may cause irreparable harm to the company. The recent High Court decision in Perusahaan Otomobil Nasional Sdn Bhd v UCM Automotive Systems Sdn Bhd [2025] CLJU 846 (the Proton case) reaffirms the well-established test applicable to Fortuna injunction under Malaysian law. The

A Mareva injunction is a court order that freezes a litigant’s assets to prevent them from being dissipated or removed from the jurisdiction while legal action is ongoing. Recently, in Maxi Wonder Sdn Bhd & Ors v DCS Trading Sdn Bhd [WA-22NCC-110-02/2024], the High Court considered whether a Mareva injunction application by the defendant against the plaintiffs should be granted. The Law On Mareva Injunction In Maxi Wonder , the High Court applied the established three-pro

The recent Court of Appeal decision in SPM Energy Sdn Bhd & 1 Ors v Multi Discovery Sdn Bhd [2025] MLJU 515 underscores a crucial lesson for litigants and practitioners – namely, the importance of careful drafting in pleadings. This case highlights how admissions, once made in pleadings, cannot be easily retracted or explained. It also demonstrates the far-reaching consequences of such admission on the outcome of the hearing. Brief Facts The contractual relations between

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

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

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

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

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

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

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

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

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

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

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

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

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 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

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