Malaysia Case Law: Decisions & Judgments

Topic

Dishonour of cheque

Legal area

Court

15 May 2025

MRADULA A/P RAMANIK LAL 1. ) MASER (M) SDN BHD 2. ) IBRAHIM BIN MAT SEDDEK 3. ) MOHAMMAD AZAHAN BIN MAT SEDDEK 4. ) DATO' MAT SEDDEK BIN ADAM

Citation

WA-22NCC-502-11/2021 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-502-11/2021 (Mahkamah Tinggi)

Plaintiff failed to prove on the balance of probabilities that the defendants knowingly participated in carrying on the company's business with intent to defraud creditors; loan was RM1,650,000; the loan was not proven to be moneylending at interest; issuing a post-dated cheque and subsequent JMO were legitimate or equivocally explained and insufficient to establish the necessary subjective dishonesty under s.540, therefore claim against the individual defendants dismissed.
19 Nov 2023

1. ) LIZIZ STANDACO SDN.BHD. 2. ) GUOK NGUONG PENG 1. ) Ong Koh Kou @ Won Kok Fong 2. ) ONG LIANG YU 3. ) LAU YONG FOONG

Citation

DA-22NCC-3-09/2018 (Mahkamah Tinggi)
Court

High Court
Case number

DA-22NCC-3-09/2018 (Mahkamah Tinggi)

On the balance of probabilities the court found the true loan was RM112,025,000 based on the quantum of security (98 cheques valued RM104,025,000 plus titles); the SIP was procured by fraudulent misrepresentation by Plaintiff 2 and is therefore voidable and declared void; defendants were entitled to retain and, where necessary, enforce the cheques under the Bills of Exchange Act 1949 and to recover sums for dishonoured cheques; plaintiffs' claim was dismissed and defendants' amended counterclaim allowed to the extent of the sums ordered.
24 Nov 2020

MELCHERS MALAYSIA SDN BHD 1. ) TEE CHU CHUAN 2. ) CHENGALJATI SDN BHD

Citation

B52NCvC-66-03-2020 (Mahkamah Sesyen)
Court

Sessions Court
Case number

B52NCvC-66-03-2020 (Mahkamah Sesyen)

The court found the plaintiff produced the dishonoured cheque, bank return advice and notice of dishonour and the 2nd defendant failed to raise any bona fide triable issue; under the Bills of Exchange Act (notably ss.38,43,55) the holder has immediate recourse against the drawer, so summary judgment was appropriate for RM78,000 plus interest and costs.

Malaysia Case Law

MRADULA A/P RAMANIK LAL 1. ) MASER (M) SDN BHD 2. ) IBRAHIM BIN MAT SEDDEK 3. ) MOHAMMAD AZAHAN BIN MAT SEDDEK 4. ) DATO' MAT SEDDEK BIN ADAM

1. ) LIZIZ STANDACO SDN.BHD. 2. ) GUOK NGUONG PENG 1. ) Ong Koh Kou @ Won Kok Fong 2. ) ONG LIANG YU 3. ) LAU YONG FOONG

MELCHERS MALAYSIA SDN BHD 1. ) TEE CHU CHUAN 2. ) CHENGALJATI SDN BHD