Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Friendly loan vs fraud

Legal area

Court

28 Jan 2022

NARENDRAN A/L NAGAPPAN

Citation

AA-42K-23-04/2021 (Mahkamah Tinggi)
Court

High Court
Case number

AA-42K-23-04/2021 (Mahkamah Tinggi)

Convictions were unsafe and set aside because (1) the s.420 charges were materially defective and misleading — evidence showed payments were made to a third party (Ganang Resources) so accused was misled and a failure of justice occurred, and (2) a maximum evaluation of the prosecution evidence permitted a reasonable inference that the transactions were friendly loans which had been repaid, creating reasonable doubt as to dishonesty; accordingly appeals allowed and accused acquitted.
28 Jan 2022

NARENDRAN A/L NAGAPPAN

Citation

AA-42K-32-04/2021 (Mahkamah Tinggi)
Court

High Court
Case number

AA-42K-32-04/2021 (Mahkamah Tinggi)

The High Court held that the 35 charges under section 420 were defective because the prosecution's case showed monies were paid to Ganang Resources (a third party) as well as to the appellant, and the defective charging occasioned a failure of justice not curable under sections 156 and 422 CPC; further, a maximum evaluation of the prosecution evidence showed reasonable inferences favoring the appellant (that the transactions were friendly loans largely repaid) so no safe prima facie case existed. Accordingly all convictions and sentences were set aside and the appellant was acquitted and disc…