Malaysia Case Law: Decisions & Judgments

Topic

Illegality and void contracts

Legal area

Court

10 Oct 2025

SARAWAK CONSOLIDATED INDUSTRIES BERHAD DYNAMIC PRESTIGE CONSULTANCY SDN. BHD.

Citation

BA-22NCC-83-07/2023 (Mahkamah Tinggi)
Court

High Court
Case number

BA-22NCC-83-07/2023 (Mahkamah Tinggi)

Plaintiff failed to discharge the burden of proof to show the existence of a genuine RCPS/EPCC offer by defendant because there were no supporting contemporaneous documents, implausible payment conduct, lack of due diligence by plaintiff's directors and credible evidence that the RM14,000,000 was paid to conceal related party transactions; consequently plaintiff's claim for repayment was dismissed and costs were awarded to defendant.
16 Nov 2022

Chan Kheng Hoe and Rachel Lim Han Ying [Messrs. Chong + Keng Hoe] K. Kirubakaran [Messrs. Selva Mookiah & Associates]

Citation

WA-22C-60-08/2021 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22C-60-08/2021 (Mahkamah Tinggi)

The guarantees and any incorporated indemnities are void and unenforceable because they are founded on the Deferred Payment Scheme which is forbidden by law under s35 CIPAA 2012; consequently no legal obligation can arise from those guarantees and the plaintiff is estopped from asserting a contrary position after the adjudication proceedings.
16 Dec 2021

Seaw Soo Hong Yap Wai Siong

Citation

JG-72NCC-52-04/2019 (Mahkamah Majistret)
Court

Magistrates' Court
Case number

JG-72NCC-52-04/2019 (Mahkamah Majistret)

Plaintiff's claim is dismissed because he failed to prove on the balance of probabilities that he advanced RM50,000 to the defendant under the pleaded terms; pleadings conflicted with oral evidence (loan versus investment) and were not amended, key transfers were not credibly linked to defendant, witnesses lacked credibility, and the alleged 10% monthly interest if treated as a loan would be illegal under the Moneylenders Act making the cause of action untenable.
24 Jul 2020

1. INGIT TIBREWAL (Sebagai Wakil Diri bagi Harta Pusaka Sures Tibrewal, simati) 2. BEENA TIBREWAL 1. DEVI MEYYAMMAI A/P RAMANATHAN 2. MEENAKSHI A/P M. RAMANATHAN 3. ALSORAYAI COMMERCE SDN BHD (Company No.: 544030-P)

Citation

WA-22NCC-198-04/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-198-04/2019 (Mahkamah Tinggi)

The consent judgments created an arrangement whereby proceeds of sale of company properties would be applied to purchase the company’s shares, thereby effectively using company assets to finance the purchase of its own shares in contravention of s123 Companies Act 2016; that illegality rendered the arrangement null and void under Contracts Act 1950 s24(e), so the plaintiffs’ claims fail and are dismissed.

Malaysia Case Law

SARAWAK CONSOLIDATED INDUSTRIES BERHAD DYNAMIC PRESTIGE CONSULTANCY SDN. BHD.

Chan Kheng Hoe and Rachel Lim Han Ying [Messrs. Chong + Keng Hoe] K. Kirubakaran [Messrs. Selva Mookiah & Associates]

Seaw Soo Hong Yap Wai Siong

1. INGIT TIBREWAL (Sebagai Wakil Diri bagi Harta Pusaka Sures Tibrewal, simati) 2. BEENA TIBREWAL 1. DEVI MEYYAMMAI A/P RAMANATHAN 2. MEENAKSHI A/P M. RAMANATHAN 3. ALSORAYAI COMMERCE SDN BHD (Company No.: 544030-P)