Malaysia Case Law: Decisions & Judgments

Topic

Presumption under s10oa

Legal area

Court

28 Oct 2025

PANG VENG YAEN LEE MEI KIM

Citation

N-02(NCvC)(W)-802-05/2024 (Mahkamah Rayuan)
Court

NCvC
Case number

N-02(NCvC)(W)-802-05/2024 (Mahkamah Rayuan)

On the totality of evidence the Court found the two SPAs were sham transactions disguising loans: the plaintiff advanced money to pay stamp duty via solicitor, charged interest at 5% per month, had no licence, funds were not received by defendants and repayment was structured as a buy-back option—invoking the presumption under s10OA MA1951 which plaintiff failed to rebut—therefore agreements contravened s15 MA1951 and were unenforceable; the High Court’s findings were set aside and both appeals allowed.
17 Sept 2024

THARMALINGAM A/L MUNIANDY 1. ) KOKULA BALAN A/L EHAMBARAM 2. ) RHB BANK BERHAD

Citation

BA-12B-49-06/2023 (Mahkamah Tinggi)
Court

High Court
Case number

BA-12B-49-06/2023 (Mahkamah Tinggi)

Section 10OA presumption was properly raised because the agreement imposed monthly payments in excess of the principal; the appellant failed to rebut the presumption that he was carrying on the business of moneylending; therefore the loan arrangement was part of unlicensed moneylending and unenforceable, and the appeal is dismissed.
17 Mar 2023

Shim Vui Geh Dayang Masturah Bt Sahari

Citation

S-01(NCvC)(W)-139-03/2022 (Mahkamah Rayuan)
Court

NCvC
Case number

S-01(NCvC)(W)-139-03/2022 (Mahkamah Rayuan)

The Court held Shim was not carrying on the business of moneylending on the evidence and had rebutted the statutory presumption under s10OA; the loans were therefore friendly and enforceable, but the mechanism used to take security (outright transfers and sale agreements held in escrow) defeated the Sabah Land Ordinance and Contracts Act and were void; accordingly the transfers are set aside and the borrowers must repay the acknowledged loan sums, default interest at 1.5% p.m. is struck down and the court awarded interest at 5% p.a. from 17.3.2023 to date of realisation; counterclaims for inj…

Malaysia Case Law

PANG VENG YAEN LEE MEI KIM

THARMALINGAM A/L MUNIANDY 1. ) KOKULA BALAN A/L EHAMBARAM 2. ) RHB BANK BERHAD

Shim Vui Geh Dayang Masturah Bt Sahari