Malaysia Case Law: Decisions & Judgments

Topic

Restraint of trade

Legal area

Court

13 Apr 2026

Delight House Management (KL) Sdn Bhd Chew Choi Ting

Citation

JA-22NCvC-44-03/2025 (Mahkamah Tinggi)
Court

High Court
Case number

JA-22NCvC-44-03/2025 (Mahkamah Tinggi)

Plaintiff failed to prove its substantive allegations on the balance of probabilities because key documents were inadmissible or lacked weight, direct evidence was absent, critical testimony was hearsay or unsupported, monies were returned, no enforceable post-termination restraint or proven misuse of confidential information existed, and the Plaintiff failed to call indispensable witnesses; accordingly the claim is dismissed and costs awarded to the Defendant.
26 Aug 2025

1. ) ROSDIDI BIN ABD RAHMAN Yang Berniaga atas nama dan gaya RA NETWORK SERVICES (No. Syarikat - 198903074907) 2. ) MOHD RIDHWAN BIN ROSDIDI Yang Berniaga atas nama dan gaya RDNET SERVICES (No. Syarikat - 201803351172) ABX EXPRESS (M) SDN B

Citation

KA-22NCvC-46-08/2022 (Mahkamah Tinggi)
Court

High Court
Case number

KA-22NCvC-46-08/2022 (Mahkamah Tinggi)

Plaintiffs failed to prove the existence and terms of the alleged agency agreement dating from 1988; the only documentary proof was a 1994 reference letter which the Court held was not a binding agency contract. As the plaintiffs did not discharge the legal burden, their claims failed; the Defendant proved its counterclaim on the balance of probabilities and was awarded RM79,919.46 with 5% p.a. interest from date of judgment until full settlement and costs of RM20,000.00.
16 Jun 2025

BAANU A/P MOHAN AIA BERHAD

Citation

WA-22NCC-700-10/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-700-10/2024 (Mahkamah Tinggi)

The court held the clause was void under section 28 of the Contracts Act 1950 because it unlawfully restrains the spouse (a third party) from exercising a lawful profession or employment; while an employer may validly restrict an employee during the contract for fidelity reasons, it cannot lawfully impose indirect restraints on third parties via contractual terms, therefore the impugned clause is unenforceable.
25 Aug 2022

AREM (MALAYSIA) SDN BHD 1. ) BADAN PENGURUSAN BERSAMA PANGSAPURI SERI INTAN 2. ) MUHAMMAD HANIF BIN AMIR 3. ) MOHAMMAD FAIEZUDDIN FITRI B MOHD RAZANI 4. ) MUHAMMAD ARIFF BIN ZULKEFLEE 5. ) GLOBAL KNIGHT PROPERTY MANAGEMENT

Citation

BA-A53-5-02/2021 (Mahkamah Sesyen)
Court

Sessions Court
Case number

BA-A53-5-02/2021 (Mahkamah Sesyen)

Clause 3.11 is a non-solicitation clause (not a general restraint of trade) that bars the JMB or its related property-management ventures from employing directly or indirectly Plaintiff’s former staff for five years; the plain language including 'indirectly' and the commercial factual matrix (appointment of 5th Defendant controlled by 2nd Defendant and payment flow) established that Defendant 1 indirectly employed former staff via 5th Defendant and thus breached Clause 3.11; other pleaded causes (tortious interference, misuse of confidential information, breach by Defs 2-4, fiduciary duty) we…
22 Jun 2022

1. ) WANG SEE SOOI 2. ) BIOCOSLAB MANUFACTURING SDN BHD TAN YON CHIA

Citation

BA-22NCvC-113-03/2021 (Mahkamah Tinggi)
Court

High Court
Case number

BA-22NCvC-113-03/2021 (Mahkamah Tinggi)

Application for interlocutory injunction dismissed because plaintiffs failed to satisfy equitable prerequisites: they delayed bringing the application, failed to make full and frank disclosure, did not show a substantial question to be tried on the evidence, the restraint sought was contrary to s28 Contracts Act 1950 and unenforceable, the alleged confidential information was not shown to be owned or confidential to plaintiffs and was in part public domain, and damages were an adequate remedy with balance of convenience favouring the defendant.
20 Jan 2020

1. Barisan baiduri (M) Sdn Bhd 2. Bang Bang Studios Sdn Bhd Ariz Bin Ramli & 3 Lagi

Citation

22NCC-584-10/2019 (Mahkamah Tinggi)
Court

High Court
Case number

22NCC-584-10/2019 (Mahkamah Tinggi)

Although serious issues existed requiring trial (including validity/termination of the shareholders agreement and rights to the names), the plaintiffs failed to establish prima facie breach or irreparable harm; evidence was insufficient, plaintiffs delayed in seeking equitable relief and were effectively content with defendant exploiting the names; an injunction would unfairly deprive the defendant of livelihood and damages are an adequate remedy for the monetary claims — therefore balance of convenience favoured refusal and the interim injunction was dismissed.
15 May 2019

ACUMEN SCIENTIFIC SDN BHD YEOW LIANG MING

Citation

P-02(NCVC)(W)-1618-08/2018 (Mahkamah Rayuan)
Court

NCVC
Case number

P-02(NCVC)(W)-1618-08/2018 (Mahkamah Rayuan)

The Court of Appeal held that on objective construction of the contractual documents and the factual matrix the defendant remained bound by the confidentiality and conflict of interest obligations despite transfer within the group; the defendant, as General Manager and Working Director, owed fiduciary duties which he breached by using and disclosing the plaintiff's confidential information to set up and benefit a competing company; the High Court decision was therefore wrong and was set aside, the plaintiff's specified claims were allowed and the defendant's counterclaim dismissed.

Malaysia Case Law

Delight House Management (KL) Sdn Bhd Chew Choi Ting

1. ) ROSDIDI BIN ABD RAHMAN Yang Berniaga atas nama dan gaya RA NETWORK SERVICES (No. Syarikat - 198903074907) 2. ) MOHD RIDHWAN BIN ROSDIDI Yang Berniaga atas nama dan gaya RDNET SERVICES (No. Syarikat - 201803351172) ABX EXPRESS (M) SDN B

BAANU A/P MOHAN AIA BERHAD

AREM (MALAYSIA) SDN BHD 1. ) BADAN PENGURUSAN BERSAMA PANGSAPURI SERI INTAN 2. ) MUHAMMAD HANIF BIN AMIR 3. ) MOHAMMAD FAIEZUDDIN FITRI B MOHD RAZANI 4. ) MUHAMMAD ARIFF BIN ZULKEFLEE 5. ) GLOBAL KNIGHT PROPERTY MANAGEMENT

1. ) WANG SEE SOOI 2. ) BIOCOSLAB MANUFACTURING SDN BHD TAN YON CHIA

1. Barisan baiduri (M) Sdn Bhd 2. Bang Bang Studios Sdn Bhd Ariz Bin Ramli & 3 Lagi

ACUMEN SCIENTIFIC SDN BHD YEOW LIANG MING