Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Good faith in contract

  • 4 Oct 2022

    LAI FEE AND ANOTHER WONG YU VEE AND OTHERS

    Citation
    02(f)-35-04/2022(B) (Mahkamah Persekutuan)
    Court
    f
    Case number
    02(f)-35-04/2022(B) (Mahkamah Persekutuan)

    On the uncontroverted facts the defendants incorporated and used dormant companies and a third party vehicle, procured immediate transfer of the asset to themselves while leaving contractual liability with an undercapitalised company, and therefore carried on business with intent to defraud within s540 CA2016; the lower courts failed to appreciate the totality of evidence; the defendants are barred by res judicata from relitigating misrepresentation already rejected in Suit 128; the principle that law does not expect people to arrange affairs on basis others may commit fraud is consistent wit…

  • 4 Oct 2022

    02(f)-35-04/2022(B) (Mahkamah Persekutuan)

    Citation
    02(f)-35-04/2022(B) (Mahkamah Persekutuan)
    Court
    f
    Case number
    02(f)-35-04/2022(B) (Mahkamah Persekutuan)

    On the uncontroverted facts the defendants incorporated and used dormant companies (Centennial and Westhill), procured immediate transfer of vendor asset to themselves while leaving contractual payment obligations with a company that had no funds, and thereby created corporate layers to insulate themselves; those circumstances established dishonesty by ordinary standards and subjective knowledge such that s540 CA 2016 applied and directors are personally liable; the defendants are estopped by res judicata from re‑raising the misrepresentation defence previously rejected; the principle that la…