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Issue #24/2017 15 June 2017

New This Week Case(s) of the Week MALAYSIA AIRLINES BHD v. TAN WEI HONG & ORS [2017] 6 CLJ 34 Latest Cases Legal Network Series CLJ 2017 Volume 6 (Part 1) Articles LNS Article(s) Legislation Highlights Principal Acts Amending Acts PU(A) PU(B) Legislation Alert

MALAYSIA AIRLINES BHD v. TAN WEI HONG & ORS [2017] 6 CLJ 34
COURT OF APPEAL, PUTRAJAYA
ROHANA YUSUF JCA, IDRUS HARUN JCA, MARY LIM JCA
[CIVIL APPEAL NO: W-02(IM)(NCVC)-737-04-2016]
20 DECEMBER 2016

TORT: Duty of care – Liability – Claim by family members of deceased passengers of missing flight – Action premised on breach of contract and duty of care – Whether entity deemed to have and will be taking over liabilities of Malaysian Airlines System ('MAS') – Whether entity successor company of MAS – Whether transfer of assets and liabilities limited – Whether assets and liabilities so specified excluded liabilities arising from loss of flight – Whether entity had nexus or link with any causes of action pleaded by claimants – Whether entity wrongly impleaded as party – Malaysian Airlines System Berhad (Administration) Act 2015, s. 29(1)

CIVIL PROCEDURE: Striking out – Writ and statement of claim – Claim by family members of deceased passengers of missing flight – Action premised on breach of contract and duty of care – Whether writ and statement of claim disclosed cause of action – Whether claim frivolous, vexatious and abuse of court process – Whether ought to be struck out – Rules of Court 2012, O. 18 r. 19(1), (b) & (d)

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Legal Network Series

[2016] 1 LNS 651	ROSLAN MOHAMAD SOM & SATU LAGI lwn. PP & KES LAIN	UNDANG-UNDANG JENAYAH: Rasuah - Penerimaan suapan - Pertuduhan dibawah s. 17(a) Akta Suruhanjaya Pencegahan Rasuah Malaysia 2009 ('SPRM') - Penerimaan suapan oleh ejen Lembaga Tabung Haji untuk menguruskan jemaah haji yang tidak layak menunaikan haji - Wang diterima melalui akaun bank - Sama ada elemen-elemen dibawah s. 17(a) SPRM telah dibuktikan - Sama ada anggapan dibawah s. 50 SPRM terpakai terhadap tertuduh - Sama ada kewujudan permintaan wang perlu dibuktikan - Sama ada jumlah wang yang diterima adalah material UNDANG-UNDANG JENAYAH: Akta Jenayah Komputer 1997 - Seksyen 5(1) - Pengubahsuaian kandungan pengkalan data - Tertuduh mempunyai kata laluan - Pengubahsuaian nama-nama jemaah haji di dalam kandungan pengkalan data sistem haji untuk Lembaga Tabung Haji - Sama ada capaian ke pengkalan data adalah tanpa kuasa - Sama ada elemen-elemen dibawah s. 5(1) Akta Jenayah Komputer 1997 ('AJK') telah dibuktikan - Sama ada anggapan menurut s. 8 AJK terpakai PROSEDUR JENAYAH: Pendakwaan - Kes pendakwaan - Rantaian keterangan - Pertuduhan dibawah s. 17(a) Akta Suruhanjaya Pencegahan Rasuah Malaysia 2009 ('SPRM') - Penerimaan suapan oleh ejen Lembaga Tabung Haji untuk menguruskan jemaah haji yang tidak layak menunaikan haji - Percanggahan keterangan saksi berkenaan jumlah wang suapan - Sama ada menjejaskan kes pendakwaan PROSEDUR JENAYAH: Pembelaan - Alibi - Notis secara bertulis gagal diberikan kepada pendakwa raya - Sama ada pembelaan alibi wajar diterima KETERANGAN: Saksi - Kredibiliti - Keterangan orang tengah - Sama ada orang tengah merupakan rakan sejenayah - Sama ada keterangan orang tengah boleh diterima - Sama ada keterangan sokongan diperlukan - Sama ada keterangan saksi dilindungi menurut s. 52 Akta Suruhanjaya Pencegahan Rasuah Malaysia 2009
[2016] 1 LNS 697	SAAD YATIM & YANG LAIN lwn. AZIRIZ AZIDI RAMBLI	GANTI RUGI: Tindakan untuk - Tuntutan kehilangan tanggungan - Kemalangan maut - Majikan simati telah memberikan keterangan mengesahkan pendapatan yang diterima simati sebelum meninggal dunia - Keterangan telah dikemukakan berkenaan sumbangan simati kepada keluarga - Sama ada tuntutan kehilangan tanggungan wajar dibenarkan LALULINTAS JALAN: Kecuaian - Kemalangan maut - Penentuan liabiliti - Perlanggaran antara motorsikal dan kereta - Serpihan kemalangan berada di laluan sah simati dan ditengah-tengah jalan - Sama ada liabiliti 50-50 adalah wajar
[2016] 1 LNS 882	PAVILION YIELDS SDN BHD v. UNIVERSAL TRUSTEE (MALAYSIA) BERHAD & ORS	TRUSTS: Trusts - Construction of trust deed - Aid to construction - Exceptions - Conduct of parties subsequent to trust deed - Conduct of parties shedding light on a particular term of contract - Whether court should make reference to conduct of parties subsequent to trust deed - Whether subsequent conduct may be called in aid to show how parties had understood a particular term to mean - Whether legitimate to examine past conduct of parties to determine how they interpreted terms of the trust deed - Whether clauses in trust deed were clear and unambiguous - Whether there was any basis to apply the contra proferentum rule CONTRACT: Estoppel - Estoppel by conduct - Parties giving a particular meaning to a term of a contract by conduct - Whether estoppel would apply to preclude parties from contending to the contrary
[2016] 1 LNS 903	NG CHIN SOON v. LEE BOON KEONG & ORS	CONTRACT: Claim for work done - Claim for value of work done - Contract to carry out earthwork - Plaintiff's calculation for value of work done solely based on construction drawing - Construction drawing prepared before commencement of earthwork - Dispute on value of work done - Denial of any outstanding amount owed for completed earthwork - Defendant relied on topography plan which was prepared based on actual survey carried out at site after earthwork had been completed - Whether comparison of topography plan and construction drawing would produce a more accurate measurement of earth which was removed from site - Whether topography plan reflected actual ground level after earthwork was completed
[2016] 1 LNS 915	CIMB BANK BERHAD v. EKRAN BERHAD	CIVIL PROCEDURE: Summary judgment - Banking - Action against guarantors - Borrower defaulted in repayment - No payment of outstanding sum despite reminders - Triable issues - Conclusiveness of certificate of indebtedness - Action commenced by different bank as a result of vesting order - Change of bank name - Privity of contract - Whether plaintiff had cause of action against defendant despite change of bank's name - Whether there was breakdown in casual link - Whether principles of contra proferentum applicable - Whether certificate of indebtedness had proven plaintiff's claim - Whether defendant produced evidence to rebut by showing manifest error - Whether there were triable issues

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CLJ 2017 Volume 6 (Part 1)

FEDERAL COURT

RHB Bank Bhd v. Wong Kok Leong & Wong Kok Sun & Anor
Zulkefli Ahmad Makinudin CJ (Malaya), Ahmad Maarop, Abu Samah Nordin, Ramly Ali, Zaharah Ibrahim FCJJ
(Land Law; Civil Procedure - Whether limitation could be used as ground to obtain court order to remove lien-holder's caveat) [2017] 6 CLJ 1 [FC]

COURT OF APPEAL

Chan Kay Siew & Ors v. Choo Ban Hong & Anor
Zaharah Ibrahim, Tengku Maimun Tuan Mat, Mohd Zawawi Salleh JJCA
(Contract - Agreement - Loan - Whether omission of any reference to interest constituted tax evasion) [2017] 6 CLJ 22 [CA]

Malaysia Airlines Bhd v. Tan Wei Hong & Ors
Rohana Yusuf, Idrus Harun, Mary Lim JJCA
(Tort; Civil Procedure - Duty of care - Liability - Claim by family members of deceased passengers of missing flight) [2017] 6 CLJ 34 [CA]

Tan Sri Dr M Mahadevan v. Dr Jeyalakshmi Ratnavale & Ors
David Wong Dak Wah, Umi Kalthum Abdul Majid, Hasnah Mohammed Hashim JJCA
(Succession - Will - Whether beneficiaries who had survived testator but subsequently died remained as beneficiaries) [2017] 6 CLJ 49 [CA]

HIGH COURT

Antero Harapan Sdn Bhd v. Restu Teguh Sdn Bhd
SM Komathy JC
(Company Law - Winding up - Application for direction by liquidator on how to proceed as company had no other assets) [2017] 6 CLJ 61 [HC]

Hasmalizza Ramli lwn. Faridah Deraman & Yang Lain
Zainal Azman Aziz H
(Tort - Liabiliti vikarius - Tort oleh kakitangan kerajaan - Sama ada Kerajaan bertanggungan secara vikarius) [2017] 6 CLJ 77 [HC]

Kerajaan Negeri Selangor v. Suruhanjaya Pilihan Raya Malaysia & Ors
Azizul Azmi Adnan J
(Administrative Law; Civil Procedure - Judicial review - Application for - Discovery) [2017] 6 CLJ 82 [HC]

Louis Vuitton Malletier v. Renown Incorporated
Wong Kian Kheong JC
(Civil Procedure - Service - Originating Summons - Whether plaintiff should apply for leave of court to serve originating summons out of jurisdiction) [2017] 6 CLJ 96 [HC]

Sime Darby Property Bhd v. Garden Bay Sdn Bhd & Another Case
Lee Swee Seng J
(Arbitration - Award - Setting aside - Demand for sums for works done) [2017] 6 CLJ 107 [HC]

SUBJECT INDEX

ADMINISTRATIVE LAW

Judicial review - Application for - Discovery - Seeking to challenge proposed recommendations by Election Commission ('EC') in connection with its review of division of Federal and State constituencies in Selangor - Whether electoral roll upon which recommendations were based on defective - Whether redelimitation exercise could be carried out based on electoral roll that does not contain voters' addresses - Whether cross examination of Chairman of EC would aid in establishing facts necessary to facilitate hearing of application - Whether locality codes for addressless voters in two previous redelimitation exercises valuable information - Whether necessary for fair disposal of application
Kerajaan Negeri Selangor v. Suruhanjaya Pilihan Raya Malaysia & Ors
(Azizul Azmi Adnan J) [2017] 6 CLJ 82 [HC]

ARBITRATION

Award - Setting aside - Demand for sums for works done - Counterclaim for delay in completing works - Arbitration award - Award on issues not presented - Application to High Court to set aside arbitral award - Whether arbitrator acted beyond jurisdiction - Whether there was breach of rules of natural justice - Whether award should be set aside - Whether award could be enforced
Sime Darby Property Bhd v. Garden Bay Sdn Bhd & Another Case
(Lee Swee Seng J) [2017] 6 CLJ 107 [HC]

CIVIL PROCEDURE

Action - Cause of action - Limitation - Whether relied upon as cause of action - Lien holder's caveats lodged against several pieces of land - Application for declaration that any action to enforce lien-holder's caveats barred by limitation - Whether limitation could be used as ground to obtain court order to remove lien-holder's caveat under s. 331(4) of National Land Code - Whether O. 83 of Rules of the High Court 1980 applicable - Whether there was basis for order for cancellation of lien-holder's caveats
RHB Bank Bhd v. Wong Kok Leong & Wong Kok Sun & Anor
(Zulkefli Ahmad Makinudin CJ (Malaya), Ahmad Maarop, Abu Samah Nordin, Ramly Ali, Zaharah Ibrahim FCJJ) [2017] 6 CLJ 1 [FC]

Declaration - Application for - Lien-holder's caveats lodged against several pieces of land - Application for declaration that any action to enforce lien-holder's caveats barred by limitation - Whether limitation relied upon as cause of action - Whether limitation could be used as ground to obtain court order to remove lien-holder's caveat under s. 331(4) of National Land Code - Whether O. 83 of Rules of the High Court 1980 applicable - Whether there was basis for order for cancellation of lien-holder's caveats
RHB Bank Bhd v. Wong Kok Leong & Wong Kok Sun & Anor
(Zulkefli Ahmad Makinudin CJ (Malaya), Ahmad Maarop, Abu Samah Nordin, Ramly Ali, Zaharah Ibrahim FCJJ) [2017] 6 CLJ 1 [FC]

Discovery - Judicial review - Application for - Seeking to challenge proposed recommendations by Election Commission (EC) in connection with its review of division of Federal and State constituencies in Selangor - Whether electoral roll upon which recommendations were based on defective - Whether redelimitation exercise could be carried out based on electoral roll that does not contain voters' addresses - Whether cross examination of Chairman of EC would aid in establishing facts necessary to facilitate hearing of application - Whether locality codes for addressless voters in two previous redelimitation exercises valuable information - Whether necessary for fair disposal of application
Kerajaan Negeri Selangor v. Suruhanjaya Pilihan Raya Malaysia & Ors
(Azizul Azmi Adnan J) [2017] 6 CLJ 82 [HC]

Service - Originating Summons ('OS') - Registration of trade mark by defendant company - Defendant company provided address in Japan and address of service at Kuala Lumpur to Registrar ('defendant's address with Registrar') - Plaintiff applied to expunge defendant's registered trade mark - Service of OS to defendant's address with Registrar - Whether OS could be lawfully served on defendant's address with Registrar - Whether plaintiff should apply for leave of court to serve OS out of jurisdiction - Trade Marks Act 1976, s. 46(1)(b) & 79 - Rules of Court 2012, O. 11 r. 9(1)
Louis Vuitton Malletier v. Renown Incorporated
(Wong Kian Kheong JC) [2017] 6 CLJ 96 [HC]

Striking out - Writ and statement of claim - Claim by family members of deceased passengers of missing flight - Action premised on breach of contract and duty of care - Whether writ and statement of claim disclosed cause of action - Whether claim frivolous, vexatious and abuse of court process - Whether ought to be struck out - Rules of Court 2012, O. 18 r. 19(1), (b) & (d)
Malaysia Airlines Bhd v. Tan Wei Hong & Ors
(Rohana Yusuf, Idrus Harun, Mary Lim JJCA) [2017] 6 CLJ 34 [CA]

COMPANY LAW

Winding up - Application for direction - Petitioner notified liquidator of intention to purchase land - Liquidator obtained valuation report stating market value was RM17.3 million - Petitioner agreed to advance required amount to acquire land from State Government provided liquidator sold land to it for consideration of RM17.3 million - Contributories objected and required liquidator to accept advance as loan from petitioner to acquire land and sell it by tender or auction - Application for direction by liquidator on how to proceed as company had no other assets - Whether liquidator could advance from petitioner to acquire land and sell it to petitioner - Whether liquidator faced with difficulty - Whether land was for residential or commercial use - Whether liquidator was partial - Companies Act 1965, ss. 236 & 237
Antero Harapan Sdn Bhd v. Restu Teguh Sdn Bhd
(SM Komathy JC) [2017] 6 CLJ 61 [HC]

CONTRACT

Agreement - Loan - Borrower obtained loan from lender and executed memorandum of charge over lands - Memorandum of charge for land stated that loan to be repaid within one year - Memorandum of charge varied by memorandum of variation charge - Memorandums showed that there was no interest charged - Interest not stated as income tax would be payable in interest even though amount had not been received - Whether omission of any reference to interest constituted tax evasion - Parties agreed in letter to pay interest - Whether letter admissible - Whether contract valid - Evidence Act 1950, s. 91 - Contracts Act 1950, s. 24
Chan Kay Siew & Ors v. Choo Ban Hong & Anor
(Zaharah Ibrahim, Tengku Maimun Tuan Mat, Mohd Zawawi Salleh JJCA) [2017] 6 CLJ 22 [CA]

LAND LAW

Caveats - Lien holder's caveats lodged against several pieces of land - Application for declaration that any action to enforce lien-holder's caveats barred by limitation - Whether limitation relied upon as cause of action - Whether limitation could be used as ground to obtain court order to remove lien-holder's caveat under s. 331(4) of National Land Code - Whether O. 83 of Rules of the High Court 1980 applicable - Whether there was basis for order for cancellation of lien-holder's caveats
RHB Bank Bhd v. Wong Kok Leong & Wong Kok Sun & Anor
(Zulkefli Ahmad Makinudin CJ (Malaya), Ahmad Maarop, Abu Samah Nordin, Ramly Ali, Zaharah Ibrahim FCJJ) [2017] 6 CLJ 1 [FC]

SUCCESSION

Will - Administration of estate - Whether beneficiaries who had survived testator but subsequently died remained as beneficiaries - Intention of testator - Whether court to read will without regard to consequences of any rule of law or canon of construction - Whether there was intention of disenfranchisement upon death of any beneficiary - Whether court could infer disenfranchisement
Tan Sri Dr M Mahadevan v. Dr Jeyalakshmi Ratnavale & Ors
(David Wong Dak Wah, Umi Kalthum Abdul Majid, Hasnah Mohammed Hashim JJCA) [2017] 6 CLJ 49 [CA]

TORT

Duty of care - Liability - Claim by family members of deceased passengers of missing flight - Action premised on breach of contract and duty of care - Whether entity deemed to have and will be taking over liabilities of Malaysian Airlines System ('MAS') - Whether entity successor company of MAS - Whether transfer of assets and liabilities limited - Whether assets and liabilities so specified excluded liabilities arising from loss of flight - Whether entity had nexus or link with any causes of action pleaded by claimants - Whether entity wrongly impleaded as party - Malaysian Airlines System Berhad (Administration) Act 2015, s. 29(1)
Malaysia Airlines Bhd v. Tan Wei Hong & Ors
(Rohana Yusuf, Idrus Harun, Mary Lim JJCA) [2017] 6 CLJ 34 [CA]

INDEKS PERKARA

TORT

Liabiliti vikarius - Liabiliti Kerajaan - Tort oleh kakitangan kerajaan - Pegawai penyiasat melakukan tort pencerobohan ke atas plaintif - Sama ada Kerajaan bertanggungan atas perbuatan pegawai penyiasat - Samin Hassan v. Government of Malaysia - Sama ada pegawai penyiasat adalah 'frolic of his own' - Sama ada Kerajaan bertanggungan secara vikarius
Hasmalizza Ramli lwn. Faridah Deraman & Yang Lain
(Zainal Azman Aziz H) [2017] 6 CLJ 77 [HC]

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LNS Article(s)

1. PELABURAN BERLANDASKAN SYARIAH ISLAM: PERBEZAAN DI ANTARA PELABURAN ISLAM DENGAN KONVENSIONAL DI MALAYSIA ^{[Read excerpt]}
   AHMAD MAHADI RAZALI⁺AHMAD AJRUDDIN MAHZUN⁺MOHAMED HIZAM MOHD NORR⁺ABDUL HALIM ZULKIFLI⁺ [2017] 1 LNS(A) xlvii

[2017] 1 LNS(A) xlvii



MALAYSIA

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PELABURAN BERLANDASKAN SYARIAH ISLAM:
PERBEZAAN DI ANTARA PELABURAN ISLAM DENGAN KONVENSIONAL DI MALAYSIA

AHMAD MAHADI RAZALI⁺
AHMAD AJRUDDIN MAHZUN⁺
MOHAMED HIZAM MOHD NORR⁺
ABDUL HALIM ZULKIFLI⁺

Abstrak

Pelaburan adalah komitmen wang atau modal untuk membeli instrumen kewangan atau aset lain untuk mendapatkan hasil yang menguntungkan dalam bentuk bayaran faedah, pendapatan terkumpul dan peningkatan nilai aset. Pelaburan menurut kamus dewan bermaksud jumlah wang yang dilaburkan dalam sesuatu usaha niaga. Pelaburan boleh meliputi pelbagai aspek ekonomi seperti kewangan, perniagaan dan kerajaan. Namun begitu, pelaburan yang wujud sebahagiannya tidak memenuhi tuntutan syarak ataupun dikategorikan sebagai syubhat. Oleh itu, objektif kajian ini untuk menganalisis ciri-ciri pelaburan yang berteraskan syariah dengan lebih terperinci. Sumber yang digunakan didalam kajian ini adalah data sekunder daripada laman web, majalah, artikel jurnal dan buku rujukan. Garis panduan dari Badan Kerajaan (Suruhanjaya Sekuriti), laporan tahunan penyata kewangan bank dan laporan tahunan syarikat pelaburan (PNB) juga digunakan sebagai sumber rujukan. Secara keseluruhan, hasil kajian memperlihatkan jurang jumlah pendapatan ataupun pulangan diantara pelaburan Islam dan konvensional di Malaysia.

Kata Kunci: Syarak, syubhat, instrument, konvensional.

. . .

+ Fakulti Tamadun Islam, UTM, Skudai, Johor. Emel:halim-zulkifli@utm.my.

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2. THE EVOLUTION OF COMPETITION ACT 2010 AND THE FACTORS THAT DELAYED ENACTMENT OF LAW AND DETERMINED ITS CONTENT* ^{[Read excerpt]}
   SUNITHA SIVAKUMARAN** [2017] 1 LNS(A) xlviii

[2017] 1 LNS(A) xlviii



MALAYSIA

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THE EVOLUTION OF COMPETITION ACT 2010 AND THE FACTORS THAT
DELAYED ENACTMENT OF LAW AND DETERMINED ITS CONTENT*

SUNITHA SIVAKUMARAN**

Abstract

The purpose of competition law is to secure a competitive marketplace and thus protect the consumer from unfair and anti-competitive practices. Malaysia recognised the need for such a law in 1993. However, the Competition Act was only introduced in Parliament in 2010. The law initially intended to cover both consumer protection and competition regulation for all sectors of the economy. However, the present Act has been pared down substantially to only govern competition regulation. It also excludes certain sectors and only covers anti-competitive agreements and practices that harm free competition and abuse of dominant position. Mergers and acquisitions have been omitted. The purpose of this paper is to trace the factors that delayed its enactment and determined its content. A qualitative approach is adopted to obtain the relevant information. It is found that factors such as the New Economic Policy, Privatisation and Liberalisation Policy, Industrial Policy and Sector based Regulation have a role not only in the delay but also the content of the Act. Malaysia was forced to enact the Act because the ASEAN Economic Community initiative required that there be a competition law in each ASEAN country by 2015.

. . .

* Reviewed by Professor Dr Nazura Abdul Manap, Deputy Director, Centre for Collaborative Innovation, Universiti Kebangsaan Malaysia.

** (Masukkan maklumat Sunitha seperti dalam artikel pertamanya Excessive Pricing)

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