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Issue #10/2021 11 March 2021

New This Week Case(s) of the Week PP v. KUALA DIMENSI SDN BHD & ORS [2021] 3 CLJ 198 Appeal Updates Appeal Updates Latest Cases Legal Network Series CLJ 2020 Volume 3 (Part 2) Articles CLJ Article(s) LNS Article(s) Legislation Highlights Principal Acts Amending Acts PU(A) PU(B) Legislation Alert

PP v. KUALA DIMENSI SDN BHD & ORS [2021] 3 CLJ 198
FEDERAL COURT, PUTRAJAYA
VERNON ONG LAM KIAT FCJ; ZABARIAH MOHD YUSOF FCJ; HASNAH MOHAMMED HASHIM FCJ
[CRIMINAL APPEAL NO: 05(L)-159-07-2018 (W)]
13 JANUARY 2021

CRIMINAL LAW: Money laundering - Forfeiture - Application for forfeiture of properties by Public Prosecutor - Whether property obtained as result of or in connection with money laundering - Whether predicate offence committed - Whether prosecution adduced sufficient evidence to support application for forfeiture - Whether statutory requirement for forfeiture satisfied - Whether properties ought to be forfeited - Anti-Money Laundering and Anti-Terrorism Financing Act 2001, ss. 4(1) & 56(1)

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1. Malaysian Shipping Agencies Sdn Bhd v. MTC Engineering Sdn Bhd [2019] 1 LNS 778 (CA) overruling the High Court case of Malaysian Shipping Agencies Sdn Bhd v. MTC Engineering Sdn Bhd [2018] 1 LNS 1897

2. Gee Eng Wah v. Teoh Eng Keong & Anor [2019] 1 LNS 783 (CA) affirming the High Court case of Teoh Eng Keong & Anor v. Gee Eng Wah; Geoscience Engineering Sdn Bhd (Third Party) [Guaman Sivil No.: 22NCVC-174-04/2013]

Legal Network Series

[2018] 1 LNS 2182	IBRAHIM MUSA RIFA'I lwn. PP 1. Inferen yang munasabah wajar dibuat bahawa tertuduh mempunyai milikan dan pengetahuan akan dadah-dadah berbahaya yang telah dijumpai bersama tertuduh di dalam rumah di mana tertuduh merupakan penghuni tunggal dan apabila tidak ada akses oleh orang lain selain daripada tertuduh. 2. Penafian berkenaan milikan dadah yang dijumpai di dalam rumah tertuduh dengan mendakwa kewujudan orang lain di rumah tersebut tetapi pada masa yang sama tertuduh teragak-agak untuk meletakkan kesalahan pada orang lain adalah jelas tidak cukup untuk mematahkan anggapan di bawah s. 37(da) Akta Dadah Berbahaya 1952. UNDANG-UNDANG JENAYAH: Dadah berbahaya - Pengedaran - Mens rea - Pengetahuan berkenaan dadah - Tertuduh merupakan penghuni tunggal di rumah di mana dadah dijumpai - Ketiadaan akses oleh orang lain - Sama ada tertuduh yang tinggal di rumah secara bersendirian membangkitkan inferen yang paling munasabah bahawa tertuduh mempunyai milikan dan pengetahuan ke atas dadah - Sama ada tertuduh mempunyai pengetahuan akan jenis dan bentuk dadah PROSEDUR JENAYAH: Pembelaan - Penafian - Pertuduhan pengedaran dadah berbahaya - Dadah dijumpai di dalam rumah tertuduh - Tertuduh mendakwa kewujudan akses oleh orang lain di rumah - Tertuduh teragak-agak dalam meletakkan kesalahan pada orang lain - Sama ada pembelaan tertuduh cukup untuk mematahkan anggapan di bawah s. 37(da) Akta Dadah Berbahaya 1952 KETERANGAN: Kerelevanan - Tingkah laku tertuduh - Kelakuan yang kemudian - Tertuduh telah memandu arah pegawai serbuan dan menunjukkan tempat dadah - Sama ada perbuatan menunjukkan tempat dadah boleh diterima sebagai keterangan yang kemudian di bawah s. 8 Akta Keterangan 1950 KETERANGAN: Saksi - Kebolehpercayaan - Budi bicara hakim bicara - Sama ada hakim bicara mempunyai budi bicara untuk menilai keterangan dan kebolehpercayaan seseorang saksi - Sama ada budi bicara hakim bicara wajar diganggu oleh mahkamah rayuan KETERANGAN: Inferen bertentangan - Kegagalan memanggil saksi - Kelompangan dalam kes pendakwaan - Sama ada kegagalan memanggil pegawai yang menyertai pasukan serbuan sebagai saksi telah menjejaskan kes pendakwaan - Sama ada pihak pendakwaan telah mengemukakan keterangan yang cukup - Akta Keterangan 1950, s. 114(g) Bagi pihak perayu - Haresh Mahadevan & Ramzani Idris; T/n Haresh Mahadevan & Co Bagi pihak responden - Mangai, Timbalan Pendakwa Raya; Jabatan Peguam Negara
[2018] 1 LNS 2185	SRI DAMANSARA SDN BHD lwn. TRIBUNAL TUNTUTAN PEMBELI RUMAH & SATU LAGI DAN SATU LAGI KES Tarikh pengiraan ganti rugi kelewatan penyerahan hakmilik adalah bermula pada tarikh bayaran fi tempahan. Pengiraan ganti rugi penyerahan hakmilik adalah berasaskan kepada harga dalam perjanjian jual beli dan bukan berasaskan kepada harga yang dibayar oleh pembeli setelah penolakan rebat yang diberikan oleh pemaju. Pengiraan ganti rugi yang berasaskan harga dalam perjanjian jual beli tidak membangkitkan doktrin pengkayaan tidak adil. UNDANG-UNDANG PENTADBIRAN: Semakan kehakiman - Certiorari - Permohonan untuk membatalkan awad Tribunal Tuntutan Pembeli Rumah ('Tribunal') - Permohonan oleh pemaju terhadap pemberian jumlah gantirugi kelewatan penyerahan hakmilik kosong rumah dan fasiliti bersama - Sama ada keputusan Tribunal yang memutuskan tarikh pengiraan ganti rugi kelewatan penyerahan hakmilik bermula dari tarikh bayaran fi tempahan adalah betul - Sama ada pengiraan awad yang berasaskan harga belian dalam perjanjian jual beli adalah wajar - Sama ada pengiraan awad berasaskan harga belian dalam penjanjian jual beli telah terjumlah kepada pengkayaan tidak adil Bagi pihak pemohon - S Rampal & Emily Wong; T/n Norendra & Yap Bagi pihak responden - Lee Pei Pei; T/n Wei Li Tan & Cheong
[2019] 1 LNS 700	POR LIN CHIANG v. TANJUNG AIRCOND ENGINEERING SDN BHD & ANOR In an application for leave to bring a derivative action on behalf of a company against the director and shareholder, the plaintiff must establish that the proposed legal action is in the best interest of the company, legitimate, arguable and with a semblance of merit. COMPANY LAW: Derivative action - Leave - Application for leave to bring action on behalf of defendant company - Proposed action against a shareholder and director concerning breach of fiduciary duty and/or wrongful misrepresentation and/or passing-off - Whether proposed action was in best interest of defendant company - Whether there was reasonable basis for complaint against director and shareholder - - Whether proposed action was legitimate and arguable with a semblance of merit - Whether requirements of s. 348 of Companies Act 2016 were fulfilled For the plaintiff - Choo Kian Ming; M/s See, Ramsun & Tan For the 2nd defendant - Stephen Chua; M/s Wong & Loh
[2019] 1 LNS 702	BANK MUAMALAT MALAYSIA BERHAD v. PROLINK MARKETING SDN BHD & ORS 1. Instructions issued by the Small Debt Resolution Scheme ('SDRS') Committee is merely an advice and not mandatory in nature warranting compliance by participating financial institutions. The advice of the SDRS Committee to halt legal proceedings against the borrower does not estop a financial institution from pursuing legal action against a borrower and guarantor. 2. Liability of a guarantor is not dependent or secondary to the liability of the borrower when the guarantor had agreed to be liable for the indebtedness as a principal debtor. A guarantor's liability for indebtedness will not be absolved or discharged if the bank decides not to pursue a claim against the borrower. CIVIL PROCEDURE: Summary judgment - Banking - Guarantee - Triable issues - Unconditional and irrevocable guarantee - Existence of instruction from Small Debt Resolution Scheme ('SDRS') Committee to all financial institutions to halt legal proceedings against borrower - Whether instruction of SDRS was a mere advice - Whether instruction of SDRC Committee is mandatory to be complied with - Whether a financial institution could pursue legal action against guarantor despite existence of advice by SDRS Committee to halt all legal proceedings against borrower - Whether there were issues to be tried BANKING: Guarantee and indemnity - Liability of guarantor - Guarantor had agreed to be liable as principal debtor - Bank decided not to pursue claim against borrower following restraint order - Whether liability for indebtedness of guarantor had been absolved or discharged when bank decided not to pursue claim against borrower - Whether liability of guarantor was dependent or secondary to liability of borrower For the plaintiff - Marina Nasution; M/s Shearn Delamore & Co For the defendants - S Sri Nagavarnan; M/s Rizal Many & Logan
[2019] 1 LNS 813	MS ELEVATORS ENGINEERING SDN BHD v. JASMURNI CONSTRUCTION SDN BHD AND ANOTHER APPEAL 1. Statement of final account which has been accepted by both the subcontractor and the main contractor and further, has not been challenged in any proceedings should be treated as the final value of the subcontract works. A subcontractor is entitled to amend its claim to reflect the amount stated in the statement of final account although it was issued after the suit was filed. 2. The Court is entitled to adopt a common sense approach in assessing damages for delay in completion of works when the main contractor is unable to specify the number of days of delay solely caused by the subcontractor and further when the main contractor was unable to produce any other proof of reasonable loss or compensation that it was entitled to. CONTRACT: Building contract - Claim for work done - Subcontractor's claim against main contractor - Claim for balance sum relating to supply, installation and commissioning of lifts - Main contractor alleged payment for work done subject to issuance of payment certificate - Statement of final account which valued final contract sum was issued after suit was filed - Amount claimed was later amended in accordance with statement of final account - Statement of final account was executed by architect, employer, subcontractor and main contractor - Whether statement of final account was unchallenged and accepted by parties - Whether payment certificate was a prerequisite for payment to be made by main contractor - Whether parties had accepted statement of final account - Whether subcontractor's claim was premature CONTRACT: Building contract - Liquidated and ascertained damages ('LAD') - Main contractor's claim for LAD against subcontractor - Delay on part of subcontractor in completing work - Main contractor and other contractors contributed to delay - Certificate of practical completion not issued as a result of incomplete work - Subcontractor failed to apply for any extension of time - Main contractor was unable to specify number of days of delay caused solely by subcontractor - Whether there was delay on part of subcontractor in completing work - Whether delay was solely caused by subcontractor - Whether main contractor was able to produce any other proof of reasonable loss or compensation that it was entitled to - Whether Court was entitled to adopt a common sense approach in assessing damages For the appellant - David Samuel; M/s Chambers of Firdaus For the respondent - CC Kok; M/s Ong & Kok

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CLJ 2020 Volume 3 (Part 2)

Termination of an agreement ends the parties' obligations. The party in breach must be notified of the identified reason for termination as well as be given the opportunity to rectify the breach. Clauses relating to termination must be strictly adhered to; and thus, termination is not permitted except with express provision to that effect.
Catajaya Sdn Bhd v. Shoppoint Sdn Bhd & Ors [2021] 3 CLJ 159 [FC]

• SUBJECT
• CORAM
• COUNSEL

There is no public policy that recognises that the defence of absolute privilege is automatically invoked when a police report is lodged and that action, including disciplinary proceedings, cannot be taken against the maker. There is no compelling justification for extending absolute privilege to a police report in favour of the maker of the report who lodged the same with ill intent and for a purpose other than to kick-start the investigation of a crime.
Nor Aziz Mat Isa v. Sun Teoh Tia (SAC) & Ors [2021] 3 CLJ 186 [FC]

• SUBJECT
• CORAM
• COUNSEL

In an application for an order of forfeiture of property under s. 56(1) of the Anti-Money Laundering, Anti-Terrorism Financing Act 2001 ('AMLATFA'), where there is no prosecution, the standard of proof applicable in order to determine whether the property was obtained as a result of or in connection with an offence under s. 4(1) of the AMLATFA is the standard proof required in civil proceedings ie on the balance of probabilities. The prosecution has the duty to prove: (i) the existence of a predicate offence, the evidence and basis upon which the commission of the offence has been established; (ii) the proceeds or 'the subject-matter of' the predicate offence; and (iii) the manner the respondents have abetted or participated in the commission of the predicate offence.
PP v. Kuala Dimensi Sdn Bhd & Ors [2021] 3 CLJ 198 [FC]

• SUBJECT
• CORAM
• COUNSEL

The legislative intent of ss. 14, 15 and 16 of the Land (Group Settlement Areas) Act 1960 is essentially to prevent fragmentation of land and to maintain the smallholdings at eight acres per family. The word 'proprietor' has to be taken to mean 'holder'. Section 16 of the Act prohibits upon the death of a holder, the distribution of a holding among the beneficiaries; it is incumbent on the beneficiaries to agree that their interests in the land be assigned to a single holder, failing which the Collector of Land Revenue (now called Land Administrator) 'has the right to close the holding and dispose the proceed'.
Ambikamurali PV Govindan v. Kannan Deban PV Govindan & Another Appeal [2021] 3 CLJ 220 [CA]

• SUBJECT
• CORAM
• COUNSEL

An advocate and solicitor who, upon the instruction of a tout, files a running-down action without meeting the client and without collecting any deposit towards fees or disbursements, could not later disavow that there was any solicitor-client relationship with the party named as the plaintiff in the said action. By filing the action for and on behalf of the said plaintiff, there is an 'implied retainer' giving rise to a solicitor-client relationship between the solicitor and the said plaintiff, as a client. Following that, the solicitor owes a duty of care to the plaintiff in the action to protect his/her interest regardless of whether the said plaintiff had paid any fees to the solicitor; whether the said plaintiff was contactable; or whether the solicitor had met the said plaintiff. The absence of a warrant to act does not preclude an implied retainer.
Lee Kuang Guat v. Chiang Woei Chien [2021] 3 CLJ 237 [CA]

• SUBJECT
• CORAM
• COUNSEL

Seorang pegawai Lembaga Pemasaran Pertanian Persekutuan ('FAMA'), sebuah badan berkanun, hanya boleh memasuki perjanjian yang mematuhi prosedur dan tatacara dan juga bidang kuasa jawatannya seperti yang diperuntukkan bawah undang-undang badan berkanun tersebut. Apa-apa perjanjian yang dimasuki bertentangan dengan Akta Lembaga Pemasaran Pertanian Persekutuan 1965 adalah batal dan tidak mengikat FAMA.
Teratai Sanjung Holdings (M) Sdn Bhd lwn. Lembaga Pemasaran Pertanian Persekutuan [2021] 3 CLJ 283 [CA]

• SUBJECT
• CORAM
• COUNSEL

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CLJ Article(s)

1. RESTRICTIONS ON AIRBNB, A CRITICAL ANALYSIS ON THE RECENT FEDERAL COURT'S DECISION IN INNAB SALIL & ORS v. VERVE SUITES MONT' KIARA MANAGEMENT CORPORATION [2020] 10 CLJ 285 ^{[Read excerpt]}
   by KEVIN DE ROZARIO* [2021] 3 CLJ(A) i

[2021] 3 CLJ(A) i



MALAYSIA

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RESTRICTIONS ON AIRBNB, A CRITICAL ANALYSIS ON THE RECENT FEDERAL COURT'S DECISION IN INNAB SALIL & ORS v. VERVE SUITES MONT' KIARA MANAGEMENT CORPORATION [2020] 10 CLJ 285

by
KEVIN DE ROZARIO*

Introduction

Can a proprietor of a parcel in a Strata Scheme engage in short-term tenancies commonly known as Airbnb if the House Rule provide for such a restriction and prohibition?

Facts

The respondent/plaintiff was a management corporation which was incorporated under the Strata Titles Act 1985 to manage a development known as 'Verve Suits'. The category of land use was 'building' with the express condition that the land shall be used for commercial building with the purpose of service apartments and commercial only.

The appellants/defendants were parcel owners in 'Verve Suites' who had leased their respective parcels for short and long-term rental. The basis and crux of this matter was that on 18 November 2015, the Commissioner of Building (COB) of Kuala Lumpur issued a circular ie, 2015/2016 ('Circular') to curb and/or stop using buildings in and around Kuala Lumpur for short-term rental.

In accordance with the said Circular, the plaintiff held an Extraordinary General Meeting (EGM) proposing a resolution to enact House Rule No 3 strictly prohibiting short-term rentals such as Airbnb, klsuites.com and other similar services. An owner would be liable for penalties in the event he engages in such activities.

. . .

* Senior Partner, Messrs Khairuddin Ngiam & Tan

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LNS Article(s)

1. CONTRACTUAL, TORTIOUS AND STATUTORY? THE EMPLOYER'S DUTY TO PROVIDE A SAFE WORKPLACE+ ^{[Read excerpt]}
   by John Wilson* Kieran Pender** [2021] 1 LNS(A) xxxi

[2021] 1 LNS(A) xxxi



AUSTRALIA

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CONTRACTUAL, TORTIOUS AND STATUTORY?
THE EMPLOYER'S DUTY TO PROVIDE A SAFE WORKPLACE+

by
John Wilson*
Kieran Pender**

John Wilson and Kieran Pender discuss the obligation of employers to provide safe workplaces for their employees in light of the potential for Covid-19 transmission within the workplace.

“[t]he content of the duty of care and what steps an employer ought reasonably to have taken to avoid an injury that was reasonably foreseeable are forward-looking. The question necessarily arises after the injury has occurred, but care should be exercised to avoid framing the content through the lens of litigious hindsight.”

Victorian Court of Appeal in The Age Company Pty Ltd v. YZ (a pseudonym)^[1]

It is perhaps a truism of the common law that just because a proposition is well-established does not mean it will no longer provoke litigious controversy. Many legal principles developed in the 18th and 19th century remain hotly-contested in our court-rooms today.

. . .

+Published with kind permission of the Law Society of the Australian Capital Territory. See Ethos Summer 2020, Issue 258.

*John Wilson is the Managing Legal Director at Bradley Allen Love Lawyers.

**Kieran Pender is a visiting fellow at the ANU College of Law.

The views expressed here are their own. They thank Madeleine Castles for her research assistance.

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2. SUHAKAM: EMPOWERED TO INQUIRE INTO CUSTODIAL DEATH CASES? ^{[Read excerpt]}
   by M. Visvanathan* [2021] 1 LNS(A) xxxii

[2021] 1 LNS(A) xxxii



MALAYSIA

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SUHAKAM: EMPOWERED TO INQUIRE INTO CUSTODIAL DEATH CASES?

by
M. Visvanathan*

Background

My first taste of a death inquiry case was in early 2001 or thereabouts. I represented two brothers in a murder trial^[1] involving 4 accused persons. Since it was a murder trial, all four were remanded in the Sungai Buloh prison pending the outcome of the trial. Sometime before the conclusion of the trial in the High Court, the younger of the 2 brothers was admitted to the Selayang Hospital for some mysterious illness. He later died and there was an inquest into his death at the Selayang Magistrate's court. I participated in the inquest.

Next came the infamous Teoh Beng Hock case of 2009.^[2] I remember getting a call from Mr Edmund Bon who had wanted the Bar to be involved in the impending inquest at the Shah Alam Magistrate’s court. He was seeking volunteer lawyers to be on the Bar Council’s watching brief team. Later I got involved in the case of Gunasegaran a/l Rajasundaram^[3] who, in a remarkable coincidence, also met his untimely demise on 16.7.2009, the very same day the body of the late Mr Teoh Beng Hock was discovered.

. . .

*Advocate & Solicitor, Messrs Saibullah MV. Nathan & Co. Chairman, Eliminating Deaths and Abuse in Custody Together (EDICT) 26th January 2021.

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3. SEXUAL SLAVERY IN NIGER AS VIOLATION OF HUMAN RIGHTS: A CRITICAL APPRAISAL ^{[Read excerpt]}
   by Latifa Yerima Bako*Dr. Shahrul Mizan Ismail** [2021] 1 LNS(A) xxxiii

[2021] 1 LNS(A) xxxiii



INTERNATIONAL

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SEXUAL SLAVERY IN NIGER AS VIOLATION OF HUMAN RIGHTS: A CRITICAL APPRAISAL

by
Latifa Yerima Bako*
Dr. Shahrul Mizan Ismail**

Abstract

The sexual exploitation of girls in Niger is a common practice that has been part of society for several decades now. There have been few to no significant studies on this issue. Thus, this research has two main objectives. The first objective of this paper is to discuss and analyse these cultural practices against International Human Rights. The second objective is to examine the states' duty under international human rights law with regards to sexual slavery. The paper is a doctrinal legal research with the use of qualitative data. This refers to the interpretation of existing domestic, regional and international instruments. This current research is very significant in educating the youth about their human rights and compelling the state to take stronger actions against sexual slavery. This research has reached the conclusion that the sexual exploitation of young girls constitute major human rights violations under all legal instruments referred to in this study and cannot be exempted on the basis of local culture. The state has also failed to a large degree in upholding its duties under international human rights law.

. . .

*National University of Malaysia, FUU. Latifayerima@yahoo.com,

**Associate Professor, Faculty of Law, National University of Malaysia (UKM). E-mail: shahrulmizan@ukm.edu.my.

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