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Issue #39/2021 30 September 2021

New This Week Case(s) of the Week BURSA MALAYSIA SECURITIES BHD v. MOHD AFRIZAN HUSAIN [2021] 8 CLJ 675 DATUK DR HJ HAMID SULTAN ABU BACKER v. PENGERUSI JAWATANKUASA ETIKA HAKIM-HAKIM ('CHAIRMAN OF THE JUDGES' ETHICS COMMITTEE') & ANOR [2021] 8 CLJ 708 JUDICIAL QUOTES  Latest Cases Legal Network Series CLJ 2021 Volume 8 (Part 5) Articles LNS Article(s) Legislation Highlights Principal Acts Amending Acts PU(A) PU(B) Legislation Alert

BURSA MALAYSIA SECURITIES BHD v. MOHD AFRIZAN HUSAIN [2021] 8 CLJ 675
COURT OF APPEAL, PUTRAJAYA
LAU BEE LAN JCA; ABU BAKAR JAIS JCA; GUNALAN MUNIANDY JCA
[CIVIL APPEAL NO: W-02(A)-696-06-2020]
02 JULY 2021

ADMINISTRATIVE LAW: Judicial review - Certiorari - Quashing decisions of Bursa Malaysia Securities Berhad ('Bursa Malaysia') Listing Committee ('LC') and Appeals Committee ('AC') - Appeal against - Duties of liquidator - Whether breached - Whether liquidator of listed corporation bound to comply with ACE Market Listing Requirements ('ACE LR') - Whether liquidator expected to continue making quarterly announcements when public listed company ceased operations - Whether mandatory for Bursa Malaysia to de-list wound up listed corporation - Construction to be accorded to r. 16.11(2) of ACE LR - 'may de-list' and 'shall de-list' - Where word 'shall' is employed - Literal and strict interpretation - Adoption of - Whether Bursa Malaysia could not exercise any discretion except to de-list listed corporation upon a winding up order - Whether decisions of LC and AC tainted with illegality and amenable to judicial review - Capital Markets and Services Act 2007, s. 11 - Companies Act 2016, ss. 477, 480, 483, 484, 489, 514

STATUTORY INTERPRETATION: Construction of statutes - Mandatory or discretionary - Rule 16.11(2) of ACE Market Listing Requirements - 'may de-list' and 'shall de-list' - Whether word 'shall' is employed - Literal and strict interpretation - Adoption of - Whether construed as mandatory - Whether Bursa Malaysia Securities Berhad could not exercise any discretion except to de-list listed corporation upon winding up order

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DATUK DR HJ HAMID SULTAN ABU BACKER v.
PENGERUSI JAWATANKUASA ETIKA HAKIM-HAKIM ('CHAIRMAN OF THE JUDGES' ETHICS COMMITTEE') & ANOR [2021] 8 CLJ 708
HIGH COURT MALAYA, KUALA LUMPUR
MARIANA YAHYA J
[JUDICIAL REVIEW NO: WA-25-313-10-2020]
19 FEBRUARY 2021

ADMINISTRATIVE LAW: Judicial review - Leave - Application for - Enquiry following complaints against judge by other judges - Allegations of breach of Judges' Code of Ethics 2009 - Whether enquiry had taken place - Whether there was final decision that conclusively determined rights of applicant - Whether application for leave premature - Whether attempt to circumvent decision-making process - Whether abuse of court's process - Rules of Court 2012, O. 53

CIVIL PROCEDURE: Judicial review - Leave - Application for - Complaints levelled against judge - Allegations of breach of Judges' Code of Ethics 2009 - Request for proceedings to be conducted in open forum with access to public - Whether proceedings to be conducted in camera - Judges' Ethics Committee Act 2010, ss. 8 & 9

CIVIL PROCEDURE: Judicial review - Leave - Application for - Complaints levelled against judge - Allegations of breach of Judges' Code of Ethics 2009 - Whether there was conflict of interests amongst members of Judges' Ethics Committee - Whether appointment of members of Committee in accordance with laws - Whether constitution and composition of Committee in accordance with laws - Federal Constitution - Judges' Ethics Committee Act 2010, ss. 5(2) & 10

CIVIL PROCEDURE: Judicial review - Leave - Application for - Complaints levelled against judge - Allegations of breach of Judges' Code of Ethics 2009 - Judge issued with notice and appendix bearing alleged breaches - Whether appendix amounted to charge - Whether Judges' Ethics Committee acted ultra vires - Whether notice and appendix validly issued

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“We consider it apposite to emphasise that a person's right to defend himself or herself against a criminal charge includes the right to obtain and adduce other evidence in support of his or her defence. It is desirable in the interest of justice for the defence to obtain the fullest possible access to the facts relevant to the issue in the case. In this regard, the prosecution has a duty to make available to the defence witnesses who had been investigated by the police and from whom the statements have been recorded. This is an important or vital corollary or element of an accused's right to a fair trial.”

– per Mohd Zawawi Salleh FCJ in Rosli Yusof v. PP [2021] 7 CLJ 681

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Legal Network Series

[2019] 1 LNS 1054	PP lwn. LIM YIH CHUAN & SATU LAGI Kehadiran seseorang berserta dengan kewujudan pasportnya di suatu premis yang diserbu tidak cukup untuk menyabitkan orang tersebut terhadap pertuduhan pengedaran dadah berbahaya. Tingkah laku seseorang yang gelisah dan takut ketika serbuan bukanlah suatu keterangan untuk membuktikan elemen pengetahuan. UNDANG-UNDANG JENAYAH: Dadah berbahaya - Pengedaran - Pengetahuan - Dadah dijumpai di dalam bilik sebuah premis - Tertuduh berada di ruang tamu ketika serbuan - Pakaian tertuduh tidak dijumpai di dalam bilik - Kesan DNA gagal diambil untuk tujuan pengecaman - Dakwaan bahawa tertuduh kelihatan gelisah dan takut semasa serbuan - Sama ada tertuduh merupakan tetamu yang berada di premis semasa serbuan dilakukan - Sama ada tertuduh mempunyai pengetahuan, milikan dan kawalan terhadap dadah yang berada di dalam bilik premis - Sama ada kehadiran tertuduh dan kewujudan pasport tertuduh di premis ketika serbuan cukup untuk menyabitkan tertuduh - Sama ada tingkah laku tertuduh merupakan suatu keterangan yang dapat membuktikan pengetahuan berkenaan dadah UNDANG-UNDANG JENAYAH: Niat bersama - Pengedaran dadah - Dadah dijumpai di dalam bilik sebuah premis - Tertuduh merupakan tetamu yang berada di premis semasa serbuan dilakukan - Tertuduh ditahan bersama-sama dengan penghuni premis - Sama ada tertuduh-tertuduh mempunyai niat bersama dalam memiliki dan mengedar dadah berbahaya Bagi pihak perayu - JG Kaameni Jaya Raman, Timbalan Pendakwa Raya; Pejabat Penasihat Undang-Undang Bagi pihak OKT2 - Anthony Chew & Sharifah Nur Hanim; T/n Haniff & Partners
[2019] 1 LNS 1083	HONG MAY NGUANG lwn. WAKIL BAGI HARTA PUSAKA HONG MIOU EI & YANG LAIN Sebarang perjanjian persetujuan penyelesaian yang dimeterai tanpa kehadiran dan tandatangan salah seorang pentadbir harta pusaka menunjukkan ketiadaan 'consensus ad idem' pihak-pihak dan perjanjian sedemikian tidak akan mengikat pihak-pihak dan tidak boleh dikuatkuasakan oleh Mahkamah. KONTRAK: Pembentukan - Perjanjian - Perjanjian yang mengikat pihak-pihak - Perjanjian persetujuan penyelesaian - Consensus ad idem - Perjanjian dimeterai pentadbir harta pusaka - Surat persetujuan penyelesaian tidak ditandatangani salah seorang pentadbir - Sama ada satu perjanjian persetujuan penyelesaian telah dimuktamadkan - Sama ada surat persetujuan penyelesaian merupakan satu kontrak yang mengikat pihak-pihak - Sama ada surat persetujuan penyelesaian boleh dikuatkuasakan oleh Mahkamah Bagi pihak perayu - Mohamad Nizam Mohamed Salleh; T/n Maxwell Kenion Gowdy & Jones Bagi pihak responden - Andrew Fernandez; T/n Chooi & Company + T/n Cheang & Ariff
[2019] 1 LNS 1089	KETUA PENGARAH LAUT, JABATAN LAUT MALAYSIA & YANG LAIN lwn. STRAITS BUNKER & TRADING SDN BHD & SATU LAGI Penahanan kapal bersama anak-anak kapal oleh Jabatan Laut dengan menempatkan kapal di kawasan yang terpencil melebihi tempoh 24 jam dan menyekat akses serta kebebasan mereka untuk keluar dari kapal tersebut merupakan suatu penahanan yang tidak sah dan menyalahi undang-undang. Sekiranya Jabatan Laut ingin membuat siasatan lanjut terhadap kapal dan anak-anak kapal bagi sebarang kesalahan di bawah Ordinan Kapal Saudagar 1952, maka anak-anak kapal tersebut seharusnya dikemukakan ke hadapan Majistret dalam masa 24 jam dari masa mereka ditahan. PENAHANAN PENCEGAHAN: Habeas corpus - Penahanan salah - Penahanan kapal dan anak-anak kapal tanpa sebarang perintah oleh Jabatan Laut - Penahanan lebih dari 24 jam - Sekatan akses dan kebebasan keluar dari kapal - Sama ada terdapat penahanan yang tidak sah - Sama ada anak-anak kapal seharusnya dibawa ke hadapan Majistret terlebih dahulu sebelum siasatan dijalankan oleh Jabatan Laut - Sama ada peruntukan s. 72(1) dan (2) Ordinan Kapal Saudagar 1952 boleh mengatasi kehendak dalam Perlembagaan Persekutuan - Sama ada anak-anak kapal berhak mendapat perlindungan yang dijamin di bawah Perlembagaan Persekutuan - Sama ada anak-anak kapal berhak mendapatkan writ habeas corpus Bagi pihak pemohon - Mohd Noor, Timbalan Pendakwa Raya; Pejabat Penasihat Undang-Undang Bagi pihak responden - T/n Ramli Yusuff & Co
[2020] 1 LNS 68	MY PREMIUM LOGISTICS SDN BHD v. PENTADBIRAN TANAH DAERAH KOTA TINGGI Where the State acquires a land used to carry out business, the claimant is entitled to claim for reasonable expenses incurred following the change of the place of business and all costs incidental to such change. LAND LAW: Acquisition of land - Compensation - Claimant carried out orchid farming on land - Claim for expenses incidental to change of place of business - Claim for moving costs, temporary rental costs, estate agent's fee and interruption in business operation - Whether relocation of business to new site would involve significant costs - Whether claimant's claim was reasonable expenses - Land Acquisition Act 1960, First Schedule, para 2(e) For the applicant - Khutubul Zaman; M/s Zaman & Associates For the respondent - Suhana Sabil; Pejabat Penasihat Undang-undang Negeri Johor
[2020] 1 LNS 82	APEX COMMUNICATIONS SDN BHD v. PCOM PACIFIC SDN BHD The issue of irreparable damage resulting from the presentation of a winding-up petition does not arise if the respondent made payment of the petitioner's offer, especially when the respondent had taken the position that it is solvent and capable of paying the debt. CIVIL PROCEDURE: Injunction - Fortuna injunction - Debt due and owing by principal contractor to sub-subcontractor - Principal contractor alleged subcontractor owed bigger sum to them - Principal contractor's contention of debt owed by subcontractor dismissed by Court in previous proceedings - Principal contractor made averment in affidavit in support that it is solvent and had no issue to pay debt - Whether there was bona fide dispute of debt - Whether presentation of winding-up would cause irreparable damage to respondent - Whether irreparable damage could be avoided - Whether presentation of winding-up petition an abuse of process For the applicant - Nadirah lzyan Azaddin, Muhammed Salihin Shukri; M/s Nadirah Azad & Salihin For the respondent - James Ding Tse Wen; M/s CH Tay & Partners

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CLJ 2021 Volume 8 (Part 5)

A liquidator of a listed corporation has no duty to issue the corporation's Financial Statements as required by the ACE Market Listing Requirements the moment it has been wound-up and de-listed by Bursa Malaysia. Under Rule 16.11(2) of the Listing Requirements, Bursa Malaysia is duty-bound to de-list a corporation upon the issuance of a winding-up order against the corporation. The Bursa cannot waive the said mandatory duty. The obligation to issue the financial statement, in other words, will remain in force so long as the corporation remains listed.
Bursa Malaysia Securities Bhd v. Mohd Afrizan Husain [2021] 8 CLJ 675 [CA]

• SUBJECT
• CORAM
• COUNSEL

The equitable principle of beneficial ownership applies to a purchaser who has executed the sale and purchase agreement and paid the full purchase price thereof. As a beneficial owner, he enjoys all the benefits of being the owner even though he is yet to become the registered owner. The vendor then becomes a bare trustee under the principle of constructive trust and has no interest whatsoever in the property, and is thus barred from transferring any title thereto based on the principle of nemo dat quod non habet.
Wan Noor Kamariah Wan Jaafar v. Aritah Realty Sdn Bhd & Ors And Other Appeals [2021] 8 CLJ 693 [CA]

• SUBJECT
• CORAM
• COUNSEL

A disciplinary proceeding against a judge, just like any other disciplinary proceeding, is to be conducted domestically and conducted in accordance with the Judges' Ethics Committee Act 2010. In accordance with s. 8 of the Act and the legislative intent, such proceeding ought to be conducted in camera so as to maintain judicial sanctity and ought not to be opened to the public.
Datuk Dr Hj Hamid Sultan Abu Backer v. Pengerusi Jawatankuasa Etika Hakim-hakim (‘Chairman Of The Judges' Ethics Committee’) & Anor [2021] 8 CLJ 708 [HC]

• SUBJECT
• CORAM
• COUNSEL

At leave stage, in a judicial review application for certiorari to quash the decision of the Director General of Inland Revenue Board ('DGIR') to raise notice of additional assessment, the court is to weigh whether the applicant had an arguable case and the application was not frivolous or vexatious. The application would be allowed if the applicant had shown special circumstances warranting leave for judicial review, although the applicant had not resorted to the domestic remedy of appeal to the Special Commissioners of Income Tax.
Inspirasi Elit Sdn Bhd v. Ketua Pengarah Hasil Dalam Negeri [2021] 8 CLJ 745 [HC]

• SUBJECT
• CORAM
• COUNSEL

No person shall petition for divorce unless he/she has first referred to a conciliatory body and that body has certified that it failed to reconcile the parties. An application for dispensation of the reference to the marriage tribunal could not be made in the petition itself but ought to be made by an originating summons to secure the required dispensation order from the court before the filing of the divorce petition.
Lim Sze Mey v. Looi Guan Heon [2021] 8 CLJ 766 [HC]

• SUBJECT
• CORAM
• COUNSEL

As provided by subsections 3(1)(i) and (2)(ii) of the Insolvency Act 1967, a challenge to a bankruptcy notice on the basis that the amount claimed therein is wrong must be made by the debtor within seven days upon being served with the notice, failing which he commits an act of bankruptcy. If such a challenge comes too late in the day, for example, when it comes six-and-a-half years later, as happened here, then the application to annul the adjudication and receiving orders must necessarily fail.
Re Mohd Saiful Azuar Md Isa; ex p Bank Kerjasama Rakyat Malaysia Bhd [2021] 8 CLJ 785 [HC]

• SUBJECT
• CORAM
• COUNSEL

The party seeking to set aside part of an arbitration award in a challenge under s. 37 of the Arbitration Act 2005 has to demonstrate whether there is a 'new difference' in the findings made by the tribunal. And if the challenge to the award is under s. 42 of the Act, the questions thereunder must not be mixed questions of fact and law. A factual question, further, must not be guised or dressed up as a question of law.
The Board Of Control Of Dewan Bahasa Dan Pustaka v. Dawama Sdn Bhd [2021] 8 CLJ 805 [HC]

• SUBJECT
• CORAM
• COUNSEL

In order to prove a claim in liability against an insured wrongdoer in an accident case, the plaintiff must prove the elements of the tort of negligence, ie the insured wrongdoer owes a duty of care, that he breaches such duty and as a result thereof, the plaintiff has suffered loss and damage. The ingredients required to prove a recovery claim in third-party risk insurance under the Road Transport Act, it be noted, are very different from the ingredients required for a liability claim against an insured wrongdoer.
Veeramohan Veeriah & Anor v. Sethuraja Vaithiyalingam & Anor [2021] 8 CLJ 829 [HC]

• SUBJECT
• CORAM
• COUNSEL

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LNS Article(s)

1. THE MOTION OF CONFIDENCE LIES IN THE HEART OF PARLIAMENTARY DEMOCRACY ^{[Read excerpt]}
   by Kevin De Rozario* [2021] 1 LNS(A) cxix

[2021] 1 LNS(A) cxix



MALAYSIA

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THE MOTION OF CONFIDENCE LIES IN THE HEART OF PARLIAMENTARY DEMOCRACY

by
Kevin De Rozario*

INTRODUCTION

The motion of confidence is the cornerstone of a functioning democracy. (a)Article 43(2)(a) of the Federal Constitution ("FC") stipulates that the Yang di-Pertuan Agong ("YDPA") shall first appoint the Perdana Menteri (Prime Minister) ("PM") to preside over the Cabinet a member of the House of Representatives ("HOR") who in his judgment is likely to command the confidence of the majority of the members of that House.

This would entail that to enable the PM to function and perform his duties, he would need the support of the Members of the House of Representatives. Currently, there are 222 members of the HOR. The PM would require the support of a minimum of 112 members. Article 62(3) of the FC enunciates that each House shall, if not unanimous, take its decision by a simple majority of members voting. If at any point the PM ceases to command the confidence of the members of the HOR, then by virtue of Article 43(4) of the FC, unless he requests the YDPA to dissolve Parliament, the Prime Minister shall tender the resignation of the Cabinet.

. . .

*Senior Partner, Messrs Khairuddin Ngiam & Tan.

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2. TAWARRUQ RISK EXPOSURE IN ISLAMIC BANKS* ^{[Read excerpt]}
   by Mohammad Mahbubi Ali [2021] 1 LNS(A) cxx

[2021] 1 LNS(A) cxx



MALAYSIA

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TAWARRUQ RISK EXPOSURE IN ISLAMIC BANKS*

by
Mohammad Mahbubi Ali

Islamic banking products in Malaysia have evolved and developed exponentially into more sophisticated structures. Most of the products are dominated by a few concepts, notably tawarruq, commonly known as commodity murabahah. Based on Bank Negara Malaysia' Financial Stability Review 2019, tawarruq deposits constituted more than half (63%) of the total Islamic deposit and investment accounts, which signifies higher demand for fixed return instrument. The use of tawarruq has also expanded to Islamic current account and saving account (CASA-i) of Islamic banks in Malaysia. Specifically, tawarruq-based deposit contributed to 93.52% of the total deposit composition in Hong Leong Islamic Bank, 88.35% of Bank Pembangunan Malaysia's deposit portfolio, and 83.22% of CIMB Islamic Bank's deposit composition (Annual Report of the Respective Islamic Banks, 2019).

Apart from deposit products, tawarruq also dominated the shariah-based financing portfolio composition, standing at 46% of the Islamic bank’s total financing portfolio, a drastic increase of more than 100% in just three years (22.4% in 2016). In particular, tawarruq financing represented 86.68% of the total financing portfolio composition of Bank Islam Malaysia Berhad, 69.98% of CIMB Islamic Bank’s financing portfolio, and 63.42% of Hong Leong Islamic Bank’s financing portfolio (Annual Report of the Respective Islamic Banks, 2019).

. . .

* Published with kind permission of the International Institute of Advanced Islamic Studies (IAIS) Malaysia. (www.iais.org.my).

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