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Issue #44/2020 22 October 2020

New This Week Case(s) of the Week LAI KING LUNG & ANOR v. MERAIS SDN BHD [2020] 9 CLJ 449 RAJENDIRAN MANICKAM & ANOR v. PALMAMIDE SDN BHD & ANOR [2020] 9 CLJ 510 Appeal Updates Appeal Updates Latest Cases Legal Network Series CLJ 2020 Volume 9 (Part 4) Articles LNS Article(s) Legislation Highlights Principal Acts Amending Acts PU(A) PU(B) Legislation Alert

LAI KING LUNG & ANOR v. MERAIS SDN BHD [2020] 9 CLJ 449
FEDERAL COURT, PUTRAJAYA
MOHD ZAWAWI SALLEH FCJ; VERNON ONG LAM KIAT FCJ; ABDUL RAHMAN SEBLI FCJ; ZALEHA YUSOF FCJ; ZABARIAH MOHD YUSOF FCJ
[CIVIL APPEAL NO: 02(i)-4-01-2019(B)]
20 JULY 2020

COMPANY LAW: Winding up - Liquidator - Sanction of - Notice of appeal - Whether liquidator's sanction deemed to have been given on date of filing of notice of appeal - Whether liquidator had statutory power to grant retrospective sanction - Whether plaintiff clothed with locus standi to proceed with appeal without leave nunc pro tunc obtained from court - Whether notice of appeal bad in law and of no legal effect

COMPANY LAW: Liquidation - Company wound-up - Appointment of liquidator - Notice of appeal by wound-up company - Whether wound-up company must obtain consent or sanction of liquidator before filing of notice of appeal - Whether liquidator authorised to grant sanction retrospectively - Whether plaintiff clothed with locus standi to proceed with appeal without leave nunc pro tunc obtained from court - Whether notice of appeal bad in law and of no legal effect

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RAJENDIRAN MANICKAM & ANOR v. PALMAMIDE SDN BHD & ANOR [2020] 9 CLJ 510
COURT OF APPEAL, PUTRAJAYA
HASNAH MOHAMMED HASHIM JCA; KAMALUDIN MD SAID JCA; LEE SWEE SENG JCA
[CIVIL APPEAL NO: B-04(IM)(C)-82-02-2019]
07 JULY 2020

LABOUR LAW: Employment - Compensation - Claim for - Employees sustained injuries as result of explosion and fire resulting from welding works done in employers' factory - Employees claimed damages for negligence, breach of statutory duties and occupiers' liability - Whether employee injured in course of employment in workplace accident could claim under Employees' Social Security Act 1969 and thereafter bring further claim under common law - Whether issues that arose should be fully argued at trial - Whether employees' claims a non-starter - Whether employees' claims weak justifying suit to be struck out in limine

CIVIL PROCEDURE: Striking out - Appeal against - Claim for compensation - Employees sustained injuries as result of explosion and fire resulting from welding works done in employers' factory - Employees claimed damages for negligence, breach of statutory duties and occupiers' liability - Whether employee injured in course of employment in workplace accident could claim under Employees' Social Security Act 1969 and thereafter bring further claim under common law - Whether issues that arose should be fully argued at trial - Whether employees' claims a non-starter - Whether employees' claims weak justifying suit to be struck out in limine 

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1. KAB Corporation Sdn Bhd v. Impiana Sdn Bhd [2019] 1 LNS 975 (CA) overruling in part the High Court case of Master Platform Sdn Bhd v. KAB Corporation Sdn Bhd & Anor [Rayuan Sivil No. WA-12ANCVC-60-04/2016].

2. Joseph Subramaniam v. PP [2019] 1 LNS 1420 (CA) affirming the High Court case of PP v. Joseph Subramaniam [2018] 1 LNS 1039.

Legal Network Series

[2019] 1 LNS 543	MOHAMMAD AWARI AHMAD lwn. PP 1. Perbuatan menghiris bahagian leher simati sebanyak dua kali jelas menunjukkan niat tertuduh untuk membunuh si mati atau mengetahui bahawa perbuatannya itu akan mendatangkan kecederaan yang pada lazimnya boleh membawa kepada kematian si mati menurut s. 300 (a) dan (c) Kanun Keseksaan. 2. Nota pernyataan nazak yang dibuat oleh si mati adalah relevan dan boleh diterima sebagai keterangan untuk menyokong pertuduhan bunuh walaupun pernyataan nazak tidak menyebut perkataan 'membunuh' memandangkan pernyataan tersebut adalah berkaitan dengan identiti pelaku serta keadaan yang berlaku sehingga membawa kepada kematian si mati. UNDANG-UNDANG JENAYAH: Bunuh - Niat - Leher si mati dikelar dua kali oleh tertuduh menggunakan golok - Tertuduh mendakwa niatnya adalah untuk merompak dan merogol si mati sahaja dan bukan untuk membunuh - Sama ada kecederaan yang dialami oleh si mati yang dilakukan oleh tertuduh adalah secara sengaja dan penuh kesedaran - Sama ada tertuduh mempunyai niat untuk membunuh si mati KETERANGAN: Pernyataan nazak - Kebolehterimaan - Si mati sempat menulis nota pernyataan nazak - Pertuduhan bunuh - Pernyataan nazak tidak menyebut perkataan 'membunuh' - Sama ada munasabah untuk si mati menulis perkataan 'membunuh' apabila si mati masih hidup ketika pernyataan nazak di buat - Sama ada pernyataan nazak relevan dan boleh diterima sebagai keterangan di bawah s. 32(1)(a) dan (i) Akta Keterangan 1950 Bagi pihak perayu - Wan Idi Amin Ibrahim; T/n Idi Amin Bagi pihak responden - Faizah Mohd Salleh, Timbalan Pendakwa Raya; Bahagian Rayuan dan Perbicaraan; Jabatan Peguam Negara
[2019] 1 LNS 547	NIK RUSDI NIK SALLEH lwn. SHELL MALAYSIA TRADING SDN BHD Keuntungan nominal adalah memadai dan munasabah apabila tiada keterangan yang menunjukkan jumlah kerugian keuntungan sebenar yang dialami oleh pemegang lesen ekoran daripada penamatan salah kontrak lesen oleh pemberi lesen. Sesuatu bayaran ganti rugi seharusnya tidak melebihi dari tempoh kontrak yang dimasuki oleh pihak-pihak. GANTI RUGI: Taksiran - Kerugian keuntungan - Penamatan salah kontrak lesen runcit minyak petrol - Penamatan sebelum tempoh luput kontrak tamat - Tuntutan oleh pemegang lesen untuk kerugian keuntungan jualan minyak - Sama ada penyata akaun yang tidak diaudit boleh diterima bagi tujuan taksiran - Sama ada keuntungan sebenar telah dibuktikan - Sama ada pemegang lesen telah mengalami kerugian akibat daripada penamatan salah - Sama ada jumlah keuntungan nominal sahaja wajar diberikan apabila tiada keterangan berkenaan kerugian sebenar - Sama ada bayaran ganti rugi boleh melebihi tempoh kontrak yang dimasuki pihak-pihak - Sama ada ganti rugi boleh melebihi tempoh kontrak yang dimasuki Bagi pihak perayu/plaintif - T/n Shaharuddin Hidayu & Marwaliz Bagi pihak responden/defendan - T/n Azim, Tunku Farik & Wong
[2019] 1 LNS 548	AZRA AHMAD ROSLI lwn. PP Tertuduh tidak mendapat perbicaraan yang adil apabila tertuduh tidak diwakili oleh peguam ketika mitigasi tertuduh dikemukakan di Mahkamah. Dalam menentukan suatu hukuman, kepentingan tertuduh tidak wajar diketepikan secara langsung. Justeru Mahkamah perlu menjalankan satu kaedah pengimbangan untuk memastikan keadilan dilaksanakan kepada mangsa dan juga tertuduh. PROSEDUR JENAYAH: Hukuman - Mencuri - Keadilan kepada tertuduh - Pengakuan bersalah - Mitigasi - Tertuduh tidak diwakili ketika dituduh di Mahkamah - Sama ada tertuduh telah menjalani perbicaraan yang adil tanpa peguam - Sama ada Mahkamah berupaya menghayati hujahan mitigasi daripada peguambela berbanding dengan hujahan mitigasi daripada tertuduh sendiri - Sama ada pengakuan bersalah, kesalahan pertama tertuduh, penyesalan dan keinsafan, usia muda tertuduh dan kemiskinan merupakan faktor mitigasi yang perlu dipertimbangkan - Sama ada kepentingan tertuduh wajar diketepikan langsung Bagi pihak pendakwaraya/responden - TPR Shaharaliza Ab Razak; Pejabat Penasihat Undang-Undang Negeri Bagi pihak peguamcara/perayu - Sukri Mohamed; T/n Wan Haron Sukri & Nordin
[2019] 1 LNS 692	SHAHANOM UTHMAN v. PP 1. The presumption under s. 50 of Malaysian Anti-corruption Commission Act 2009 may be invoked against an accused who corruptly solicited and accepted gratification in cash and in kind from buyers as a reward for giving discounts for unprocessed copper supplied by his principal which was beyond his authority and contrary to the principal's policy. 2. Sentences imposing a fine must be reflective of the financial means of the accused. The imposition of an additional 26 years imprisonment as a default sentence despite the sentence of 6 years imprisonment is manifestly excessive and would give an impression that the accused is being persecuted. CRIMINAL LAW: Corruption - Corruptly accepting gratification - Corruptly soliciting gratification - Gratification in cash and in kind - Cash and BMW car received by accused as a reward for discount of unprocessed copper supplied by principal of accused - Whether there was sufficient evidence that the money and car were received by accused as a reward for discount of unprocessed copper - Whether accused received gratification corruptly as inducement to do an act in connection with affairs of his principal - Whether presence of accused required during transfer of car to accused - Whether presumption under s. 50 of Malaysian Anti-Corruption Commission Act 2009 had been properly and correctly invoked CRIMINAL PROCEDURE: Appeal - Appeal against sentence - Corruption - Fine - Default sentence - Accused convicted on 8 charges of corruption and sentenced to imprisonment of 6 years concurrently, and fines totaling RM 5.4 million in default, 26 years imprisonment - Whether sentence meted out was manifestly excessive - Whether default sentence was excessive - Whether would give the impression that accused is being persecuted - Whether trial judge should have anticipated possibility that accused could not pay fines - Whether imposition of fine must be reflective of the financial means of accused For the appellant - Muhammad Rafique Rashid Ali & Akif Rusli; M/s Law Practice of Rafique For the deputy public prosecution - Mohammed Heikal Ismail & Nor Ameelyna Zaini, Timbalan Pendakwa Raya; Jabatan Peguam Negara
[2019] 1 LNS 739	MERCK KGAA v. XTALIC CORPORATION For purposes of opposing registration of trade marks, the probable effect of normal and fair use would be assessed based on the likelihood of deception or confusion if the mark sought for registration is used in relation to the same or similar goods in that class of registration generally. Mere registration of trade marks for goods in the same class would not create any real tangible danger of deception or confusion to the consumers if they co-exist together. INTELLECTUAL PROPERTY: Trade marks - Registration - Opposition to registration - Defendant intended to register mark 'XTALIC' - Plaintiff being registered proprietor of trade mark 'XIRALLIC' - Goods registered under same class - Whether 'first use' principle is only relevant if marks in issue are confusingly similar - Whether determination of deception or confusion for purposes of ss. 14 & 19 of Trade Marks Act 1976 should be that of probable effects of normal and fair use - Whether defendant's mark was highly and conceptually similar to plaintiff's mark - Whether it was probable that consumer would consider defendant's mark as an extension or variant of plaintiff's mark - Whether there would be real tangible danger of deception or confusion if marks are registered and co-exist together For the plaintiff - Najihah Rozlan & Timothy Joseph Dass; Miranda & Samuel For the defendant - Teo Bong Kwang & Boo Min Lee; Wong Jin Nee & Teo

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CLJ 2020 Volume 9 (Part 4)

An official receiver or a liquidator of a wound-up company does not have the power nor the authority to grant any sanction retrospectively to the company under receivership or liquidation to proceed with any litigation; a wound up company is thus not clothed with the necessary locus standi to proceed with an appeal or a proceeding without nunc pro tunc leave having first been obtained from the court.
Lai King Lung & Anor v. Merais Sdn Bhd [2020] 9 CLJ 449 [FC]

• SUBJECT
• CORAM
• COUNSEL

An arbitrator who is a professional engineer and well-versed and knowledgeable in the construction industry, in relying on his own knowledge and expertise of the construction industry in arriving at a decision on the quantum of 'loss of profit' of a construction company pursuant to s. 21(3) of the Arbitration Act 2005 which allows an arbitrator to draw on his own knowledge and expertise, cannot not be said to be in breach of the rules of natural justice within the meaning of s. 37(1)(b)(ii) read together with s. 37(2)(b) of the Act.
Pancaran Prima Sdn Bhd v. Iswarabena Sdn Bhd & Another Appeal [2020] 9 CLJ 466 [FC]

• SUBJECT
• CORAM
• COUNSEL

An employee who is injured in the course of his employment in a workplace may, after filing a claim under the Employees Social Security Act 1969, file another claim under common law against the employer under the tort of negligence, breach of statutory duties or occupier's liability as the case may be in respect of the injury suffered. An employee's claim for damages for such tortious acts, even when inextricably linked to the issue of whether the employee could as well pursue a claim for aggravated and exemplary damages for gross negligence against the employer, ought not to be struck out in limine or summarily under O. 18 r. 19 Rules of Court 2012. Aggravated damages may be awarded in a case where there is aggravating conduct or circumstances in the negligent act committed by an employer, such as where it resulted in the employer profiting at the expense of the safety of its employee, and a claim for same, therefore, cannot be said to be so obviously unsustainable as to attract the invocation of the summary striking out provision.
Rajendiran Manickam & Anor v. Palmamide Sdn Bhd & Anor [2020] 9 CLJ 510 [CA]

• SUBJECT
• CORAM
• COUNSEL

(1) As a public decision-making body, the Director General of Customs and Excise has a duty to give reasons for its decision in rejecting an applicant's application for special refund of sales tax for goods held on hand pursuant to s. 190 of the Goods and Services Tax Act 2014 ('GST Act'). The giving of reasons is one of the fundamentals of good administration, as it inculcates transparency and accountability in public decision-making bodies. The absence of specific provisions in the GST Act which requires the Director General to give reasons for its decision could not be interpreted to mean that no reasons need be given.
(2) When evidence adduced demonstrates that the applicant had fulfilled the requirements of ss. 190 and 191 of the GST Act, and there was no challenge to the accuracy, the application for special refund of sales tax for goods ought to be allowed.
Uniqlo (Malaysia) Sdn Bhd v. Ketua Pengarah Kastam Dan Eksais [2020] 9 CLJ 521 [CA]

• SUBJECT
• CORAM
• COUNSEL

An administrator of an estate owes fiduciary duties to the estate's beneficiaries to (i) safeguard their rights and interests; (ii) act with proper prudence when dealing with the said estate property; (iii) obtain the best possible price for the assets of the estate that are being sold; and (iv) distribute the proceeds of the estate among the beneficiaries. Selling off an estate for a price not favourable to the beneficiaries amounts to a breach of fiduciary and statutory duties and could possibly render the sale of the said estate voidable.
Visaladchumy Narayanan & Ors v. Representative Of The Estate Of Haridas Narayanan, (Deceased) & Ors [2020] 9 CLJ 541 [CA]

• SUBJECT
• CORAM
• COUNSEL

(i) The court needs to be cautious where leave is sought for service out of jurisdiction involving a sovereign State as such service is an interference with the exclusive jurisdiction of the sovereign power of the State. It is trite that a party seeking to invoke the court's jurisdiction for the purpose of serving its cause papers out of jurisdiction ought to make a full and fair disclosure of the relevant facts to the court, a fortiori when such application is made on an ex-parte basis. In the present case, since there were no averments made by the plaintiff that service of the cause papers that was effected on the defendants in Saudi Arabia was in accordance with and not contrary to the laws of Saudi Arabia, the service of such cause papers cannot be said to have been duly effected; the service effected was flawed and ought to be set aside.
(ii) A party to an agreement that contains an arbitration clause is obliged to refer a dispute to arbitration, especially when it is made clear by a true construction of the arbitration clause that in the event the parties failed to settle a controversy or claim, the parties had consented to resolve the said dispute by way of arbitration. The approach of the court with regards to an arbitration agreement is to hold the parties to their voluntary consensus to arbitrate their dispute especially so when the agreement to arbitrate is clear beyond dispute.
Koperasi Permodalan Felda Malaysia Bhd v. Al Rawda Investment For Real Estate Development & Projects Management Co Ltd & Anor [2020] 9 CLJ 571 [HC]

• SUBJECT
• CORAM
• COUNSEL

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LNS Article(s)

1. MIGRANTS AND THE LAW ^{[Read excerpt]}
   by Dato' Seri Mohd Hishamudin Yunus* [2020] 1 LNS(A) cxiii

[2020] 1 LNS(A) cxiii



MALAYSIA

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MIGRANTS AND THE LAW

by
Dato' Seri Mohd Hishamudin Yunus*

Introduction

In 2017, the number of international migrants was about 257.7 million.^[1] Nearly two thirds of all migrants live in Asia (79.6 million) or Europe (77.9 million). The whole of the American region hosted the third largest number of international migrants (67.2 million), followed by Africa (24.7 million). The largest number of all international migrants live in the United States of America (49.8 million), followed by Saudi Arabia and Germany with 12.2 million of migrants each, the Russian Federation (11.7 million), and the United Kingdom (8.8 million).

Nearly all countries are concerned by migration, whether as sending, transit, or receiving countries, or as a combination of these. Malaysia, on her part, had announced in 2015 that she would accept 3000 migrants from Syria over the next three years.^[2] But in the same year what made headlines was the shocking discovery of human smuggling camps and the bodies of illegal immigrants dumped in mass graves at Songkhla and Padang Besar near the Thai-Malaysia border.^[3]

. . .

*Consultant, Lee Hishammuddin Allen & Gledhill; Chairman, Independent Committee on Management of Foreign Workers; Barrister-at-law, Lincolns Inn; Diploma in International Commercial Arbitration, CIArb; Fellow, Asian International Arbitration Centre; former Judge of the Court of Appeal, Malaysia. (As at 25 March 2019).

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2. IS COVID-19 OR THE MOVEMENT CONTROL ORDER ("MCO") A FORCE MAJEURE EVENT IN CONSTRUCTION CONTRACTS? ^{[Read excerpt]}
   by Balan Nair Thamodaran* Naveen Sri Kantha** [2020] 1 LNS(A) cxiv

[2020] 1 LNS(A) cxiv



MALAYSIA

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IS COVID-19 OR THE MOVEMENT CONTROL ORDER ("MCO") A FORCE MAJEURE EVENT IN CONSTRUCTION CONTRACTS?

by
Balan Nair Thamodaran*
Naveen Sri Kantha**

Introduction

The rampant spreading, rising cases and death tolls reported in many countries has forced the World Health Organization ('WHO') to declare the Coronavirus outbreak or COVID-19 as a public health emergency of international concern on 30 January 2020 and as a global pandemic on 11 March 2020. There was a genuine fear that the spread of COVID-19 would severely impact businesses, livelihood, and the global economic market.

In an effort to halt the escalation of the COVID-19 outbreak, the Malaysian Government had, on 16.03.2020, announced the implementation of the Movement Control Order ("MCO") throughout Malaysia which took effect from 18.03.2020 to 31.03.2020 ("Restriction Period"). This Restriction Period was later extended to 28.4.2020⁺ (“Extended Restriction Period”).

. . .

+ The MCO was extended a total of three times and Malaysia is currently under a Recovery Movement Control Order (RMCO) until 31.12.2020.

*Partner, M/s Thomas Phillip, Advocates and Solicitors.

**Associate, M/s Thomas Phillip, Advocates and Solicitors.

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3. ANALYSIS ON WOMEN'S ACCESS TO FINANCE DURING AND AFTER MARRIAGE ^{[Read excerpt]}
   by Nur Syakirah Binti Mohd Adnan* [2020] 1 LNS(A) cxv

[2020] 1 LNS(A) cxv



MALAYSIA

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ANALYSIS ON WOMEN'S ACCESS TO FINANCE DURING AND AFTER MARRIAGE

by
Nur Syakirah Binti Mohd Adnan*

INTRODUCTION

Malaysia operates a pluralistic legal system, based on English common law, Islamic law, and native customary law.^[1] Civil courts have jurisdiction over the majority of laws, including contract, tort, property, crime, and constitutional or administrative matters. State Syariah courts have jurisdiction over Islamic personal and family law.^[2] The Syariah courts, which are established and regulated by the states, have jurisdiction over Islamic family law matters.^[3]

The exclusive obligation of the husband to support his family leaves many men with a sense of control over the working lives of their wives. Given that women are not under any Islamic obligation to provide nafaqah for their children or husbands, men find it acceptable to restrict a woman’s right to work.

. . .

* G1915632 IIUM, LLM in International Law, adnansyakira@yahoo.com

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4. REFLECTIONS ON THE RECENT HIGH COURT DECISION IN LOVE: THE CONSTITUTION, INDIGENOUS RIGHTS, AND IMMIGRATION LAW* ^{[Read excerpt]}
   by Kate Slack**
   Arron Hartnett   [2020] 1 LNS(A) cxii

[2020] 1 LNS(A) cxii



AUSTRALIA

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REFLECTIONS ON THE RECENT HIGH COURT DECISION IN LOVE:
THE CONSTITUTION, INDIGENOUS RIGHTS, AND IMMIGRATION LAW*

by
Kate Slack**
Arron Hartnett  

On 11 February 2020 the High Court handed down its decision in Love v. Commonwealth of Australia [2020] HCA 3 ('Love').^[1] The decision, by a majority of four judges to three, determined that Aboriginal Australians, according to the 'tripartite test' for Aboriginality described by Brennan J in Mabo v. Queensland (No. 2) ('Mabo'),^[2] were not within the reach of the Commonwealth Parliament's so called 'aliens power' in section 51(xix) of the Constitution.

This article briefly examines the factual background of both plaintiffs in Love, the constitutional and legislative issues raised by the case, and the High Court’s decision and reasoning. It also adds some observations about potential future implications that the judgment might have (particularly for Aboriginal and Torres Strait Islander people in Australia).

. . .

* Published with kind permission of the Law Society of the Australian Capital Territory. See Ethos Winter 2020, Issue 256.

** COUNSEL, QLD BAR. The authors of this article appeared, led by Stephen Keim SC, for the plaintiffs in Love.

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