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    The Malaysian Legal

    SystemTopic 1

    1

    Copyright lecture notes prepared by,

    Mr Ravi Nagarathanam

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    2

    Copyright lecture notesprepared by, Mr Ravi

    Nagarathanam

    Activity:

    Brainstorm

    What comesto

    your mindwhen you

    heard thewordLaw?

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    Law

    Oxford Dictionary:

    The system of ruleswhich a particular

    country orcommunity

    recognizes as

    regulating theactions of its

    members and whichit may enforce by

    the impositionpenalties.

    Sir JohnSalmond

    (1862-1924):The body ofprinciples

    recognized andapplied by thestate in the

    administrationof justice.

    Article 160(2),Federal Consituition

    1957:

    Written law;common law in so

    far as it is inoperation in the

    Federation or anypart thereof; anycustom or usage

    having the force oflaw in the

    Federation or in any

    part-theoreof.

    Copyright lecture notesprepared by, Mr RaviNagarathanam

    3

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    The Federal Constituition

    Art 4- The supreme law of the land; any lawspassed after Merdeka Day which isinconsistent with this Constitution shall to theextend of inconsistency, be void.

    The FC enshrines the basic or thefundamental rights of individuals. These

    rights written in the Constitution can only bechanged by a two-thirds majority of the totalnumber of members of the legislature. This isin contrast to normal laws which can beamended by a simple majority.

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    Nagarathanam 4

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    R Rethana v The Government ofMalaysia & Anor (1988)

    Facts:

    Plaintiff sought a declaration that an Act of Parliament

    namely S31 & S42 of Employees Social Security Act

    1969 (SOCSO) were ultra vires the Federal Constitution

    Art d8(1) that provided equal protection of the law for all.

    He alleged that the act precluded employees from suing the

    employer.

    Held:

    Court dismissed plaintiff claim as classification by SOCSO

    was fair & reasonable.

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    Nagarathanam 5

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    Repco Holdings Bhd v PublicProsecutor (1997)

    Facts:

    Applicant was charged by Security Commission for

    infringing Security Industry Act 1983 & Security

    Commission Act 1993.

    Applicant claimed that the 2 Sections infringe Art 145

    (3) of the Federal Constitution.

    Held:

    Court held that both Sections to be unconstitutional, null &

    void.

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    Nagarathanam 6

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    The Role of Parliament

    Enacts law at Federal level

    Within limits prescribed by FederalConstitution

    Law enacted before 31.08.1957 arecalled Ordinance

    Law enacted after 31.08.1957 are

    called Acts

    Parliament can enact laws in matterslisted in list I of the Nine Schedule

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    Nagarathanam 7

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    Copyright lecture notesprepared by, Mr RaviNagarathanam 8

    Classification of Law

    Public law(individual+state)

    Constitutionallaw

    Criminallaw

    International law(state+state)

    Publicinternational

    law

    PrivateInternational

    law

    Private law(individual+individual)

    e.g. Law ofcontract

    e.g. LawOf trust

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    ContCopyright lecture notesprepared by, Mr RaviNagarathanam 9

    Public Law

    The law which governs the relationship between

    individuals and the state.

    Public law may be further subdivided into two categoriesi.e. constitutional law and criminal law.

    Constitutional law lays down the rights of individuals inthe state. It deals with questions such as supremacy ofParliament and rights of citizens. It also covers areasdealing with state and federal powers.

    Criminal law codifies the various offences committed byindividuals against the state. A crime is a wrong againstthe state for which punishment is inflicted by the state

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    Cont

    International Law

    The law which governs the relationship between stateand state.

    It may be subdivided into two categories:

    1. Public international law2. Private international law.

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    Cont

    Private Law

    Private law concerned with matters that affectthe rights and duties of individuals amongstthemselves.

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    Sources of MalaysianLaw

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    Written Law

    FederalConstitution

    StateConstitution

    Legislation

    Subsidiarylegislation

    UnwrittenLaw

    English law

    Judicialdecision

    Customarylaw

    Islamic Law

    SyariahCourts

    Only forMuslims

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    Written Law

    FederalConstitution

    Supreme lawof Malaysia

    Provides thepowers of the

    Federal &

    StateGovernments

    Providesfundamental

    rights of

    individual

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    Written Law

    State Constitution

    Regulates State GovernmentsContains provisions derived from 8thschedule of

    the Federal Constitution

    Legislation

    Enacted by Parliament and the state assemblies

    Act: laws made after 1957

    Ordinances:

    laws made 1946-1957 laws in Sarawak

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    Written Law

    Laws made under anyActs, Enactments orOrdinances

    Very important becausespecify the laws in moredetail and for everydaymatters

    Subsidiary legislationmade in contravention ofeither a parent Act or theConstitution is void.

    Example:

    Parent Act (main law) :Hire-Purchase Act 1957

    Subsidiary Legislation :Hire-Purchase(Repossession) Regulation

    Subsidiarylegislation

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    Unwritten Law

    English law:

    - Applicable in the absence of local laws

    - Suitable to local circumstances

    English Commercial Law?

    Section 5(2) of the Civil Law Act 1956, English commercial law

    applies to Penang, Malacca, Sabah & Sarawak

    If no local laws applicable

    Today, many local laws dealing with commercial matters

    e.g. Contracts Act 1950, Partnership Act 1961, Companies Act

    1965

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    Unwritten Law

    Judicial decisions:

    - Judgesdecision

    - Doctrine of binding precedent : Not decide

    cases arbitrarily must follow precedents

    (previous decisions of similar situations).

    Each court is bound by the decisions of courts of

    the same level or higher than it in the same

    hierarchy of courts, whether or not it believes a

    decision is correct

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    Unwritten Law

    Customary law: Customs practiced by local people

    Generally, customs relating to family law

    are given legal force by courts in

    Malaysia-marriage, divorce, inheritance

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    Copyright lecture notesprepared by, Mr RaviNagarathanam 19

    CUSTOMS

    MALAY CHINESE INDIAN

    ADAT

    PERPATIH

    CHINESE

    CUSTOMARY

    LAW

    INDIAN

    CUSTOMARY

    LAW

    ADAT

    TEMENGGUNG

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    Islamic Law

    Applicable to Muslims only, does not applyto non Muslims

    family matters (marriage and divorce)

    estate matters (inheritance, wasiat)

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    The system of courts and administration of justice

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    FEDERAL COURT

    COURT OF APPEAL

    High Court in MalayaHigh Court in

    Sabah & Swak

    Sessions Court

    Magistrates Court

    Penghulus Court

    Syariah Court

    Session Court

    Native Court Syariah Court

    Magistrates Court

    Juvenile Court Juvenile Court

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    COURT SYSTEM

    Courts are divided into two categories:

    (i) Superior Courts:

    - Federal Court

    - Court of Appeal

    - High Court

    (ii) Subordinate Courts:

    - Sessions Court

    - MagistratesCourt

    - MagistratesCourt for Children

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    Federal Court (FCt)

    FCt replaced the Supreme Court in mid-

    1994 as the highest court.

    FCt is the highest court in Malaysia.

    Instituted by Article 121 of the Federal

    Constitution.

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    2. Court of Appeal (COA)

    The COA was established under Article 121 of the Federal

    Constitution.

    On 24.06.1994, the COA was created to act as an intermediate

    appeal chamber before proceeding straight to the FC.

    The composition of its judicial personnel is prescribed in Article

    122A of the Constitution.

    Proceedings is heard and disposed of three judges or such

    greater uneven number of judges as the President may in any

    particular case determine i.e. three judges at any one time OR

    more (but must be of uneven numbers i.e. 5, 7, 9,11) Decisions

    are made by majority i.e. 2:1 (2 to 1), 3:2, 4:3, 5:4.Copyright lecture notesprepared by, Mr RaviNagarathanam 24

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    Court of Appeal

    Section 50 and 67 of the Courts of Judicature Act 1964

    The court can hear both Civil and Criminal appeal cases.

    Civil Appeal Cases

    Has jurisdiction to hear and determine civil appeals for cases

    where the amount or value of the subject matter of the claim ismore than RM 250,000.

    If the amount is less than RM250,000 the parties must get the

    permission from the Court of Appeal.

    Criminal Appeal Cases

    Has jurisdiction to hear and determine any appeal against the

    decision of the High Court.Copyright lecture notesprepared by, Mr RaviNagarathanam 25

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    3. High Court (HC)

    Established under Article 121(1) of the FederalConstitution.

    There are 2 High Courts of co-ordinate jurisdiction inMalaysia:(i) High Court for West Malaysia(ii) High Court in Sabah and Sarawak

    Each of the two High Courts is headed by a Chief Judge.

    Sections 22, 23 and 24 of Courts of Judicature Act 1964 lay down thecriminal and civil jurisdiction of the High Court.

    Deals with offences punishable with death.

    The general jurisdictional rule in relation to criminal matters isreflected in Section 22(1)(a) of the Courts of Judicature Act 1964.

    Has unlimited jurisdiction to try all civil proceedings within the localjurisdiction of the court.

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    4. Sessions Court (SC)

    A SC is under the charge of a SC judge.

    Under Section 54 of the Subordinate Courts Act, the SC

    assumes a limited supervisory role over the Magistratesand Penghuluscourts.

    The purpose for such action is to ensure the correctness,

    legality or propriety of the decision recorded or arrived at,

    and the regularity of the proceedings.

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    Session Court

    Civil cases

    All suits where the amount in dispute or the subject matter

    does not exceed RM250,000.

    May entertain cases above RM250,000 if it concerns motor

    vehicles accident, landlord and tenant.

    May not entertain even if its below RM250,000 if it concerns;

    divorce, bankruptcy, enforcement of trust, specific

    performance, injunction. (determined by the High Court)

    Criminal cases

    All offences other than offences punishable with death. May

    impose any sentence allowed except sentence of death.Copyright lecture notesprepared by, Mr RaviNagarathanam 28

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    MagistratesCourt (MC)

    Familiar to most urban people as it isestablished in all major towns and sometimes

    goes on circuit to regional areas.

    This court has the jurisdiction to hear civil cases

    and criminal cases

    This court has the jurisdiction to hear civil cases and criminal cases. There

    are two (2) types of classes of magistrate i.e. First Class and Second Class

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    First Class Court

    Criminal To try all offences punishable with up to 10 years

    imprisonment or with fine only and offences related to punishment for

    robbery and house breaking by night.

    Civil - To try all litigations where the matter in dispute or subject

    matter does not exceed RM25,000.

    Second Class Court:

    Civil - Performs minor function i.e. granting bail, mentioning cases.

    Criminal Only to deal with cases where the maximum punishment

    imposed is no more than 12 months imprisonment or which is

    punishable with a fine only.

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    MagistratesCourt for Children (MCC)

    Established under the Child Act 2001 (Act 611).

    The court has the jurisdiction to hear cases regarding offenders between the

    age of 10 18 years.

    It can try all offences except those punishable by death and it is presided by

    a First Class Magistrate and 2 advisors.

    The philosophy of creating a special court is that children need care and

    attention and offenders should be treated differently from adult ones and

    with compassion.

    When a juvenile is found guilty, they are sent to correctiveschool i.e. Henry

    Gurney School, Melaka. Copyright lecture notesprepared by, Mr RaviNagarathanam 31

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    7. PenghulusCourt

    At the lowest level of the court hierarchy in WestMalaysia

    Presided by a Penghulu or Headman appointed by

    the state government for a mukim which is an

    administrative district

    To try civil disputes where the subject-matter does

    not exceed RM50 in value and in criminal cases, to

    impose a fine not exceeding RM25.

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    Tutorial 1 (Case Study)

    Form a group of three (3) peoples.

    Browse the internet and look for any cases related to

    business law (e.g. contract/ sale of goods/

    partnership/ agency) that tried in court either in side

    or out side of Malaysia.

    Read the factsand heldof the case carefully.

    Analyze the case heldand give your opinion.

    Present your case study on the next class.

    You may present either in English or Malay.

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