Illegality

5 cases · November 2025 to May 2026

Case Volume by Year

1
25
4
26
2025–2026

Key Issues & Sub-Topics

Ex dolo malo non oritur actio — Whether plaintiff seeking to enforce illegal contract — Plaintiff recovering secret profits from fiduciary — No illegality in principal recovering bribes from errant fiduciary — Reading v A-G applied — Merong Mahawangsa distinguished. 1 Pleadings — Whether illegality must be specifically pleaded — Sufficiency of pleadings alleging payment of booking fee — Distinction between material facts and legal argument — Application of Yow Man Kong @ Senthil Kumar v Ghandirajan a/l Arjunan [2023] 5 MLJ 64. 1 Public policy — Ex turpi causa non oritur actio — Agreement disguised as "Investment Fund" — Funds disbursed to foreign third party — Purpose of funds to secure state land and political influence (merasuah) — Whether transaction was an illegal influence-peddling scheme — Whether agreement void ab initio — Contracts Act 1950, s 24(e). Restitution — In pari delicto — Plaintiff an active participant in illegal scheme — Whether Plaintiff barred from seeking equitable restitution or statutory relief — Contracts Act 1950, s 66. Guarantee — Liability of guarantor — Secondary obligation — Claim against principal debtor withdrawn — Guarantee Agreement lacking 'jointly and severally liable' clause — Whether action against guarantor alone maintainable without establishing principal debtor's default. 1 Defence of illegality — Whether plaintiff’s business allegedly unlawful — Whether claim barred — Pleading and proof — Application of proportionality test 1 Moneylending — Sham transaction — Allegation that musharakah agreement a disguise for unlicensed moneylending — Defence of illegality — Whether agreement void ab initio — Burden of proof — Factors considered: fixed periodic payments, informal references to “loan”, absence of licence — Whether sufficient to displace written terms of formal agreement — Court finding illegality not proven — Observation that claim disposed of on prematurity and failure of proof — Unnecessary to make conclusive finding on illegality. 1

Ex dolo malo non oritur actio — Whether plaintiff seeking to enforce illegal contract — Plaintiff recovering secret profits from fiduciary — No illegality in principal recovering bribes from errant fiduciary — Reading v A-G applied — Merong Mahawangsa distinguished. 1 case

Public policy — Ex turpi causa non oritur actio — Agreement disguised as "Investment Fund" — Funds disbursed to foreign third party — Purpose of funds to secure state land and political influence (merasuah) — Whether transaction was an illegal influence-peddling scheme — Whether agreement void ab initio — Contracts Act 1950, s 24(e). Restitution — In pari delicto — Plaintiff an active participant in illegal scheme — Whether Plaintiff barred from seeking equitable restitution or statutory relief — Contracts Act 1950, s 66. Guarantee — Liability of guarantor — Secondary obligation — Claim against principal debtor withdrawn — Guarantee Agreement lacking 'jointly and severally liable' clause — Whether action against guarantor alone maintainable without establishing principal debtor's default. 1 case

Moneylending — Sham transaction — Allegation that musharakah agreement a disguise for unlicensed moneylending — Defence of illegality — Whether agreement void ab initio — Burden of proof — Factors considered: fixed periodic payments, informal references to “loan”, absence of licence — Whether sufficient to displace written terms of formal agreement — Court finding illegality not proven — Observation that claim disposed of on prematurity and failure of proof — Unnecessary to make conclusive finding on illegality. 1 case

Key Statutes

cited in 3 cases
cited in 2 cases
Rules of Court 2012
cited in 2 cases
cited in 1 case
cited in 1 case
Limitation Act
cited in 1 case
cited in 1 case
Subordinate Courts Act 1948
cited in 1 case

Court Distribution

Key People & Firms

Cases