Yew Huoi, How & Associates | Leading Malaysia Law Firm

EQUITY – RELIEF PT. 2: RECOVERING POSSESSION OF MOVABLE PROPERTY

During the last legal update on relief and recovering possession under equity, we have explained on recovering possession of immovable property which falls under sections 7 and 8 of the Specific Relief Act 1950 (“SRA 1950”). On the other hand, sections 9 and 10 deal with the same remedy in respect of movable property. This remedy is mentioned in section 4(a) of the SRA 1950 that specific relief is given by taking possession of certain property and delivering it to the claimant, as one of the proprietary remedies recognized by equity.

Recovering Possession of Movable Property

Under section 9 of the SRA 1950, a person entitled to the possession of specific movable property may recover the same in the manner prescribed by law relating to civil procedure. The relief in this section is based on the tort of detinue which is the detention of property with the intention of keeping the property in defiance of the rights of the person entitled to possession of it. An action lies for the specific recovery of the property wrongfully detained by the person entitled to its possession, and also for damages occasioned by the wrongful detainer.

The Malaysian courts have held that in an action for recovery of property under section 9, there is a need for the person entitled to possession to first issue a letter of demand to the person who has detained the property before a writ can be issued under section 9. The rationale for this requirement appears in the decision in the case of Abdul Muthalib bin Hassan v Maimoon bte Hj Abd Wahid.

Other than the prerequisite of making a demand, it was also noted that another requirement in order to recover such property under detinue is the refusal of the person detaining the property to return the property to the person making the demand.

Conclusion

There have not been many cases where the relevant sections in the SRA 1950 have been cited in court when the action is to recover immovable property or immovable property. However, these sections are important as they form the substantive law on the relief, providing the rights to relief and the conditions to fulfil before invoking such relief.

Sorotan Terkini

REGULATIONS – GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT 1947 ) – ARTICLE I

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When a motorcyclist claimed he was knocked down in an accident, the Sessions Court ruled in his favor, holding the other rider fully liable. But the insurance company wasn’t convinced. They appealed, arguing that there was no proof of a collision and even raised suspicions of fraud. The High Court took a closer look – and in a dramatic turn, overturned the decision, dismissed the claim, and awarded RM60,000 in costs to the insurer. This case is a stark reminder that in court, assumptions don’t win cases – evidence does.

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CHARTERPARTY – LIEN ON SUB-FREIGHTS: CLARIFYING OWNERS’ RIGHTS AGAINST SUB-CHARTERERS

In Marchand Navigation Co v Olam Global Agri Pte Ltd and Anor [2025] 1 Lloyd’s Rep 92, the Singapore High Court upheld the owners’ right to enforce a lien on sub-freights under Clause 18 of the NYPE 1946 charterparty, ruling that the phrase ‘any amounts due under this charter’ was broad enough to cover unpaid bunker costs. Despite an arbitration clause between the owners and charterers, the sub-charterer was obligated to honor the lien, as it was not a party to the arbitration agreement. This decision reinforces that a properly exercised lien on sub-freights can be an effective tool for owners to recover unpaid sums, even in the presence of disputes between charterers and sub-charterers.

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SHIP SALE – LOSING THE DEAL, LOSING THE DAMAGES? THE LILA LISBON CASE AND THE LIMITS OF MARKET LOSS RECOVERY

In “The Lila Lisbon” [2025] 1 Lloyd’s Rep 101, the court ruled that a buyer cancelling under Clause 14 of the Norwegian Salesform Memorandum of Agreement is not automatically entitled to loss of bargain damages unless the seller is in repudiatory breach. The case clarifies that failing to deliver by the cancellation date does not constitute non-delivery under the English Sale of Goods Act 1979, as the clause grants the buyer a discretionary right rather than imposing a firm obligation on the seller. This decision highlights the importance of precise contract drafting, particularly in ship sale agreements, where buyers must ensure that compensation for market loss is explicitly provided for.

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CRIMINAL – KIDNAPPING – NO ESCAPE FROM JUSTICE: COURT UPHOLDS LIFE SENTENCE IN HIGH-PROFILE KIDNAPPING CASE

A 10-year-old child was abducted outside a tuition center, held captive, and released only after a RM1.75 million ransom was paid. The appellants were arrested following investigations, with their statements leading to the recovery of a portion of the ransom money. Despite denying involvement, they were convicted under the Kidnapping Act 1961 and sentenced to life imprisonment and ten strokes of the whip. Their appeal challenged the identification process, the validity of the charge, and the admissibility of evidence, but the court found the prosecution’s case to be strong, ruling that the appellants had acted in furtherance of a common intention and were equally liable for the crime.

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