Civil litigation and debt recovery — Frequently asked questions

7 · Civil litigation and debt recovery

What is a letter of demand?

A letter of demand (notis tuntutan) is a formal written demand from one party to another, usually for payment of a debt, performance of a contract or a remedy for a wrong. It is normally sent before court proceedings start. It is often useful, but the right approach depends on urgency, the evidence, the time limit and the risk of assets being moved.

Which court hears my civil claim?

It depends mainly on the value. The Magistrates' Court hears claims up to RM100,000, the Sessions Court from RM100,001 to RM1 million, and the High Court above RM1 million or matters outside the lower courts' jurisdiction. The case is generally heard where the cause of action arose or where the defendant resides; for Johor-based defendants that often means the Johor Bahru courts.

What is summary judgment?

Summary judgment under Order 14 lets the court give judgment without a full trial where the defendant has no real defence. Under National Company for Foreign Trade v Kayu Raya Sdn Bhd [1984] 2 MLJ 300, the defendant must show a triable issue of fact or law, not merely a bare assertion that the claim is disputed.

What is the difference between a Writ of Summons and an Originating Summons?

A Writ of Summons under Order 6 of the Rules of Court 2012 starts civil actions with substantial disputes of fact, which are decided after a trial with witnesses. An Originating Summons under Order 7 is used where the issue is mainly the interpretation of a statute or document and the factual dispute is limited, so it is usually decided on affidavits.

How long does a civil case take?

In our experience, 18 to 30 months from filing to judgment is typical for Sessions Court and High Court matters. Complex commercial cases can run longer where several parties or substantial evidence are involved. Court-annexed mediation is increasingly directed during case management, particularly in the Sessions Court, and a settlement can be recorded as a judgment.

What makes a civil claim stronger?

Clear documents, a consistent chronology, credible witnesses and proof of loss usually strengthen a claim, as does an early legal strategy. Keep contracts, invoices, messages and payment records together, and note dates as events happen. Acting early also protects you against time limits; most contract and tort claims must be brought within six years under the Limitation Act 1953.

Can a minority shareholder get relief from oppression?

Yes. Section 346 of the Companies Act 2016 gives relief where a company's affairs are conducted oppressively or in disregard of a member's interests. The court's remedies include buy-out orders, orders regulating the company's conduct, injunctions and, in serious cases, winding up.

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