Assignment 1

Malaysia Legal System - 20 %

GROUP ASSIGNMENT 2 :

COURSE CODE: BA240

SUBJECT NAME: BUSINESS LAW

SUBJECT CODE: LAW 416

MALAYSIAN LEGAL SYSTEM

FACULTY: FACULTY OF BUSINESS AND MANAGEMENT UiTM CAWANGAN

PERLIS KAMPUS ARAU

PREPARED BY: 1. SYAHIRAH YUMNI BINTI MOHAMAD YUSOFF (2021865182)

2. NOR AYUNI IDAYU BINTI HALIM (2021865168)
3. NURFARAH HANIS BINTI AHMAD NADZIR (2021870608)
4. ARIFF DANIEL BIN AZMI (2021822866)

SUBMITTED TO: DR ZETI ZURYANI MOHD ZAKUAN

SUBMISSION 19/11/2021
DATE:
Instructions:

1. In a group of 3, please answer the following question.

2. Your answer must be type written.
3. Your answer must be in pdf format.
4. Please upload your answer in google classroom under the respective topic.
5. Due date is on the 19th of November 2021.

Question:

Stephen was in financial difficulties. He borrowed money from Hisham amounting to RM 25

000 and promised to pay within 2 months. To date, he never pay for the money borrowed.
One day, while driving recklessly in Jalan Semantan, Stephen was stopped by Daud, a
policeman. Daud examined the car found a packet of white powder suspected to be drug kept
in the car boot. Daud told Kamarul, his partner that they had to arrest Stephen. Police
investigation confirmed that the white powder was drug weight at 2 kg.
a. If Stephen is to be sued for money borrowed, which court will have the jurisdiction to try
the case? Explain the jurisdiction of the court.
(10 marks)

If Stephen is to be sued for money borrowed, Stephen will have the jurisdiction for his
case in The Magistrates’ Court. The Magistrates Court deals with minor civil and criminal
matters. The original jurisdiction of the Magistrates Court was governed by financial limits.
This court has the power to conduct preliminary inquiries into serious allegations before they
are brought to the High Court from the Magistrates Court and the Sessions Court. Magistrates
also have their own power to deal with small claims procedures that have a dispute value in
matters not exceeding RM 5,000. The Magistrates’ Court are divided into First Class and
Second-Class Magistrates. Members of the first class magistrate must be from the judicial
and legal services Under the Lower Court (Amendment) Act of 2010, the First Class
Magistrate has jurisdiction to hear all claims and civil claims if the value of the disputed
amount or item does not exceed RM100,000. A civil claim is a dispute of law and fact that
occurs between two or more parties seeking remedies, damages or compensation. Money
lenders who intend to lend money to borrowers shall enter into a money lending agreement
with the borrower and the agreement shall be in a valid and prescribed form while borrower
means someone who lends money with money lenders.

Based on Stephen’s case, he should be charged under a First Class Magistrate.

Magistrates also have their own power to deal with small claims procedures that have a
dispute value in matters not exceeding RM 5,000. In Stephen’s case he was not categorized in
the small claims procedure as he borrowed money from Hisham more than RM 5,000 which
is RM 25,000. This is because Stephen's case will be discussed in the first class civil court
and in this case, Hisham can sue Stephen under the jurisdiction of the First Class Magistrate
for the case of borrowing RM 25000 and violating the loan repayment terms within 2 months.
Through this case the lender has to get a new affidavit and then hisham can already sue the
borrower in court. Therefore, based on Stephen’s case, if Hisham wants to sue Stephen he
needs to get an affidavit to sue Stephen for his actions of not paying the debt on time as
promised. Then, if hisyam wants to settle according to the law to recover the money that
Stephen has borrowed, he must carry out Garnishee proceedings aimed at freezing the
debtor's bank account and ordering the bank to release the money into the debtor's bank for
Hisham.
b. If Stephen is to be charged for possession of drug, which court will have the jurisdiction to
try the case. Explain the jurisdiction of the court.

(10 marks)

If Stephen is to be charged for possession of drugs, he will be charged under The

Magistrate’ Court. A Magistrate' Court's criminal jurisdiction refers to the court's ability to
hear a criminal case involving a crime or an offence. An offence is an act punishable by the
state, as prescribed in a written law, for example, most motoring offences, minor criminal
damage, common assault. There are two classes of Magistrates which is First Class and
Second Class Magistrates. The First Class Magistrate jurisdiction may try all offences
punishable with up to 10 years imprisonment or by fine only and may pass sentences not
exceeding five years imprisonment, a fine of up to RM 10 000, and also whipping of up to
twelve strokes or any of the above sentences combined. In civil matters may try cases where
the matter in disputes does not exceed RM 100,000. While The Second Class Magistrate
jurisdiction is to perform minor functions such as granting bail and mentioning cases. When
involved in a criminal offence, his power to sentence must not exceed six months
imprisonment or a fine not exceeding RM 1,000 or a combination of the two.

Based on Stephen's case, he should be charge under the First Class Magistrate. A First
Class Magistrate Court has jurisdiction to try over all offences that carry a maximum
imprisonment that does not exceed 10 years in jail or are penalised only by a fine. However,
in some cases, for example under the Dangerous Drugs Act 1952 and Betting Act 1953, a fine
of more than RM 10,000 may be imposed by the magistrate. Depend on Stephen's cases, the
police have found a packet of white powder and confirmed that it was drug, perhaps the white
powder drug is heroin, cocaine, or morphine. If so, Stephen should be charge under Section
39B (1) of the Dangerous Drugs Act 1952, it is an offence punishable by imprisonment not
less than two years and not exceeding five years and whipping not less than three strokes but
not more than nine strokes for an accused to possession of 2 to 5 gram of heroin or morphine,
5 to 15 gram of cocaine, 20 to 50 gram of cannabis, 100 to 250 gram of opium and in
possession of 250 to 750 gram of coca leaves. Rely on Stephen cases, Stephen can be accused
on this Section 39B (1) because it shows that he was confirmed by the police through
investigation that the packet of white powder that was found in his car boot was drug weight
at 2 kg.
References :

1. The High Court In Sabah & Sarawak, 2019, Session and Magistrate’s Courts.
https://judiciary.kehakiman.gov.my/portals/web/home/court_jurisdiction.
2. Sophia Ismail, 17 June 2021, The Malaysian Court Hierarchy – A review of
Malaysia’s Civil and Criminal Court Hierarchy
https://www.richardweechambers.com/the-malaysian-court-hierarchy-a-review-of-mal
aysias-civil-and-criminal-court-hierarchy/
3. Chief Registrar’s Office Federal Court of Malaysia, 2019, Magistrate’s Court
https://www.kehakiman.gov.my/en/mahkamah-majistret
4. Yvonne Tew BA, 2011, The Malaysian Legal System
https://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=2944&context=fa
cpub#:~:text=Magistrates'%20Courts%20deal%20with%20minor,years%20or%20by
%20fine%20only

5. AskLegal.MY, 2014-2018, Magistrates Court and Sessions Court

https://asklegal.my/p/malaysia-criminal-magistrate-high-appeal-sessions-federal-court
-hierarchy
6. Bernama Malaysian National News Agency, 1998, Malaysian Law Dangerous Drugs
Act 1952. http://kl98.thecgf.com/athletes/drugs.html
7. Constitutional Law Committee Bar Council Secretariat, August 2010, The
Judiciary-MalaysianBar
https://www.malaysianbar.org.my/cms/upload_files/document/RG6%20ENG.pdf
8. Lee Men Pheng , Ivan Jeron Deeta, Magistrate’s Courts, page 76
9. Lee Men Pheng , Ivan Jeron Deeta, Subordinate Courts in East Malaysia,pages 83