1. ) FAIZATUL HASANAH BINTI HUSSAIN 2. ) MOHD AZHAR BIN MOHD KHALID v FAUZIAH BINTI HUSSAIN

ba-12b-104-10-2025 High Court (Mahkamah Tinggi) 4 March 2026 • BA-12B-104-10/2025 • 17 min read
16 cases cited (0 SG, 16 foreign)

Outcome

Accordingly, the appeal is allowed. The judgment of the learned Sessions Court dated 29.09.2025 is set aside.

Quoted verbatim from the judgment of High Court (Mahkamah Tinggi) (ba-12b-104-10-2025). Read the full judgment on the official Malaysia Courts portal for the complete decision.

Catchwords

Appeal — Findings of fact — Appellate restraint — Whether appellate intervention justified where trial court misdirected itself in law — Whether there was insufficient judicial appreciation of evidence Company law — Separate legal entity — Company distinct from directors and shareholders — Personal liability of directors — Whether directors may be personally liable for acts relating to company financing — Whether corporate veil may be lifted absent pleaded and proved sham, façade or fraud — Companies Act 2016, ss 20, 21 Contract — Fraud — Fraudulent misrepresentation — Whether representations shown to be false when made — Whether subsequent failure of business venture sufficient to prove fraudulent intent at inception — Contracts Act 1950, s 17 Contract — Undue influence — Family relationship — Sibling relationship — Whether trust and confidence between siblings sufficient to establish domination of will — Whether actual or presumed undue influence proved — Contracts Act 1950, s 16 Evidence — Adverse inference — Failure to call material witness — Failure to produce supporting documents — Whether adverse inference under s 114(g) of the Evidence Act 1950 can substitute proof of essential ingredients of fraud Damages — Special damages — Strict proof — Loss of opportunity — Future profits — Rejected financing application — Whether claimed losses too remote, contingent or speculative — Whether exemplary damages sustainable absent proof of fraud Guarantee — Guarantor — MARA financing — Alleged representations inducing respondent to become guarantor — Whether liability properly imposed personally on appellants.

Practice Areas

Contract Company Law Evidence Damages

Judges (1)

Asmah binti Musa Delivered

Counsel (4)

Akram Hizri, Azad & Azmir Firm Lope Maizura Firm Noorazmir bin Zakaria Counsel Defendant Raja Saidatul Akma binti Raja Lope Counsel Plaintiff

Parties (3)

Faizatul Hasanah binti Hussain Appellant Fauziah binti Hussain Respondent Mohd Azhar bin Mohd Khalid Appellant

Statutes Cited

Companies Act 2016 (Cap 777)
Contracts Act 1950 (Cap 136)
s 16 s 17
Evidence Act 1950 (Cap 56)
s 114(g)

Cases Cited (16)

UK (3)
[1964] 1 All ER 367 [2001] 4 All ER 449 [2014] 1 WLR 2600
MY (13)
[1993] 1 MLJ 443 [2003] 2 CLJ 19 [2004] 4 CLJ 309 [2004] 4 MLRH 168 [2005] 2 MLJ 1 [2006] 3 CLJ 770 [2006] 3 MLRH 359 [2010] 9 CLJ 785 [2017] 1 CLJ 617 [2020] 10 CLJ 273 [2021] 4 CLJ 821 [2022] MLJU 2370 [2025] 1 CLJ 583

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (ba-12b-104-10-2025)