CIVIL LAW ACT 1956

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 67 CIVIL LAW ACT 1956 As at 1 October 2019 2 CIVIL LAW ACT 1956 First Enacted … … … … … … … … 1956 (Ordinance No.5 of 1956) Revised … … … … … … … … … 1972 (Act 67 w.e.f. April 1972 Latest amendment made by Act A1591 which came into operation on ... ... ... ... … … … … 1 September 2019 PREVIOUS REPRINTS First Reprint ... ... ... ... 1993 Second Reprint … … … … 1999 Third Reprint … … … … 2006 3 LAWS OF MALAYSIA Act 67 CIVIL LAW ACT 1956 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title 2. Interpretation PART II GENERAL 3. Application of U.K. common law, rules of equity and certain statutes 4. Administration of insolvent estates, and winding up of companies 5. Application of English law in commercial matters 6. Immovable property PART III FATAL ACCIDENTS AND SURVIVAL OF CAUSES OF ACTION 7. Compensation to persons entitled for loss occasioned by death 8. Effect of death on certain causes of action 4 Laws of Malaysia Act 67 PART IV TORTFEASORS AND AWARD OF INTEREST Section 9. (Deleted) 10. Proceedings against, and contribution between, joint and several tortfeasors 11. Power of Courts to award interest on debts and damages PART V CONTRIBUTORY NEGLIGENCE AND COMMON EMPLOYMENT 12. Apportionment of liability in case of contributory negligence 13. Saving for Merchant Shipping Ordinance 1952 14. Common employment PART VI FRUSTRATED CONTRACTS 15. Adjustment of rights and liabilities of parties to frustrated contracts 16. Provisions as to application of section 15 PART VIA APPORTIONMENT 16A. Interpretation 16B. Rents, etc., to accrue from day to day 16C. Apportioned part of rent, etc., to be payable when next entire portion due 16D. Remedies for recovering apportioned parts 16E. Exclusion of policies of assurance 16F. Exclusion by express stipulation 16G. Validation of past apportionments Civil Law 5 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY Section 17. General restrictions on accumulation of income 18. Qualification of restrictions on accumulation 19. Restriction on accumulation for the purchase of land 20. Validation of appointments where objects are excluded or take illusory shares 21. Executor deemed to be trustee for person entitled to residue on intestacy 22. Charges on property of deceased to be paid primarily out of the property charged 23. Moneys payable under policy of assurance not to form part of the estate of the insured 24. Bona vacantia 25. Saving PART VIII MISCELLANEOUS 26. Agreement by way of gaming or wagering to be null and void 27. Infants 28. No person chargeable with rent bona fide paid to holder under defective title 28A. Damages in respect of personal injury 29. Repeal FIRST SCHEDULE SECOND SCHEDULE 7 LAWS OF MALAYSIA Act 67 CIVIL LAW ACT 1956 An Act relating to the civil law to be administered in Malaysia. [Peninsular Malaysia―7 April 1956; Sabah and Sarawak―1 April 1972, P.U. (A) 424/1971] PART I PRELIMINARY Short title 1. This Act may be cited as the Civil Law Act 1956. Interpretation 2. In this Act, unless the context otherwise requires— “Court” means any court in Malaysia of competent jurisdiction, and includes any Judge thereof whether sitting in court or in chambers; “executor” means the executor or administrator of a deceased person, and includes, as regards any obligation, any person who takes possession of or intermeddles with the property of a deceased person; “persons with disabilities” has the meaning assigned to it in the Persons with Disabilities Act 2008 [Act 685]; “written law” in relation to any part of Malaysia means written law as defined in the law relating to interpretation in that part of Malaysia. 8 Laws of Malaysia Act 67 PART II GENERAL Application of U.K. common law, rules of equity and certain statutes 3. (1) Save so far as other provision has been made or may hereafter be made by any written law in force in Malaysia, the Court shall— (a) in Peninsular Malaysia or any part thereof, apply the common law of England and the rules of equity as administered in England on the 7 April 1956; (b) in Sabah, apply the common law of England and the rules of equity, together with statutes of general application, as administered or in force in England on 1 December 1951; (c) in Sarawak, apply the common law of England and the rules of equity, together with statutes of general application, as administered or in force in England on 12 December 1949, subject however to subparagraph (3)(ii): Provided always that the said common law, rules of equity and statutes of general application shall be applied so far only as the circumstances of the States of Malaysia and their respective inhabitants permit and subject to such qualifications as local circumstances render necessary. (2) Subject to the express provisions of this Act or any other written law in force in Malaysia or any part thereof, in the event of conflict or variance between the common law and the rules of equity with reference to the same matter, the rules of equity shall prevail. (3) Without prejudice to the generality of paragraphs (1)(b) and (c) and notwithstanding paragraph (1)(c)― (i) it is hereby declared that proceedings of a nature such as in England are taken on the Crown side of the Queen’s Bench Division of the High Court by way of habeas corpus or for an order of mandamus, an order of Civil Law 9 prohibition, an order of certiorari or for an injunction restraining any person who acts in an office in which he is not entitled to act, shall be available in Sabah to the same extent and for the like objects and purposes as they are available in England; (ii) the Acts of Parliament of the United Kingdom applied to Sarawak under sections 3 and 4 of the Application of Laws Ordinance of Sarawak [Cap. 2] and specified in the Second Schedule of this Act shall, to the extent specified in the second column of the said Schedule, continue in force in Sarawak with such formal alterations and amendments as may be necessary to make the same applicable to the circumstances of Sarawak and, in particular, subject to the modifications set out in the third column of the said Schedule. Administration of insolvent estates, and winding up of companies 4. (1) In the administration by any Court of the assets of any deceased person whose estate proves to be insufficient for the payment in full of his debts and liabilities, and in the winding up of any company under any law from time to time in force relating to companies, whose assets prove to be insufficient for the payment of its debts and liabilities, and the costs of winding up, the same rules shall prevail and be observed, as to the respective rights of secured and unsecured creditors, and as to debts and liabilities provable, and as to the valuation of annuities and future and contingent liabilities respectively, as are in force for the time being, under the law of bankruptcy, with respect to the estates of persons adjudged bankrupt. (2) All persons who, in any such case, would be entitled to prove for and receive dividends, out of the estate of any such deceased person, or out of the assets of any such company, may come in under the decree or order for the administration of the estate, or under the winding up of the company, and make such claims against the same as they may respectively be entitled to by virtue of this Act. 10 Laws of Malaysia Act 67 (3) Any absolute assignment, by writing, under the hand of the assignor, not purporting to be by way of charge only, of any debt or other legal chose in action, of which express notice in writing has been given to the debtor, trustee or other person from whom the assignor would have been entitled to receive or claim the debt or chose in action, shall be, and be deemed to have been, effectual in law, subject to all equities which would have been entitled to priority over the right of the assignee under the law as it existed in the State before the date of the coming into force of this Act, to pass and transfer the legal right to the debt or chose in action, from the date of the notice, and all legal and other remedies for the same, and the power to give a good discharge for the same, without the concurrence of the assignor. Application of English law in commercial matters 5. (1) In all questions or issues which arise or which have to be decided in the States of Peninsular Malaysia other than Malacca and Penang with respect to the law of partnerships, corporations, banks and banking, principals and agents, carriers by air, land and sea, marine insurance, average, life and fire insurance, and with respect to mercantile law generally, the law to be administered shall be the same as would be administered in England in the like case at the date of the coming into force of this Act, if such question or issue had arisen or had to be decided in England, unless in any case other provision is or shall be made by any written law. (2) In all questions or issues which arise or which have to be decided in the States of Malacca, Penang, Sabah and Sarawak with respect to the law concerning any of the matters referred to in subsection (1), the law to be administered shall be the same as would be administered in England in the like case at the corresponding period, if such question or issue had arisen or had to be decided in England, unless in any case other provision is or shall be made by any written law. Immovable property 6. Nothing in this Part shall be taken to introduce into Malaysia or any of the States comprised therein any part of the law of England relating to the tenure or conveyance or assurance of or succession to any immovable property or any estate, right or interest therein. Civil Law 11 PART III FATAL ACCIDENTS AND SURVIVAL OF CAUSES OF ACTION Compensation to persons entitled for loss occasioned by death 7. (1) Whenever the death of a person is caused by wrongful act, neglect or default, and the act, neglect or default is such as would, if death had not ensued, have entitled the party injured to maintain an action and recover damages in respect thereof , the party who would have been liable if death had not ensued shall be liable to an action for damages, notwithstanding the death of the person injured, and although the death has been caused under such circumstances as amount in law to an offence under the Penal Code [Act 574]. (2) Every such action shall be for the benefit of the wife, husband, parent, child and any person with disabilities under the care, if any, of the person whose death has been so caused and shall be brought by and in the name of the executor of the person deceased. (3) The damages which the party who shall be liable under subsection (1) to pay to the party for whom and for whose benefit the action is brought shall, subject to this section, be such as will compensate the party for whom and for whose benefit the action is brought for any loss of support suffered together with any reasonable expenses incurred as a result of the wrongful act, neglect or default of the party liable under subsection (1): Provided that— (i) in assessing the damages there shall not be taken into account— (a) any sum paid or payable on the death of the person deceased under any contract of assurance or insurance, whether made before or after the coming into force of this Act; 12 Laws of Malaysia Act 67 (b) any sum payable, as a result of the death, under any written law relating to employees’ provident fund; (c) any pension or gratuity, which has been or will or may be paid as a result of the death; or (d) any sum which has been or will or may be paid under any written law relating to the payment of any benefit or compensation whatsoever, in respect of the death; (ii) damages may be awarded in respect of the funeral expenses of the person deceased if such expenses hav