Planters' Loans Board v Managalam

• Jurisdiction: Malaysia
• Judgment Date: 07 April 1951
• Date: 07 April 1951
• Docket Number: Case No. 180
• Court: Obsolete Court (Malaysia)

Federation of Malaya, High Court.

(Wilson J.)

Case No. 180

Planters' Loans Board

and

Managalam.

Belligerent Occupation — Effects of — Powers and Duties of Occupant — Japanese Occupation of Malaya — Administration of Funds Normally Operated by Sovereign — Issue of Special Currency by Occupant — Validity of Transactions in Such Currency — Legal Effect of Such Transactions after Termination of Occupation — Articles 48 and 53 of Hague Convention No. IV — Debtor and Creditor (Occupation Period) Ordinance, 1947 — The Law of Malaya.

The Facts (as stated by the Court).—“This is an Originating Summons under which the Planters' Loans Board require Madam S. Managalam, the defendant, to show cause why a certain piece of land in the district of Kuala Lumpur should not be sold by public auction for the recovery of all principal moneys, charges, expenses, fees, interest and costs due to the Board in respect of two charges. … The facts are that the defendant borrowed two sums of $22,000 and $3,000 respectively from the plaintiff and charged the land in question to secure repayment to the plaintiff of these sums by two charges dated the 8th day of August, 1940, and the 22nd day of January, 1941, respectively. Both these sums were repayable by half-yearly instalments at specified times. None of these instalments was paid; in fact, nothing at all was repaid until the 17th day of August, 1945, when I find as a fact that a sum of $31,189.52 in repayment of the amount owed by the defendant to the plaintiff was paid voluntarily and without demand to a Custodian of Property in whom the property of the plaintiff had been vested by an Order or Decree of the Japanese occupying power.

“It has been argued by Counsel for the plaintiff that there are three issues for the decision of the Court. …‘1. Whether the debts owed by the defendant on the security of the said Charges … were debts owed to the Government of the Federated Malay States? 2. If the answer to 1 is in the affirmative, whether the payment of $31,189.52 in Japanese occupation currency made by the defendant to the Japanese Custodian … on the 17th day of August, 1945, was, in law and apart from any statutory enactment brought into force after the 31st day of March, 1946, a good and valid payment of the whole of the debts owed by the Defendant … ? 3. If the answer to 1 is in the affirmative, whether the said payment of $31,189.52 in Japanese occupation currency made by the Defendant as aforesaid falls to be revalued under the provisions of the Debtor and Creditor (Occupation Period) Ordinance, 1948?’”

Held: that (1) “the Planters' Loans Board was a...