Civil and Commercial Dispute Lawyers in Malaysia
Our civil and commercial dispute lawyers act in contract, shareholder, debt and misrepresentation disputes in the Magistrates' Court, Sessions Court and High Court, from letters of demand and injunctions to trial, settlement and enforcement of judgments.
- Contract and shareholder disputes
- Injunctions and summary judgment
- Judgment enforcement
- Online consultations
How We Can Help
- Breach of contract claims and defences
- Shareholder oppression petitions under section 346
- Debt and unpaid invoice claims
- Misrepresentation and fraud claims in commercial deals
- Urgent injunctions, including Mareva freezing orders
- Enforcement of judgments and settlement agreements
Explore our commercial dispute guides
Reviewed by Ms. Khoo Ai Theng, Founder, Advocate & Solicitor of the High Court of Malaya. Last updated October 2026.
Why Choose Us?
15+ Years
Legal experience
6 Years
Limitation for contract and tort claims, Limitation Act 1953
RM1 Million
Sessions Court limit for most civil claims
12 Years
Limit for an action on a judgment, s 6(3)
Which court will hear my dispute?
In Malaysia, the court that hears a civil claim depends mainly on its value. Under the Subordinate Courts Act 1948, a First Class Magistrate hears claims up to RM100,000 and a Sessions Court hears claims up to RM1 million, with unlimited jurisdiction over motor vehicle accident, landlord and tenant, and distress claims.
- The High Court hears claims above RM1 million and company proceedings such as oppression and winding-up petitions.
- The Kuala Lumpur High Court has dedicated commercial divisions for business disputes.
- Appeals go from the subordinate courts to the High Court, then to the Court of Appeal, and to the Federal Court only with leave. See our appeals page.
- If the contract has an arbitration clause, a court action will normally be stayed in favour of arbitration if the defendant applies in time.
All civil courts apply the Rules of Court 2012. Filing in the right court at the outset avoids wasted costs and delay.
What types of civil and commercial disputes do we handle?
Most commercial disputes in Malaysia fall into a few categories, each with its own legal test.
- A breach of contract claim under the Contracts Act 1950 (Act 136) seeks compensation for loss that naturally arises from the breach or that the parties knew was likely to result (s 74). Where the contract names a sum payable on breach, the Federal Court held in Cubic Electronics Sdn Bhd v Mars Telecommunications Sdn Bhd that actual loss need not be proved, but compensation cannot exceed the named sum and the defaulting party may show it is unreasonable (s 75).
- Where consent to a contract was caused by coercion, fraud or misrepresentation, the contract is voidable at the option of the party whose consent was so caused (s 19).
- A member or debenture holder may apply to court under s 346 of the Companies Act 2016 (Act 777) where the company’s affairs are conducted oppressively or in disregard of their interests. A wrong done to the company itself, such as a director’s breach of duty, is pursued by a derivative action with the court’s leave (s 347).
- Debt claims for unpaid invoices, loans and sums due from guarantors are often resolved by summary judgment.
Our service guides explain breach of contract and shareholder disputes in more detail.
What are the steps in a civil claim?
A typical commercial claim in Malaysia moves through five stages, and many settle before trial.
- A letter of demand sets out the claim and asks for payment or a response. For a company that owes more than RM50,000, a statutory notice of demand under s 466(1)(a) of the Companies Act 2016 gives it 21 days to pay, secure or compound the debt before a winding-up petition may follow.
- The claim is filed by writ and statement of claim, and the defendant enters appearance and files a defence, often with a counterclaim.
- If there is no real defence, the plaintiff may apply for summary judgment under Order 14 of the Rules of Court 2012, and either side may apply to strike out a pleading under Order 18 rule 19.
- The court manages the case under Order 34, sets timelines for documents and witness statements, and will usually raise mediation with the parties.
- The case goes to trial and judgment, followed by any appeal within the time limits.
Since 1 October 2022, a decision dismissing a summary judgment or striking-out application generally cannot be appealed, so these applications must be prepared carefully. A settlement can be recorded as a consent judgment, which is enforceable like any other judgment.
What are the time limits, and what drives the cost?
Under the Limitation Act 1953 (Act 254), an action founded on contract or tort must generally be brought within six years from the date the cause of action accrued (s 6(1)), and an action on a judgment within 12 years from the date it became enforceable (s 6(3)).
- Where the claim is based on fraud or mistake, time runs only from when the claimant discovered it or could with reasonable diligence have discovered it (s 29).
- For negligence claims for latent damage, other than personal injury, an action may still be brought after the six years, within three years from the date of knowledge and subject to a 15-year longstop (s 6A, in force since 1 September 2019).
- The Act applies only in Peninsular Malaysia. Sabah and Sarawak have their own limitation laws.
- Once proceedings start, much shorter deadlines apply, such as 30 days to appeal to the Court of Appeal.
Cost depends on the amount in dispute, the number of witnesses and documents, interlocutory applications such as injunctions, and how early the case settles. The successful party usually recovers costs from the losing party, but the court generally awards a lump sum that may not cover all legal fees.
What remedies can the court grant, and how are judgments enforced?
The usual remedy is damages or payment of the debt, with interest. A judgment debt carries interest at 5% per annum from the date of judgment until payment (Order 42 rule 12, Rules of Court 2012). The court can also grant declarations, specific performance and injunctions.
- An interim injunction under Order 29 requires a bona fide serious issue to be tried, a balance of justice in favour of granting it, and an applicant able to meet its undertaking as to damages (Keet Gerald Francis Noel John v Mohd Noor bin Abdullah). In urgent cases it can be sought ex parte.
- A Mareva injunction restrains a defendant from disposing of assets, and an Anton Piller order allows the claimant’s representatives to enter premises to inspect and preserve evidence.
- A judgment can be enforced by writ of seizure and sale, garnishee proceedings against bank accounts, judgment debtor summons, charging orders or committal for contempt.
- A company that fails to pay a debt above RM50,000 within 21 days of a statutory demand may face a winding-up petition. Bankruptcy of an individual currently requires a debt of at least RM100,000, and Budget 2027 announced an increase to RM150,000 from 2027.
See our debt recovery page for enforcement after judgment.
How NZSK handles civil and commercial disputes
We advise after a consultation, online or in person, once we have reviewed the actual documents. We do not advise on a description of the dispute alone.
- Bring the contract and any variations, invoices, statements of account, letters of demand, emails and WhatsApp messages, board minutes or resolutions, and a short timeline of events.
- We check limitation and other deadlines first, then set out the options, which may include negotiation, mediation, arbitration where the contract requires it, or court proceedings.
- If urgent protection such as an injunction is needed, we say so at the outset and explain the undertaking as to damages it involves.
- We give a fee quotation after the consultation, based on the likely steps and the court.
Ms. Khoo Ai Theng (Maxine Khoo), a partner and Advocate & Solicitor of the High Court of Malaya admitted in 2014, acts in civil and corporate litigation, with consultations at our Puchong and Mont Kiara offices. Businesses that want ongoing early advice can use our corporate advisory retainer.
Frequently Asked Questions
In Peninsular Malaysia, a claim for breach of contract must generally be filed within six years from the date the cause of action accrued, usually the date of breach, under section 6(1) of the Limitation Act 1953. Where fraud or mistake is involved, time runs from when it was discovered or could reasonably have been discovered (section 29). Sabah and Sarawak have their own limitation laws, so check which one applies.
In Malaysia, civil claims up to RM100,000 are generally heard by a First Class Magistrate, claims up to RM1 million by the Sessions Court, and claims above RM1 million by the High Court, under the Subordinate Courts Act 1948. The Sessions Court has unlimited jurisdiction over motor vehicle accident, landlord and tenant, and distress claims. Company matters such as oppression and winding-up petitions go to the High Court.
In Malaysia, a member or debenture holder can apply to the court under section 346 of the Companies Act 2016 if the company's affairs are conducted oppressively, in disregard of their interests, or in an unfairly discriminatory or prejudicial way. The court can make wide orders, including a buy-out of shares, regulating the company's future affairs or winding it up. See our shareholder dispute guide.
Yes. In Malaysia, once the defendant has entered appearance and been served with the statement of claim, the plaintiff can apply for summary judgment under Order 14 of the Rules of Court 2012, except for claims such as defamation or those based on fraud. The court grants it where there is no bona fide triable issue. Since 1 October 2022, a decision dismissing the application generally cannot be appealed.
In Malaysia, an interim injunction is sought under Order 29 of the Rules of Court 2012. The applicant must show a bona fide serious issue to be tried, that the balance of justice favours an injunction, and that it can meet an undertaking as to damages if the injunction later proves unjustified. In urgent cases the application can be made ex parte, with a full hearing to follow.
In Malaysia, a judgment creditor can enforce a judgment through a writ of seizure and sale, garnishee proceedings against the debtor's bank accounts, a judgment debtor summons or a charging order. Against a company that owes more than RM50,000, a statutory demand under section 466 of the Companies Act 2016 can lead to a winding-up petition. Judgment debts carry interest at 5% per annum.
The length of a commercial case in Malaysia depends on the court, the complexity of the dispute, the number of witnesses and whether interlocutory applications are made. A summary judgment application is usually decided within a few months of filing, while a full trial takes longer. Court-assisted mediation, which judges usually raise at case management, can shorten the process if the parties settle.
The cost of a civil or commercial claim in Malaysia depends on the amount in dispute, the court, the volume of documents and witnesses, any urgent applications such as injunctions, and whether the case settles early. The successful party usually recovers part of its costs from the losing party, as the court generally awards a lump sum. NZSK gives a fee quotation after reviewing your documents at a consultation, online or in person.
Owed money or facing a commercial claim?
Limitation periods and court deadlines keep running while a dispute drags on, so early advice protects your position. We advise once we have reviewed your documents at a consultation, online or in person, at our Puchong or Mont Kiara office.
- (+60)12-401 4799 | (+60)3-8060 0267
- [email protected]
Consultation by appointment at Mont Kiara, Kuala Lumpur and Puchong, Selangor, or online.
