Ong Chee Kwan JC:

Introduction

[1] Can a licensed moneylender recover the outstanding principal sum under an illegal moneylending transaction based on a cause of action for money had and received and or unjust enrichment? How does the issue of illegality to be dealt with in such a claim? These are the issues at play in this judgment.

Background Facts

[2] The Plaintiff is a licensed moneylender under the Moneylending Act 1951 ('the MLA') and has its registered address at D3A-M (Suite B), Jalan Selaman 1, Dataran Palma, Off Jalan Ampang, 68000 Ampang, Selangor Darul Ehsan and its business address at Suite 8.02, 8th Floor (North Block), The Ampwalk 218, Jalan Ampang, 50460 Kuala Lumpur, Wilayah Persekutuan.

[3] At all material times, the Defendant is and was a director and a shareholder of one Instant Bonus Development Sdn Bhd (Company no 988847-P) ('Instant Bonus').

[4] Sometime on 9 July 2018 and 24 August 2018, the Plaintiff and the Defendant entered into 2 moneylending agreements wherein the Plaintiff agreed to provide loans of RM 2,000,000.00 and RM 1,500,000.00 respectively ('the Moneylending Agreements') to Instant Bonus for the purpose of its capital expenditure. The Money