Gunalan Muniandy JCA:

Introduction

[1] This is an appeal by the appellants/defendants ('D1 - D4') in the Court below against the decision of the Learned High Court Judge ('LHCJ') wherein the respondent/plaintiff's claim against D1 - D4 was allowed with no order as to costs.

[2] The plaintiff's pleaded claim was premised on the appellants having carried on an illegal moneylending business in regard to the purported Sale and Purchase Agreement ('SPA') with the respondent which was allegedly an unlawful loan agreement.

Background Facts

Plaintiff/Respondent's Case

[3] On or about 15 August 2015, the plaintiff borrowed RM600,000.00 ("1st Loan") from CML Realty Sdn Bhd ("CML"). Regarding the 1st Loan, the 1st Loan was an unlicensed moneylending business for which the plaintiff handed the Issue Document of Title ("IDT") to CML's solicitors, Messrs Khor & Rafidah ("Messrs KR"), as collateral for the 1st Loan.

[4] The plaintiff and CML signed a Sale and Purchase Agreement dated 21 July 2015 ("SPA (CML)") which was prepared by Messrs KR According to the SPA (CML), the plaintiff purportedly sold the Property to CML for RM600,000.00 and the plaintiff paid monthly interest for the 1st Loan to