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1982 MarsdenLR 395

FEDERAL COURT (KUALA LUMPUR)

SUFFIAN, LP, RAJA AZLAN SHAH, CJ (MALAYA), SALLEH ABAS & ABDUL HAMID, FJJ; AND SEAH, J, DISSENTING


MERDEKA UNIVERSITY BERHAD
versus
GOVERNMENT OF MALAYSIA

CIVIL APPEAL NO 236 OF 1981

Decided On : 02-15-82

Advocates:
Michael Beloff QC (with him Ker Kim Tin, Soo Thien Ming, Tan Chek Yoke, JC Bernatt, Soo Lim Peng, Lee Shan Too, Ong Tin Kim, Low Sik Thong, Ngeow Yin Ngee and Siew Yew Ming) for the appellant.
Tan Sri Datuk Abu Talib bin Othman, Attorney-General, (with him Lim Beng Choon, Senior Federal Counsel) for the respondent.
Solicitors: Baharuddin, Bernatt, Tan & Ker.

Suffian LP

(delivering the Judgment of the Court): The judgment which I am about to deliver is the joint judgment of the Chief Justice, Salleh Abas, F.J. Abdul Hamid, F.J. and myself.

This appeal arises out of the rejection by His Majesty the Yang di-Pertuan Agong of the petition of the plaintiff for permission to establish a private university, Merdeka University ("MU"), which rejection was held by the learned trial Judge to have been lawful. Background Of Events

The background is as follows.

The idea of founding MU was formed in 1967 through the initiative of certain Chinese guilds and associations under the leadership of the United Chinese School Committees' Association and the United Chinese School Teachers' Association ("the two Associations"). On April 14, 1968 at an inaugural meeting of Chinese guilds and associations from all over the country held at the Chinese Assembly Hall in Kuala Lumpur for the proposed university, a Proclamation was passed and approved together with a draft Plan for MU dated April 10, 1968 and issued by the Educational Committee of the two Associations. Mr. Lim Fong Seng, the Chairman of the plaintiff company, stated in his evidence that the Proclamation and Plan truthfully reflected the aims and intention of those who wanted to establish MU and that at that meeting a working committee was set up for its establishment according to the aims and intention shown in these two instruments. The invitation to attend that meeting was only through the Chinese press and the intention was to confine it only to the Chinese community. At the meeting no donations were made but there were pledges of financial support from all the people present. Mr. Lim further said that the public response was very good and donations for the plaintiff were received even before it was registered.

The plaintiff company was incorporated on May 8, 1969 as a company limited by guarantee under the Companies Act, 1965, its primary object being, as stated in its memorandum of association, "to continue, establish and carry on in the Federation of Malaysia a University for the promotion of learning, arts, science and research, the provision of higher education, and the conferment of degrees." The plaintiff was unable to proceed further in view of the unfortunate turbulence that started on May 13, 1969, and in the meanwhile the Universities and University Colleges Act, 1971, Act 30 ("the 1971 Act") was enacted and came into force on April 30, 1971.

The Council of the plaintiff at its meeting on April 23, 1977, resolved to adopt the Proclamation and Plan for MU referred to earlier and to submit a petition to the Yang di-Pertuan Agong under section 6 of the 1971 Act for an incorporation order for the establishment of the proposed MU based on the principles and objectives of these two instruments, and it also appointed a drafting committee for this purpose. Mr. Lim testified that although in 1977 Malaysia had five universities as against only one in 1968, there was still a need for another university because opportunities for tertiary education still remained insufficient, in particular, for those who are not Malays.

Section 6 of the 1971 Act provides:

"6. (1) If, the Yang di-Pertuan Agong is satisfied that it is expedient in the national interest that a University should be established, he may by order —

(a) declare that there shall be established a higher educational institution having the status of a University, which shall be a body corporate, for the purpose of providing, promoting and developing higher education in all such branches of learning as shall be specified in the order;

(b) assign a name and style to that University; and

(c)specify the location of the site which shall be the seat of that University.

(2) An Order made under subsection (1) (hereinafter referred to as the 'Incorporation Order') shall, at the next meeting of Parliament, be laid before both Houses of Parliament."

A petition dated January 30, 1978 praying for an i

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