JUDGMENT

Mahazan Mat Taib J:

A. Introduction

[1] The Plaintiff, a company registered in Myanmar, commenced this action against the defendants, alleging the unlawful seizure of goods belonging to the plaintiff and the wrongful detention of a chartered vessel. The Plaintiff also seeks damages arising from the alleged wrongful and unlawful doings of the defendants. The Defendants deny all allegations made against them.

[2] This matter has undergone a lengthy trial process. In the course of proceedings, the court granted an order for security for costs, pursuant to which a sum of RM200,000.00 was deposited with the court.

[3] Upon hearing the testimonies of witnesses, along with both oral and written submissions from both parties, the court dismissed the plaintiff's claim and ordered costs of RM50,000.00 to be paid to the defendants from the security for costs. Additionally, the court orders that the remaining balance of RM150,000.00 from the security for costs be returned to the plaintiff.

B. Background Facts

[4] For ease of reference, all the named defendants in this action shall be referred to as RMCD and the Marine Department of Malaysia shall be referred to as MDM.

[5] The Plaintiff had chartered a vessel known as Kamberra (IMO 8840236), a Mongolian-flagged vessel, for the purpose of transporting a consignment of cigarettes it had purchased. The cargo was loaded onto Kamberra at Batam Port, and the vessel commenced its voyage on 31 March 2019, bound for Yangon, Myanmar, where the cargo was to be discharged. The consignment consisted of 9,600 master cases of cigarettes.

[6] On 6 April 2019, Kamberra entered Malaysian territorial waters off Langkawi for bunkering. On the same day, the vessel was detained by the First Defendant on suspicion of involvement in the smuggling of illicit cigarettes.

[7] Of the cargo, 4,801 master cases were seized by the First Defendant. Subsequently, the vessel was detained by MDM on 11 April 2019 and later by RMCD on 16 April 2019.

[8] Criminal charges were brought against the crew members of Kamberra before the Langkawi Magistrates' court pursuant to s 135 of the Customs Act 1967 [Act 235]. The prosecution ended unsuccessfully on 27 April 2022. The appeal filed by the Deputy Public Prosecutor was subsequently withdrawn on 5 December 2022. The seized goods, being 4,801 master cases of cigarettes, were ordered by the court to be returned to the plaintiff as the lawful owner.

[9] On 18 July 2019, Kamberra was offered release upon the furnishing of a security bond. The Plaintiff accepted this offer on 2 August 2019. Thereafter, on 19 August 2019, Kamberra sailed from Langkawi to Lumut for maintenance and docking purposes, with the approval of the MDM.

[10] The Plaintiff contends that the vessel sustained damage as a result of the detention and claims the costs of repair. Additionally, the plaintiff alleges that a press conference held by RMCD caused reputational damage to the plaintiff, for which it now claims damages.

[11] For ease of reference and to assist in the appreciation of the factual matrix, the chronology of events is set out below in sequential order by date and corresponding occurrence.

Date Events

31 March 2019 Kamberra departs from Batam to Yangon

5 April 2019 Kamberra is alleged to have arrived in Yangon waters

5 April 2019 Kamberra arrives in Langkawi waters

6 April 2019 Kamberra is searched, and cargo is seized

10 April 2019 Cargo is unloaded from Kamberra to the Customs warehouse

7 April 2019 Crew members are remanded and charged in the Langkawi Magistrates' court

7 April 2019 Kamberra is detained under an interim detention order

11 April 2019 Kamberra is detained by the Marine Department of Malaysia

11 April 2019 A press conference is held

16 April 2019 Kamberra is detained by RMCD

18 July 2019 Offer made to release Kamberra upon bond

2 August 2019 Offer accepted by Plaintiff's solicitors

8 August 2019 Physical possession of Kamberra taken by Plaintiff's representative

19 August 2019 One-way voyage from Langka