JUDGMENT

Arziah Mohamed Apandi JC:

[1] "but weigh things equitably and skimp not in the balance" (55:9). The tafseer by Al-Maududi reads — That is, as you are living in a balanced universe, whose entire system has been established on justice, you should also adhere to justice. For if you act unjustly within the sphere in which you have been given authority, and fail to render the rights of others, you would indeed be rebelling against the nature of the universe; for the nature of this universe does not admit of injustice and perversion and violation of the rights. Not to speak of a major injustice, even if a person fraudulently deprives another of an ounce of something, by giving him short measure, he disturbs the balance of the entire universe.

[2] This case portrays how a beautiful and long relationship between 2 individuals is ruined because of their greed for money. Money has made them slaves in their pursuit of wealth, causing them to sacrifice the sanctity of trust, honesty, and sincerity. I made this decision with a heavy heart, but was content that I had made the right one. Their source of dispute is one of the many agreements, like below.

Introduction

[3] The Plaintiffs' claim is for the recovery of RM2.2 million allegedly invested with the 1st Defendant through the 2nd, 3rd and 4th Defendants under eleven investment agreements entered into between May 2018 and March 2020. The Plaintiffs allege that the Defendants fraudulently misrepresented the existence of projects that would generate returns on these investments. At the outset, the claim looks like any ordinary contract claim where one party breaches the payment term and the aggrieved party would be entitled to recourse. But, there is a twist in the contracts. The Defendants deny any fraudulent conduct and allege that the investment agreements constitute disguised moneylending transactions, which violate the Moneylenders Act 1951 (MLA 1951), rendering them void and unenforceable.

[4] The Plaintiffs comprise of Noraini Binti Yatim ((P1)(primary investor), her son-in-law Mohd Farihan Bin Azizan (P2), her friend Eileen Wong Mei Foong (P3) and her daughter Nur Aira Binti Abd Rahim (P4) have brought action against Inter City Services & Travel Sdn Bhd (D1)(a travel agency operating since 1985), its directors and shareholders Norani Binti Ismail (D2) and Zakaria Hj Flassan Basaree (D3)(husband and wife), and their son Norman Bin Zakaria (D4) (owner of Essence Pro Services).

Relationship Between The Parties

[5] All the parties have a long-standing relationship. P1 knew D2 and D3 for over 30 years through work, as she was employed as a hotel manager and D1 is the company was involved in travel agency business. P3 knew D2 and D3 for about 20 years through work at the same hotel. Family relationships exist among the parties: P1 is the mother of P4 and mother-in-law of P4. P2 and P4 are husband and wife. Similarly, D2 and D3 are husband and wife while D4 is their son.

Parties Claims And Defences

[6] Between May 2018 and March 2020, the parties except D4, executed eleven investment agreements totalling RM2.2 million, with P1 contributing RM1,350,000.00, P2 RM600,000.00, P3 RM50,000.00, and P4 RM200,000.00. These agreements endorsed 30% annual returns (2.5% monthly) and allegedly involved projects with government-linked companies. D2 and D3 purportedly approached P1, claiming D1 required additional capital for multiple projects.

[7] The Plaintiffs aver that the Defendants engaged in fraudulent misrepresentation by fabricating non-existent investment projects and conspired to defraud them by creating sham agreements to induce misappropriated fund transfers. They seek full recovery of their RM2.2 million investment based on fraudulent misrepresentation, conspiracy to defraud, and unjust enrichment. Their case highlights the Defendants' admission of receiving the funds but failing to demonstrate the existence of any investment projects, as well as D2's admission that some funds were transferr