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CIVIL LAW ACT 1956 (REVISED - 1972)

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1 PART I PRELIMINARY-1. Short Title.

This Act may be cited as the Civil Law Act 1956 .


2 PART I PRELIMINARY-2. Interpretation.

In this Act unless the context otherwise requires:

  "Court"  means any court in Malaysia of competent jurisdiction, and includes any Judge thereof whether sitting in court or in chambers;

  "executor"  means the executor or administrator of a deceased person, and includes, as regards any obligation, any person who takes possession of or intermeddles with the property of a deceased person;

  "persons with disabilities"  has the meaning assigned to it in the Persons with Disabilities Act 2008 [ Act 685 ];

[Ins. Act A1591]

  "written law"  in relation to any part of Malaysia means written law as defined in the law relating to interpretation in that part of Malaysia.



Legal Comments

Notes:- The Civil Law Act 1956 (Malaysia) references in the sources contain context about English common law reception; not specifically applicable to the Malaysian Act 1956 in detail here. Where the provided sources discuss civil jurisdiction, pensions, gratuity, family pension, land, and tax/revision matters, the citations are used to illustrate how civil remedies, statutory interpretations, and government rule-making interact with Section 2-style foundational principles (definition and scope) in varied jurisdictions. Where specific content about Act 1956 Section 2 is not available in the sources, the point is omitted.

3 PART II GENERAL-3. Application of U.K. common law, rules of equity and certain statutes.

(1) Save so far as other provision has been made or may hereafter be made by any written law in force in Malaysia, the Court shall:

(a) in Peninsular Malaysia or any part thereof, apply the common law of England and the rules of equity as administered in England on the 7 April 1956;

(b) in Sabah, apply the common law of England and the rules of equity, together with statutes of general application, as administered or in force in England on 1 December 1951;

(c) in Sarawak, apply the common law of England and the rules of equity, together with statutes of general application, as administered or in force in England on 12 December 1949, subject however to subparagraph (3)(ii):

Provided always that the said common law, rules of equity and statutes of general application shall be applied so far only as the circumstances of the States of Malaysia and their respective inhabit

4 PART II GENERAL-4. Administration of insolvent estates, and winding up of companies.

(1) In the administration by any Court of the assets of any deceased person whose estate proves to be insufficient for the payment in full of his debts and liabilities, and in the winding up of any company under any law from time to time in force relating to companies, whose assets prove to be insufficient for the payment of its debts and liabilities, and the costs of winding up, the same rules shall prevail and be observed, as to the respective rights of secured and unsecured creditors, and as to debts and liabilities provable, and as to the valuation of annuities and future and contingent liabilities respectively, as are in force for the time being, under the law of bankruptcy, with respect to the estates of persons adjudged bankrupt.

(2) All persons who, in any such case, would be entitled to prove for and receive dividends, out of the estate of any such deceased person, or out of the assets of any such company, may come in under the decree

5 PART II GENERAL-5. Application of English law in commercial matters.

(1) In all questions or issues which arise or which have to be decided in the States of Peninsular Malaysia other than Malacca and Penang with respect to the law of partnerships, corporations, banks and banking, principals and agents, carriers by air, land and sea, marine insurance, average, life and fire insurance, and with respect to mercantile law generally, the law to be administered shall be the same as would be administered in England in the like case at the date of the coming into force of this Act, if such question or issue had arisen or had to be decided in England, unless in any case other provision is or shall be made by any written law.

(2) In all questions or issues which arise or which have to be decided in the States of Malacca, Penang, Sabah and Sarawak with respect to the law concerning any of the matters referred to in subsection (1), the law to be administered shall be the same as would be administered in England in the like

6 PART II GENERAL-6. Immovable property.

Nothing in this Part shall be taken to introduce into Malaysia or any of the States comprised therein any part of the law of England relating to the tenure or conveyance or assurance of or succession to any immovable property or any estate, right or interest therein.


7 PART III FATAL ACCIDENTS AND SURVIVAL OF CAUSES OF ACTION-7. Compensation to the family of a person for loss occasioned by his death.

(1) Whenever the death of a person is caused by wrongful act, neglect or default, and the act, neglect or default is such as would, if death had not ensued, have entitled the party injured to maintain an action and recover damages in respect thereof, the party who would have been liable if death had not ensued shall be liable to an action for damages, notwithstanding the death of the person injured, and although the death has been caused under such circumstances as amount in law to an offence under the Penal Code [Act 574].

(2) Every such action shall be for the benefit of the wife, husband, parent, and child, child and any person with disabilities under the care, if any, of the person whose death has been so caused and shall be brought by and in the name of the executor of the person deceased.

[Ins. Act A1591]

(3) The damages which the party who shall be liable under subsection (1) to pay to the party fo

8 PART III FATAL ACCIDENTS AND SURVIVAL OF CAUSES OF ACTION-8. Effect of death on certain causes of action.

(1) Subject to this section, on death of any person all causes of action subsisting against or vested in him shall survive against, or, as the case may be, for the benefit of, his estate:

Provided that this subsection shall not apply to causes of action for defamation or seduction or for inducing one spouse to leave or remain apart from the other or to any claim for damages on the ground of adultery.

(2) Where a cause of action survives as aforesaid for the benefit of the estate of a deceased person, the damages recoverable for the benefit of the estate of that person:

(a) shall not include any exemplary damages, any damages for bereavement made under subsection 7(3A), any damages for loss of expectation of life and any damages for loss of earnings in respect of any period after that person's death;

(b) in the case of a breach of promise to marry shall be limited to such damage, if any, to

9 PART IV TORTFEASORS AND AWARD OF INTEREST-9. [Deleted by Ordinance No. 36 of 1957].

[Deleted by Ordinance No. 36 of 1957] .


10 PART IV TORTFEASORS AND AWARD OF INTEREST-10. Proceedings against, and contribution between, joint and several tortfeasors.

(1) Where damage is suffered by any person as a result of a tort (whether a crime or not):

(a) judgment recovered against any tortfeasor liable in respect of that damage shall not be a bar to an action against any other person who would, if sued, have been liable as a joint tortfeasor in respect of the same damage;

(b) if more than one action is brought in respect of that damage by or on behalf of the person by whom it was suffered, or for the benefit of the estate, or of the wife, husband, parent or child, of that person, against tortfeasors liable in respect of the damage (whether as joint tortfeasors or otherwise) the sums recoverable under the judgments given in those actions by way of damages shall not in the aggregate exceed the amount of the damages awarded by the judgment first given; and in any of those actions, other than that in which judgment is first given, the plaintiff shall not be entitled

11 PART IV TORTFEASORS AND AWARD OF INTEREST-11. Power of Courts to award interest on debts and damages.

(1) In any proceedings tried in any Court for the recovery of any debt or damages, the Court may, if it thinks fit, order that there shall be included in the sum for which judgment is given interest as such rate as it thinks fit on the whole or any part of the debt or damages for the whole or any part of the period between the date when the cause of action arose and the date of the judgment:

Provided that nothing in this section:

(a) shall authorize the giving of interest upon interest;

(b) shall apply in relation to any debt upon which interest is payable as of right whether by virtue of any agreement or otherwise; or

(c) shall affect the damages recoverable for the dishonour of a bill of exchange.

(2) Where interest is awarded under subsection (1) for recovery of damages under section 6a of the Limitation Act 1953 [Act 254], the interest may be given for the

12 PART V CONTRIBUTORY NEGLIGENCE AND COMMON EMPLOYMENT-12. Apportionment of liability in case of contributory negligence.

(1) Where any person suffers damage as the result partly of his own fault and partly of the fault of any other person, a claim in respect of that damage shall not be defeated by reason of the fault of the person suffering the damage, but the damages recoverable in respect thereof shall be reduced to such extent as the Court thinks just and equitable having regard to the claimant's share in the responsibility for the damage:

Provided that:

(a) this subsection shall not operate to defeat any defence arising under a contract; and

(b) where any contract or written law providing for the limitation of liability is applicable to the claim the amount of damages recoverable by the claimant by virtue of this subsection shall not exceed the maximum limit so applicable.

(2) Where damages are recoverable by any person by virtue of the foregoing subsection subject to such reduction as is therein mentioned, t

13 PART V CONTRIBUTORY NEGLIGENCE AND COMMON EMPLOYMENT-13. Saving for Merchant Shipping Ordinance 1952.

(1) Section 12 shall not apply to any claims to which section 513 of the Merchant Shipping Ordinance 1952 [Ord. No. 70 of 1952] , or the corresponding provisions of any other law apply and those provisions shall have effect as if this Act had not been passed.

(2) The provisions mentioned in subsection (1) shall not apply to any case where the acts or omissions giving rise to the claim occurred before the coming into force of this Act.


14 PART V CONTRIBUTORY NEGLIGENCE AND COMMON EMPLOYMENT-14. Common employment.

(1) It shall not be a defence to an employer who is sued in respect of personal injuries caused by the negligence of a person employed by him, that that person was at the time the injuries were caused in common employment with the person injured.

(2) Any provision contained in a contract of service or apprenticeship, or in an agreement collateral thereto (including a contract or agreement entered into before the coming into force of this Act) shall be void so far as it would have the effect of excluding or limiting any liability of the employer in respect of personal injuries caused to the person employed or apprenticed by the negligence of persons in common employment with him.

(3) For the purpose of this section "personal injury" includes any disease and any impairment of a person's physical or mental condition, and the expression "injured" shall be construed accordingly.


15 PART VI FRUSTRATED CONTRACTS-15. Adjustment of rights and liabilities of parties to frustrated contracts.

(1) Where a contract has become impossible of performance or been otherwise frustrated, and the parties thereto have for that reason been discharged from the further performance of the contract, subsections (2) to (6) shall, subject to section 16, have effect in relation thereto.

(2) All sums paid or payable to any party in pursuance of the contract before the time when the parties were so discharged (in this Act referred to as "the time of discharge") shall, in the case of sums so paid, be recoverable from him as money received by him for the use of the party by whom the sums were paid, and, in the case of sums so payable, cease to be so payable:

Provided that, if the party to whom the sums were so paid or payable incurred expenses before the time of discharge in, or for the purpose of, the performance of the contract, the Court may, if it considers it just to do so having regard to all the circumstances of the case, allow him to retai

16 PART VI FRUSTRATED CONTRACTS-16. Provisions as to application of section 15.

(1) Section 15 shall apply to contracts whether made before or after the coming into force of this Act.

(2) Section 15 shall apply to contracts to which the Government is a party in like manner as to contracts between subjects.

(3) Where any contract to which section 15 applies contains any provisions which, upon the true construction of the contract, is intended to have effect in the event of circumstances arising which operate, or would but for the said provision operate, to frustrate the contract, or is intended to have effect whether those circumstances arise or not, the Court shall give effect to the said provision and shall only give effect to section 15 to such extent, if any, as appears to the Court to be consistent with the said provision.

(4) Where it appears to the Court that a part of any contract to which section 15 applies can properly be severed from the remainder of the contract, being a part wholly performed bef

16A PART VIA APPORTIONMENT-16A. Interpretation.

In this Part, unless the context otherwise requires:

"annuities" includes salaries and pensions;

"dividends" includes (besides dividends strictly so called) all payments made by the name of dividend, bonus, or otherwise out of the revenue of trading or other public companies, divisible between all or any of the members of the respective companies, whether the payments are usually made or declared at any fixed times or otherwise; and all such divisible revenue shall, for the purposes of this Part, be deemed to have accrued by equal daily increment during and within the period for or in respect of which the payment of the same revenue is declared or expressed to be made, but the said word "dividends" does not include payments in the nature of a return or reimbursement of capital;

"rents" includes all periodical payments or renderings in lieu of or in the nature of rent but does not include rent payable to the State Au

16B PART VIA APPORTIONMENT-16B. Rents, etc, to accrue from day to day.

All rents, annuities, dividends, and other periodical payments in the nature of income (whether reserved or made payable under an instrument in writing or otherwise) shall, like interest on money lent, be considered as accruing from day to day, and shall be apportionable in respect of time accordingly.


16C PART VIA APPORTIONMENT-16C. Apportioned part of rent, etc, to be payable when the next entire portion due.

The apportioned part of any such rent, annuity, dividend, or other payment shall be payable or recoverable, in the case of a continuing rent, annuity, or other such payment, when the entire portion of which such apportioned part forms part becomes due and payable, and not before; and in the case of a rent, annuity, or other such payment determined by re-entry, death, or otherwise, when the next entire portion of the same would have been payable if the same had not so determined, and not before.


16D PART VIA APPORTIONMENT-16D. Remedies for recovering apportioned parts.

All persons and their respective executors, administrators, and assigns, and also the executors, administrators, and assigns respectively of persons whose interest determine with their own deaths, shall have such or the same remedies for recovering such apportioned parts as aforesaid when payable (allowing proportionate parts of all just allowances) as they respectively would have had for recovering such entire portions as aforesaid if entitled thereto respectively:

Provided that persons liable to pay rents reserved out of or charged on lands or tenements, and the same lands or tenements, shall not be resorted to for any such apportioned part forming part of an entire or continuing rent as aforesaid specifically, but the entire or continuing rent, including such apportioned part, shall be recovered and received by the person who, if the rent had not been apportionable under this Part or otherwise, would have been entitled to such entire or cont

16E PART VIA APPORTIONMENT-16E. Exclusion of policies of assurance.

Nothing in this Part shall render apportionable any annual sums made payable in policies of assurance of any description.


16F PART VIA APPORTIONMENT-16F. Exclusion by express stipulation.

This Part shall not extend to any case in which it may be expressly stipulated that no apportionment shall take place.


16G PART VIA APPORTIONMENT-16G. Validation of past apportionments.

No payment, composition, discharge or settlement of account made or given prior to 28 December 1928, in Malacca or Penang, or to the commencement of this Part in other States shall be deemed invalid by reason only of the fact that it was made or given in pursuance of the apportionment of a periodical payment not lawfully apportionable, if the apportionment would have been lawful, had it been made after the aforesaid date and under this Part.


17 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-17. General restrictions on accumulation of income.

(1) No person may by any instrument or otherwise settle or dispose of any property in such manner that the income thereof shall, save as hereinafter mentioned, be wholly or partially accumulated for any longer period than one of the following:

(a) the life of the grantor or settlor;

(b) a term of eighteen years from the death of the grantor, or settlor;

(c) the duration of the minority or respective minorities of any person living or en ventre sa mere at the death of the grantor or settlor; or

(d) the duration of the minority or respective minorities only of any person who under the limitations of the instrument directing the accumulations would, for the time being, if of full age, be entitled to income directed to be accumulated.

(2) In every case where any accumulation is directed otherwise than as in subsection (1), the direction shall (save as her

18 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-18. Qualification of restrictions on accumulation.

Where accumulations of surplus income are made during a minority under any statutory power or under the general law, the period for which the accumulations are made is not (whether the trust was created or the accumulations were made before or after the coming into force of this Act) to be taken into account in determining the periods for which accumulations are permitted to be made by section 17, and accordingly an express trust for accumulation for any permitted period shall not be deemed to have been invalidated or become invalid, by reason of accumulations also having been made as aforesaid during the minority.


19 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-19. Restriction on accumulation for the purchase of land.

No person may settle or dispose of any property in such a manner that the income thereof shall be wholly or partially accumulated for the purchase of land only for any longer period than the duration of the minority or respective minorities of any person who, under the limitations of the instrument directing the accumulation, would for the time being, if he had attained his majority, be entitled to the income so directed to be accumulated.


20 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-20. Validation of appointments where objects are excluded or take illusory shares.

(1) No appointment made in exercise of any power to appoint any property among two or more objects shall be invalid on the ground that:

(a) an unsubstantial, illusory, or nominal share only is appointed to or left unappointed to devolve upon any one or more of the objects of the power; or

(b) any object of the power is thereby altogether excluded, but every such appointment shall be valid notwithstanding that any one or more of the objects is not thereby, or in default of appointment, to take any share in the property.

(2) This section shall not affect any provision in the instrument creating the power which declares the amount of any share from which any object of the power is not to be excluded.

(3) This section shall apply to appointments made before or after the coming into force of this Act.


21 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-21. Executor deemed to be trustee for person entitled to residue on intestacy.

When any person dies or has died, having by his will, appointed any person to be his executor, the executor shall be deemed to be a trustee for the person, if any, who would be entitled to the estate in case the person died intestate in respect of any residue not expressly disposed of, unless it appears by the will that the person so appointed executor was intended to take the residue beneficially.


22 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-22. Charges on property of deceased to be paid primarily out of the property charged.

(1) Where a person dies possessed of, or, entitled to, or under a general power of appointment by his will disposes of, an interest in property, which at the time of his death is charged with the payment of money, whether by way of mortgage, charge or otherwise (including a lien for unpaid purchase money), and the deceased has not by will, deed or other document signified a contrary or other intention, the interest so charged, shall as between the different persons claiming through the deceased, be primarily liable for the payment of the charge; and every part of the said interest, according to its value, shall bear a proportionate part of the charge on the whole thereof.

(2) Such contrary or other intention shall not be deemed to be signified-

(a) by a general direction for the payment of debts or of all the debts of the testator out of his personal estate, or his residuary real and personal estate, or his residua

23 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-23. Moneys payable under policy of assurance not to form part of the estate of the insured.

(1) A policy of assurance effected by any man on his own life and expressed to be for the benefit of his wife or of his children or of his wife and children or any of them, or by any woman on her own life and expressed to be for the benefit of her husband or of her children or of her husband and children or any of them, shall create a trust in favour of the objects therein named, and the moneys payable under any such policy shall not so long as any object of the trust remains unperformed form part of the estate of the insured or be subject to his or her debts.

(2) If it is proved that the policy was effected and the premiums paid with intent to defraud the creditors of the insured, they shall be entitled to receive out of the moneys payable under the policy a sum equal to the premiums so paid.

(3) The insured may by the policy or by any memorandum under his or her hand appoint a trustee or trustees of the moneys payable under the policy

24 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-24. Bona vacantia.

When a right to the personal estate of any person who dies intestate without next of kin has accrued to the Government, the personal estate or the proceeds thereof shall form part of the Consolidated Fund and shall be appropriated as part of the Fund to such public purposes as the Yang di-Pertuan Agong from time to time thinks proper and directs:

Provided that the Yang di-Pertuan Agong may by warrant order the transfer of the whole or any part of such personal estate or the proceeds thereof to any person who shall establish to the satisfaction of the Yang di-Pertuan Agong any equitable or moral claim thereto.


25 PART VII DISPOSAL AND DEVOLUTION OF PROPERTY-25. Saving.

Nothing in this Part shall affect the disposal of any property according to Muslim law or, in Sabah and Sarawak, native law and custom.


26 PART VIII MISCELLANEOUS-26. Agreement by way of gaming or wagering to be null and void.

(1) All contracts or agreements, whether by parol or in writing, by way of gaming or wagering shall be null and void.

(2) No action shall be brought or maintained in any Court for recovering any sum of money or valuable thing alleged to be won upon any wager or which has been deposited in the hands of any person to abide the event on which any wager has been made.

(3) Subsections (1) and (2) shall not be deemed to apply to any subscription or contribution, or agreement to subscribe or contribute, for or toward any plate, prize, or sum of money to be awarded to the winner of any lawful game, sport, pastime or exercise.

(4) Any promise, express or implied, to pay any person any sum of money paid by him under or in respect of any contract or agreement rendered null and void by subsections (1) and (2), or to pay any sum of money by way of commission, fee, reward or otherwise in respect of any such contract or of any services in rela

27 PART VIII MISCELLANEOUS-27. Infants.

In all cases relating to the custody and control of infants the law to be administered shall be the same as would have been administered in like cases in England at the date of the coming into force of this Act, regard being had to the religion and customs of the parties concerned, unless other provision is or shall be made by any written law.


28 PART VIII MISCELLANEOUS-28. No person chargeable with rent bona fide paid to holder under defective title.

(1) No person shall be chargeable with any rents or profits of any immovable property which he has bona fide paid over to any person of whom he bona fide held the same notwithstanding it afterwards appears that the person to whom the payment was made had no right to receive such rents or profits.

(2) If any person erects any building or makes an improvement upon any land held by him in the bona fide belief that he had an estate in fee simple or other absolute estate, and that person, his executor or assign, or his under-tenant is evicted from the land by any person having a better title, the person who erected the building or made the improvement, his executor or assign shall be entitled either to have the value of the building or improvement so erected or made while the land was held by him and in that belief estimated and paid or secured to him or at the option of the person causing the eviction to purchase the interest of t

28A PART VIII MISCELLANEOUS-28A. Damages in respect of personal injury.

(1) In assessing damages recoverable in respect of personal injury which does not result in death, there shall not be taken into account:

(a) any sum paid or payable in respect of the personal injury under any contract of assurance or insurance, whether made before or after the coming into force of this Act;

(b) any pension or gratuity, which has been or will or may be paid as a result of the personal injury; or

(c) any sum which has been or will or may be paid under any written law relating to the payment of any benefit or compensation whatsoever in respect of the personal injury.

(2) In assessing damages under this section:

(a) no damages shall be recoverable in respect of any loss of expectation of life caused to the plaintiff by the injury;

(b) if the plaintiff's expectation of life has been reduced by the injury, the

29 PART VIII MISCELLANEOUS-29. Repeal.

The Ordinances and Enactments set out in the First Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.


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