CURRENCY

Foreign currency

In the case of Oversea Chinese Banking Corp Ltd v Firm of Yaik Joo Ann [1936] MLJ 110, High Court, Straits Settlements, the plaintiff, Oversea Chinese Banking Corporation (OCBC), sued the defendant, Firm of Yaik Joo Ann, for the sum of $1,000. The plaintiff claimed that the defendant had borrowed the money from it in Singapore dollars, but had failed to repay it. The defendant argued that the loan had been made in Straits Settlements dollars, which were worth less than Singapore dollars. The court held that the loan had been made in Singapore dollars, and that the defendant was therefore liable to repay the plaintiff the full amount.



Currency - Foreign currency - Conversion into local currency - Agreement under seal - Purchase money payable in 'dollars (gold)'

In the case of Nanyo Printing Office v Linotype & Machinery Ltd [1933] MLJ 186, High Court, Straits Settlements, the plaintiff, Nanyo Printing Office, sued the defendant, Linotype & Machinery Limited, for damages for breach of contract. The plaintiff had agreed to purchase a Linotype machine from the defendant for £1,000. The purchase price was payable in "dollars (gold)", which were a type of foreign currency. The defendant failed to deliver the machine, and the plaintiff sued for damages. The court held that the defendant was in breach of contract, and that the plaintiff was entitled to damages. The court also held that the damages should be converted into Straits Settlements dollars, which were the local currency.





Currency - Foreign currency - Conversion into local currency - Claim for damages

In the case of Tiong Ing Chiong v Giovanni Vinetti [1984] 2 MLJ 169, Privy Council Appeal from Brunei, the plaintiff, Tiong Ing Chiong, sued the defendant, Giovanni Vinetti, for damages for breach of contract. The plaintiff had agreed to sell the defendant a piece of land in Brunei for $100,000. The purchase price was payable in US dollars. The defendant failed to pay the purchase price, and the plaintiff sued for damages. The court held that the defendant was in breach of contract, and that the plaintiff was entitled to damages. The court also held that the damages should be converted into Brunei dollars, which were the local currency.





Currency - Foreign currency - Offences relating to - Foreign bank soliciting and offering banking facilities in foreign currency - Foreign bank has neither branch or office in Malaysia - Meaning of ‘person resident - Whether amounted to Malaysian citizen borrowing foreign currency from person outside Malaysia - Shares transferred to nominees in and outside Malaysia as security for loan - Whether amounted to ‘issuing of security - Exchange Control Act 1953 ss 4 & 11(1)

In the case of Banque Nasionale De Paris v Wuan Swee May & Anor [2000] 3 MLJ 587, the plaintiff, Banque Nationale de Paris (BNP), sued the defendants, Wuan Swee May and Wuan Swee Heng, for the sum of US$100,000. The plaintiff claimed that the defendants had borrowed the money from it, but had failed to repay it. The defendants argued that the loan had been made in breach of the Exchange Control Act 1953. The court held that the loan had been made in breach of the Act, and that the defendants were therefore liable to repay the plaintiff the full amount