MALAYSIA Law and Practice Contributed by: Shelina Razaly Wahi and Vincent Chan Siew Onn, Abdullah Chan & Co
2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards The Reciprocal Enforcement of Judgments Act 1958 (REJA 1958) permits the registration and enforcement of judgments obtained in certain countries such as the United Kingdom. A judgment registered under REJA will have the same force and effect as if it had been a judgment originally entered or acquired in the reg - istering court. A judgment obtained in the senior courts of England and Wales would be recognised and enforced by Malaysian courts without re-examination of the issues provided that all of the following criteria are met: • the judgment was not obtained by fraud; • the effect of enforcing the judgment does not con - travene the public policy of Malaysia; • there was no denial of natural justice; • the English court having jurisdiction in the matter applied the appropriate law; • the matter in dispute in the proceedings in the English court had not previously to the date of the judgment in the English court been the subject of a final and conclusive judgment by a court having jurisdiction in the matter; • such English court had jurisdiction to adjudicate the cause of action upon which such judgment was given; • the judgment was obtained in a jurisdiction to which REJA applies; • such judgment is final and conclusive; • such judgment is registered in the High Court of Malaysia; • rights under the judgment are vested in the person by whom the application for registration of such judgment in the High Court of Malaysia was made; and • any judgment sum expressed in a currency other than Malaysian ringgit shall be registered as if it were a judgment for such sum in Malaysian ringgit as, on the basis of the rate of exchange prevailing on the date of the judgment of the English court, is equivalent to the sum so payable. Malaysian courts do not automatically recognise a judgment obtained in a state that is not a reciprocat - ing country under REJA, and thus it is not directly
enforceable by the courts in Malaysia. A fresh action based on the judgment of such court may be brought before the Malaysian courts. Malaysia has ratified the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbi - tral Awards (the “New York Convention”). An award made in connection with a domestic arbitration, or an award from a foreign state which is a party to the New York Convention, shall be recognised as binding and shall be enforceable by entry as a judgment in terms of the award or by action. 2.6.7 Judgments in Foreign Currencies A judgment or order made in a Malaysian court will be expressed in the Malaysian currency in an amount equivalent to the applicable foreign currency amount. 2.6.8 Limitations on Lessors’ Actions Following Termination There is no limitation on the lessor’s ability to recover default interest (or the compounding thereof) or to charge additional rent following termination of the lease for default, including where the lessee fails to return the aircraft, subject to such provisions being reflected in the lease itself. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees Any lease would usually provide that all taxes are borne by the lessee. A lease would need to be stamped in order to be admissible as evidence in court. If the lease was not yet stamped at the time a lessor sought to enforce the lease, then the lessor would need to stamp the lease, and incur a late stamping penalty, prior to commencing the (enforcement) court pro - A lessor ought to comply with the terms of its aircraft lease, including any terms pertaining to notice peri - ods, when terminating such aircraft lease. 2.6.11 Lessees’ Entitlement to Claim Immunity Companies are not generally entitled to immunity from suit. Immunity is granted under very specific and par - ticular circumstances: for example, where statute has granted immunity to persons holding particular posi - tions. Parties may waive their entitlement to sovereign ceedings in reliance on such lease. 2.6.10 Mandatory Notice Periods
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