IMSML Web Article 27/2026:  New Golden Sea Shipping Pte Ltd and Another v Mahatit bin Mohd Harun (The Sole Proprietor Reading Under the Name and Style as Delmas Maju Industri and Others) [2025] MLJU 3885 (sessions Court, Klang) - ‘Pretend Agents’ Do Exist in the Shipping Supply Chain

Even though this case was decided in the Sessions Court of Klang, the author could not resist writing about it as it highlighted the very real problem of ‘pretend agents’.

The dispute concerned a lawsuit brought by the Carrier (P) against the Consignor (D1) and two agents (D2 and D3 respectively). The Carrier’s case against D1 was that D1 exercised  control or derived benefit from the shipment. The Carrier’s case against D1 was founded on the fact that D1 appeared on the shipping documents. However, an examination of the facts of this case revealed the following: First, there was no evidence that D1 had consented to the bookings. Second, there was also no evidence that D1 had authorised D2 and D3 to act on its behalf. Third, there was an absence of any instructions from D1 to D2 and D3 concerning the shipment.

The Sessions Court therefore held that the mere appearance of D1 on the shipping documents does not convert a passive party into an active obligor. Sole operational responsibility for the shipment lay with both D2 and D3. The Carrier ascribed the description of ‘forwarding agent’ to D2 and ‘booking agent’ to D3 to establish liability. Liability of both D2 and D3 were founded under Section 188 of the Contracts Act 1950 as they falsely presented themselves as agents of D1. Hence D1 was protected from the unilateral acts of both D2 and D3 who were technically ‘pretend agents’.

In conclusion, the P Carrier could not establish liability against D1 simply on the basis that D1 was a party named in the shipping documents when there was no evidence at all that D1 was involved in the shipment. P’s cases was only established against D2 and D3 who pretended to be agents of D1, although not receiving any instructions to act for D1.

Thank you for reading IMSML Web Article 27/2026

Stay tuned for the next IMSML Web Article 28/2026: Sakura Ferroalloys Sdn Bhd v Allianz General Insurance Co (M) Bhd [2025] MLJU 1037 (High Court, KL) - Warranty for ‘Bulk Shipment’ under a Marine Open Cover policy

Signing-off for today,

Dr Irwin Ooi Ui Joo, LL.B(Hons.)(Glamorgan); LL.M (Cardiff); Ph.D (Cardiff); CMILT

Professor of Maritime and Transport Law

Faculty of Law

Universiti Teknologi MARA Shah Alam

Selangor, Malaysia

Tuesday,  21 July 2026

Note that I am the corresponding author for the IMSML Website Articles. My official email address is: uijoo310@uitm.edu.my