IMSML Website Article 41/2025: Baharat International F.Z.C v Lai Kim Lian [2024] MLJU 3261 - Application of Mr Justice Ong Chee Kwan’s Decision in The ‘Oriental Dragon’ [2023] MLJU 3050

Today’s article is a short one. It concerns bankruptcy proceedings issue before the Court was whether t currency exchange in USD currency should be at the date of the judgment or the date of the writ. Thankfully, this issue had been sorted out earlier in Muliar Oleg (suing as Master of Ship ‘Oriental Dragon’) & Anor v. The Owners and/or persons in possession or control of the Ship ‘Oriental Dragon’ of the Port of Panama (Brit UW Limited & Ors, interveners) and Another [2023] MLJU 3050 by Mr Justice Ong Chee Kwan, the nation’s favourite Admiralty Judge (as he then was). His Lordship had referred to the decision of Lord Wilberforce in the case of Miliangos v. George Frank (Textiles) Ltd. [1975] 3 All ER 801.

His Lordship explained that when ‘time of payment’ and ‘date of payment’ are mentioned in the Miliangos case, it is a reference to the date of actual payment, or failing such payment, the date on which the Court authorises enforcement of the judgment. His Lordship elaborated that, see Paragraph [70]:

[1] The date of actual payment applies in the case where the judgment is given in foreign currency. This is a case where the Judgment Creditor satisfies the judgment voluntarily without the need for the judgment creditor to take execution proceedings;

[2] However, when the judgment debtor fails to pay and the Judgment Creditor has to apply to Court to enforce the judgment through execution proceedings, the Conversion Date is when the Court authorises the enforcement.

His Lordship observed that the principles that the Court may give judgment in a foreign currency is essentially procedural. The date is used more out of procedural efficacy so that those enforcing the judgment (by levying execution or otherwise) may know what steps are open to them and how far they can go, see Paragraph [70].

In Baharat case, Mr Justice Mohd Radzi Abdul Malik expressly agreed with the approach taken by the Court in Muliar Oleg. In the bankruptcy proceedings before his Lordship held that the date of the currency exchange is more appropriate when the Court gives permission to execute the judgment, not the date of the Writ or the date of the judgment, see Paragraph [11].

Note, if you would like to know more about the Mulair Oleg case, you can read IMSML Website Article 25/2025: Mulair Oleg (Suing as Master of the Ship ‘Oriental Dragon’) and Another v The Owners and/or Persons in Possession or Control of the Ship ‘Oriental Dragon’ of the Port of Panama (Brit UW Limited and Others, Interveners) and Another Case [2023] MLJU 3050 - The Proper Date for the Conversion of the Equivalent in Ringgit Malaysia (RM) of Claims Made in Foreign Currencies

Thank you for reading IMSML Website Article 41/2025

Stay tuned for the next IMSML Website Article 42/2025: New World P&I Service Co Ltd v The Disponent Owner and/or The Demise Charterer of The Ship and/or Vessel “Es Valor” of The Port of Monrovia, Liberia (Huihong (Tianjin) Lease Co Ltd, intervener) [2024] MLJU 3653 - Jurisdictional Challenges and Allegations of a Sham Transaction in a Charterparty Dispute

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,  14 October 2025

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