High Court Allows Review, Reinstates Charges Against Emraz Travel for Failing to Refund Customers

Utusan Malaysia reports on a significant legal development concerning Emraz Travel & Tours Sdn. Bhd., a company previously involved in umrah and travel packages. The High Court has reversed a Magistrate's Court decision that had granted the company a discharge not amounting to acquittal (DNAA) on charges of failing to refund customer money.

This decision by the High Court, allowing a revision sought by the Ministry of Domestic Trade and Cost of Living (KPDN), means the charges against Emraz Travel are reinstated. The company, represented by its directors, had been accused of failing to comply with a Consumer Claims Tribunal order to refund RM31,580 to a customer. The initial DNAA was based on the argument that the company, having been wound up, required High Court permission under the Companies Act 2016 for such proceedings.

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According to the court, the claim by the complainant in this case (company) should be pursued through the filing of proof of debt and does not affect the criminal proceedings initiated by the prosecution.

However, High Court Judge Nurulhuda Nur’aini Mohamad Nor clarified that criminal prosecution does not necessitate permission under Section 471 of the Companies Act 2016, as it differs from debt recovery actions. This ruling establishes a crucial precedent in Malaysia: a company that has been wound up can still face criminal charges. This is a victory for consumer protection, ensuring that companies cannot evade legal accountability simply by ceasing operations. The case will now return to the Magistrate's Court, with the next hearing set for June 24.

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The court's decision today makes this the first case in the country where a wound-up company can still be prosecuted in court.