3.Specific Application of English Law in Commercial Matters or Mercantile Law - Section 5 Civil Law Act 1956.
According to section 5 of the Civil Law Act, it states that, the law to be administered shall be the same as would be administered in England in the like case at the date of the coming into force of the Act.
Basically, Section 5 introduces that the former Malay states the law administered in England on 7 April 1956 and the law existing in England on the same date that the issue has to be decided in Melaka, Penang, Sabah, or Sarawak. Thereotically, there is a continuing reception of English Law in these four states while in the other states the reception stops at the cut-off dates concerning commercial matters. However, Malaysian judges seldom refer to the above provisions when they make references to attempt or to follow the common law which causes the Malaysian judges to use the English precedents quite freely regardless where the case took place in Malaysia. For example in the case of Jamil bin Harun v Yang Kamsiah & Anor , the Federal Court had accepted and followed the principles laid down in the House of Lords in Lim Poh Choo v Camden and Islington Area Health Authority , which had itemized an award of damages in a personal injury case. One of the grounds of appeal against the Federal Court decision was that as a matter of Malaysian law it was wrong to itemize an award of damages in personal injury cases, and it was alleged by counsel for the appellant that