The Small Claims Procedure was set up in order to handle disputes between individuals or an individual making a claim against a business in a cheap, easy, and quick manner where the amounts of the claims not exceeding RM 10,000.00. It had been stated under Section 92 of Subordinate Courts Act 1948 where Second Class Magistrate shall have only jurisdiction to try original actions or suits of a civil nature where the Plaintiff seeks to recover a debt or liquidated demand in money payable by the defendant with or without interest, not exceeding RM10,000.00.1
According to Augustine Paul J, the Lordship in Tan Ah Chai v. Loke Jee Yah,2 ‘‘Small claims procedure is to serve as an inexpensive, simplified and speedy mode of prosecuting a claim which is small without legal representation. There is a purpose in denying legal representation in such cases. It has been said that this is to ensure that the objects of such denial are not reduced in value. Though this procedure would therefore serve the needs of a litigant of insufficient means it is not solely targeted at achieving that result. Its underlying purpose is to ensure that there is a balance between the claim made and the expense incurred in pursuing that claim.’ '
2.2 LIMIT OF CLAIM In Malaysia, small claim proceedings are heard in the Second Class Magistrate Court. The procedure initially applied to recovery of debts of not more than RM 3000.00 under Order 54 of the Subordinate Courts Rules 1980, however, since 2012, the rules of subordinate court and high courts have changed and now known as Rules of Courts 2012. Under these new rules, the amount increased to RM 5,000.00. Later, starting from March 1st 2013, the amount had increased to RM 10,000.00 as accordance to the amendment stated under Subordinate Court Act 1948.
It is mandatory to bring the claim that is less than RM10,000.00 according to Section 92 of Subordinate Courts Act 1948. As in the case of
References: Acts: 1. Subordinate Court Act 1948 2. Rules of Court 2012 Websites: 1. Jumin, R. B. (2011, MAY 12). LATAR BELAKANG. Retrieved JULY 16, 2013, from Laman Web Rasmi Mahakamah Negeri Sembilan: http://nsembilan.kehakiman.gov.my/?q=node/350 2. (2013, August 2). Retrieved August 5, 2013, from MalaysiaFactBook : http: //malaysiafactbook.com /Small_ Claims_Court 3. (2013, August 2). Retrieved August 5, 2013, from MalaysiaFactBook : http: //malaysiafactbook.com /Small_ Claims_Court 4. Izuan, K. (2013, March 9). Small Claim Court. Retrieved August 5, 2013, from Legal in Malaysia: http://www.blogger.com/blogin.g?blogspotURL=http://legal-malaysia.blogspot.com/2013/03/small-claim-court-do-it-yourself-diy.html