Most frequently asked questions for small claims procedure in Malaysia

1. What is small claims procedure?

   The small claims procedure is a relatively cheap, fast and easy way for parties to resolve some types of disputes in the Magistrates’ Court, generally without having to engage a solicitor.

2. What is a “small claim”?

   A “small claim” is a claim for money where the amount in dispute or the value of the subject matter of the claim does not exceed RM5,000.

3. Do you (an individual) need a lawyer to file a claim under small claims procedure?

   No legal representation is allowed.

4. Can a company bring an action under small claims procedure?

   No, only an individual plaintiff can bring an action under small claims procedure.

5. Can a company defend a small claim without legal representative?

   Yes. The Rules of Court (Amendment) 2020 allows a company or an organization to be represented by an authorized full time paid employee.

6. How do you file a claim?

   1. Fill up Form 198 and the form shall contain the plaintiff’s and defendant’s details, amount and particulars of your claim.
   2. Sign on the form and submit to the Registry together with the requisite amount.
   3. Extract the sealed copy of Form 198 and serve it on the defendant by personal service or by prepaid registered post addressed to the last known address of the defendant

7. What happen in court?

   1. The defendant who has been duly served with Form 198 can dispute the claim by delivering his defence (and counterclaim, if any) in Form 199 within fourteen (14) days from the receipt of the claim.
   2. If there is a counterclaim, the plaintiff may file a defence to such counterclaim in Form 200.
   3. Subsequently, the Magistrate will make a decision based on the facts, evidence and submissions.

8. What happen if the defendant is absent in Court?

   If the defendant is absent, the plaintiff can enter a judgment against the defendant and the judgment shall be in Form 202.If the defendant does not file his defence, the Magistrate may give judgment in Form 201 for the plaintiff on the hearing date or may in its discretion adjourn the hearing to enable the defendant to file his defence.

9. Can I ask for costs?

   Yes, costs not exceeding RM100.00 will be awarded to the wining party in the Court’s discretion.

10. Can I appeal against the decision?

    Generally the losing party cannot appeal against the decision except on a question of law.

This article is written by 

Derek Chin Tze Qi
Associate, Low & Partners