Chamber’s Suspension is Unlawful

The Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) has to reinstate the membership of the Perak Indian Chamber of Commerce (PICC) which was suspended since November last year.

This is in line with the judgment by the Ipoh High Court on Tuesday, May 2 to rescind MAICCI’s decision on suspending PICC’s membership.

Judge Dato’ Ruzimah Ghazali, in a judicial review, said that MAICCI had breached Section 9 of the Societies Act 1966. She said that the defendant did not comply with procedural fairness, as the suspension was against the MAICCI’s Constitution and was thus void.

The High Court ordered the plaintiff’s membership be reinstated without prejudice to its rights.

According to PICC legal advisor, M. Mathialagan, PICC had sought a judgement over the suspension, as it was ultra vires (beyond the power).

“MAICCI has to reinstate our membership, as the suspension is wrongful. Their action is contrary to the Association’s Constitution. That’s our argument and the court ruled in our favour. The high court ordered MAICCI to pay us RM10,000 as cost,” he told reporters at a press conference on Friday, May 5.

The MAICCI’s constitution touches on expulsion of members but not suspension.

“It’s a breach of natural justice and the court concurs,” said PICC president, K. Seven Munusamy.

The legal suit was initiated by PICC when it was ordered by MAICCI to give the RM120,000 allocation by the state government to the association.

Nabilah Hamudin

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