8th Session in the DR Evening Talk Series
On 28 August 2025, the Dispute Resolution (DR) Practice Group held its 8th session in the DR Evening Talk Series 2025, featuring an insightful talk titled “Does Illegality of a Contract Prevent a Court Awarding Restitution for Unjust Enrichment of a Party”, presented by our DR Partner, Rabindra S. Nathan.
Rabindra S. Nathan regularly represents financial institutions in high-stake and complex restructuring and recovery actions. He is a member of the ICC Panel of Arbitrators (Malaysia) and has provided expert testimony on Malaysian law in both domestic and international forums.
The session began with an engaging quiz conducted by Rabindra S. Nathan, setting the tone for an interactive and enriching discussion. He then guided participants through a deep dive into the interplay between illegality and restitution for unjust enrichment in contract law, exploring relevant case law from various jurisdictions and their historical development to provide a comprehensive understanding of the current legal position. Rabindra S. Nathan highlighted the departure from the English law position in Tinsley v Milligan 1 AC 340 to a more balanced and flexible approach in Patel v Mirza UKSC 42. In Malaysia, the prevailing test aligns with the trio of considerations advocated in RPatel v Mirza. However, the recent Federal Court decision in Detik Ria Sdn Bhd v Prudential Corp Holdings Ltd & Anor 3 MLJ 22, had then signalled a move towards a more structured analysis when dealing with restitution claims affected by illegality.
Rabindra S. Nathan also addressed the Singapore position as per the Court of Appeal case in Ochroid Trading Ltd v Chua Siok Lui [2018] SGCA 5. From the moneylending perspective, the talk emphasized the “triple zest” line of authorities, highlighting the nuanced position where statutory non-compliance does not necessarily bar restitution claims outright.
Rabindra S. Nathan’s presentation notably emphasized the practical intersection of illegality with insolvency and banking law, illustrating challenges faced in financial restructurings, recovery actions, and claims involving void or illegal loans.
Stay tuned for more exciting sessions in the DR Evening Talk Series!
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