Kenny and Don incorporated a company known as Kendon Sdn Bhd. Kendon Sdn Bhd obtained a franchise licence from Mayfair Sdn Bhd to open two fashion outlets in the Klang Valley. Business however suffered during the pandemic and the cash reserves of Kendon Sdn Bhd were severely diminished.

Kenny and Don, as a result, approached Mayfair Sdn Bhd for help with their business. Having decided to quit the business, Kenny and Don entered into an agreement with Mayfair Sdn Bhd on the following terms:

a. That Kenny and Don would transfer 90% of all their shares in Kendon Sdn Bhd to Mayfair Sdn Bhd at the nominal price of RM5/- per share.

b. That Mayfair Sdn Bhd would repay all personal loans totalling RM80,000/- that Kenny and Don had made to Kendon Sdn Bhd.

After having received the transfer of 90% of the shares in Kendon Shd Bhd, Mayfair Sdn Bhd refused to repay the personal loans to Kenny and Don. It disputes the quantum of the personal loans owing to Kenny and Don.

Answer the following:

i) Kenny and Don, unfortunately, had not documented their personal loan agreement in writing. However, their loans were recorded in the accounts of Kendon Sdn Bhd. The accounts were kept by the accounts executive, Jane. Jane, however, has since resigned and has emigrated to Canada.

Can the books of accounts be tendered in evidence?
ii) The original books of accounts were destroyed in an office fire five months ago.

QUESTION OF EVIDENCE ACT OF MALAYSIA