Landlord Tenant Dispute Small Claims Court Malaysia 2026
Rental disputes between landlords and tenants—such as a landlord illegally withholding a tenant's RM3,500 security deposit after move-out, or a tenant skipping town leaving RM4,000 in unpaid rent and utility bills—occur frequently in Malaysia.
While hiring a civil litigation lawyer to file a formal lawsuit in the Sessions Court can cost RM5,000 to RM10,000 in legal fees (far exceeding small tenancy claims), Malaysian law provides a fast, affordable legal remedy: Small Claims Court (Mahkamah Tuntutan Kecil).
Governed by Order 93 of the Rules of Court 2012, the Small Claims Court allows individuals to recover monetary claims up to RM5,000 for a nominal filing fee of RM20, with a strict legal prohibition against hiring lawyers.
This guide applies the SuperHomes Living & Renovation Design Framework to detail Small Claims Court eligibility, Form 198 filing procedures, court hearing rules, and judgment enforcement.
At a Glance: Small Claims Court Tenancy Dispute Matrix (2026)
| Parameter / Metric | Small Claims Court (Mahkamah Tuntutan Kecil) | Standard Sessions Court Lawsuit |
|---|---|---|
| Max Monetary Claim Limit | RM5,000 Maximum | Unlimited (Claims above RM5,000) |
| Lawyer Representation | STRICTLY PROHIBITED (Must represent yourself) | Mandatory / Highly Recommended |
| Court Filing Fee | RM20 Flat Fee (Form 198) | RM300 – RM1,000 + Legal Retainers |
| Average Timeline to Trial | 1 to 2 Months from filing date | 6 to 18 Months |
| Eligible Disputes | Withheld security deposits, unpaid rent, property damage | Eviction orders, complex breach of contract |
| Hearing Atmosphere | Informal, fast-track before a Magistrate | Formal courtroom trial |
1. Small Claims Court Claim Eligibility Formula
Before filing your claim at the local Magistrates' Court registry (Pejabat Pendaftaran Mahkamah Majistret), ensure your claim satisfies three criteria:
$$\text{Claim Basis} = \text{Unpaid Rent} + \text{Unpaid Utility Bills} + \text{Cost of Tenant Property Damage}$$
$$\mathbf{\text{Total Claim Sum (RM)} \le \text{RM5,000}}$$
Example Scenarios
- Tenant Claiming Deposit: Landlord fails to return 2-month security deposit of RM3,600 despite the property being handed over in pristine condition. (Eligible: RM3,600 $\le$ RM5,000).
- Landlord Claiming Rent & Damage: Tenant vacates early, owing RM2,500 in rent and leaving RM1,800 in broken furniture damage. (Eligible: $\text{RM2,500} + \text{RM1,800} = \text{RM4,300} \le \text{RM5,000}$).
2. Step-by-Step Filing Procedure (Form 198 to Judgment)
- Obtain and Complete Form 198 (Borang 198): Visit the local Magistrates' Court registry or download Form 198. State your details (Plaintiff), defendant details, exact claim amount, and concise facts of the tenancy breach.
- File and Pay RM20 Fee: File 4 copies at the court registry and pay the RM20 registration fee. The court clerk stamps the form with a formal case number and trial date.
- Personal Service of Form 198: Serve a registered copy of Form 198 to the defendant via registered post or personal delivery.
- Defendant's Defense (Form 199): The defendant has 14 days to file a defense or counterclaim using Form 199.
- Trial Hearing Before Magistrate: Both parties appear in person before the Magistrate. Present original evidence (stamped Tenancy Agreement, WhatsApp messages, bank transfer receipts, move-out inspection photos, repair invoices).
3. Enforcing a Small Claims Judgment
If the Magistrate rules in your favor and orders the defendant to pay, but the defendant refuses to comply:
- Garnishee Proceedings (Prosiding Garnisi): Apply to court to freeze the defendant's bank account and transfer owed funds directly to you.
- Writ of Seizure and Sale: Court bailiffs seize and auction the defendant's movable assets to satisfy the judgment sum.
[!WARNING] Tenancy Agreement Must Be Stamped The Magistrates' Court requires the underlying Tenancy Agreement to be officially stamped by LHDN (Duti Setem). Unstamped tenancy agreements must be stamped with LHDN late penalties before being admitted as court evidence.
Frequently Asked Questions (FAQ)
1. Can a company (e.g. Sdn Bhd landlord) file a claim in Small Claims Court? No. Order 93 restricts Small Claims Court plaintiffs to natural individuals only. Corporations cannot file as plaintiffs, but individuals CAN sue a corporate landlord.
2. What happens if the defendant fails to show up on the court trial date? If the defendant fails to attend after being properly served, the Magistrate will issue a Judgment in Default (Penghakiman Ingkar) in favor of the plaintiff immediately.
3. Can I claim RM7,000 in Small Claims Court if I abandon RM2,000? Yes. You can voluntarily reduce or abandon the excess portion of your claim (e.g. reducing a RM6,500 claim down to RM5,000) to fit within the Small Claims Court RM5,000 threshold.
Related Resources
- Eviction Guide: Read our How to Evict Non-Paying Tenants Malaysia Guide.
- Landlord Rights: Explore Landlord Rights & Legal Obligations Malaysia.
- Tenancy Agreement: Learn about Tenancy Agreement Stamping & Costs.
