My Signature Was Forged! What Can I Do? - Malaysia

Sree was served a summons last week for defaulting on a contractual obligation. Confused about the entire ordeal, she requested for a copy of the contract from the Plaintiff’s solicitors. As she was looking through the documents, she realized that the signing column on the contract has been forged with her signature and initials.

What can she do?

Forgery

Forgery is closely related to fraud as it is classified as a type of fraud under Section 17 of the Contract Act 1950.

Section 17(d) of the Act provides that fraud includes any other act to deceive the other party into entering into an agreement. Forgery and falsification of documents are methods used by a person to commit fraud.

Some other fraudulent activities include crimes such as theft, corruption, conspiracy, money laundering, bribery and extortion. These acts would eventually cause one party to benefit and another party to suffer loss due to the fraud.

It is also a criminal offence where Section 463 of the Penal Code provides that

“Whoever makes any false document or part of a document with intent to cause damage or injury to the public or to any person, or to support any claim or title, or to cause any person to part with property, or to enter into any express or implied contract, or with intent to commit fraud or that fraud may be committed, commits forgery.”

In short, a forged document is a document which is falsified or counterfeit partly or wholly to make it appear genuine. This is shown under Section 470 of the Penal Code. One important element to be fulfilled under forgery is the acts were done with the intention to injure or defraud others. It is an offence which carries both criminal penalties and civil liabilities.

What Should You Do?

The first step to be taken when a person realizes that they are a victim of forgery is to launch a police report. The existence of a police report is one of the crucial factors in which the Court will look at in deciding the issue of Forgery.

In KULAI EDIBLE OILS REFINERY SDN BHD & ANOR V. LIM TIAN HUAT [2010] 1 LNS 712 (HC), the Court held that:

“to allege forgery is to make a serious allegation. Forgery is a serious crime under the Penal Code. Yet the second plaintiff did not see it necessary for it to make a police report against, the second defendant, if he genuinely believe as a forgery has taken place (see Cheong Cheng Onn v. K & N Kenanga Bhd [2010] 10 CLJ 78; [2010] 1 LNS 224).”

The Court will usually interpret the non-existence of a police report as the defendant being dishonest or as having an invalid defence. In CS PETROLEUM (M) SDN BHD V. PUBLIC BANK BERHAD [2011] 1 LNS 1349 (HC), the court held:

“There was no explanation for the late reporting despite the seriousness of the situation or for the failure of PW1 himself to lodge the report. It went to show that PW1 was not confident with the allegation of forgery and presumably, did not wish to take the risk of lodging a false report and face the consequences. If the allegation was true, P would surely want the matter investigated urgently and action promptly taken as the losses were huge.”

Effect of Forgery

Fraud and forgery are inter-related. The effect of forging one’s signature on a contract will render it null and void because forgery involves an element of fraud. This means that in the court of law, it is as though the contract did not happen. The aggrieved party can then claim for any losses or damages suffered by as a result of this contract.

Similarly, in a criminal proceeding, Section 465 of the Penal Code states the effect of forgery:

“Whoever commits forgery shall be punished with imprisonment for a term which may extend to two years or with fine or with both”.

However, the effect of forgery varies depending on the document forged. Some of the punishment prescribed is harsher than the punishment provided under section 465. For example, section 466 provides that whoever forges a document, purporting to be a record or proceeding of or before a Court, or a Register of Birth, Baptism, Marriage or Burial, or a Register kept by a public servant as such, or a certificate or document, purporting to be made by a public servant in his official capacity, or an authority to institute or defend a suit or to take any proceedings therein, or to confess judgment, or a power of attorney, shall be punished with imprisonment for a term which may extend to seven years, and shall also be liable to fine.

Conclusion

Sree must therefore launch a police report as soon as she realize that her signature was forged.

She should also engage a lawyer who can assist in bringing the matter to the court to challenge the validity of the contract and if so, the contract will then be treated as null and void.