Funeral services firm wins legal battle against DBKL over licence revocation

KL Funeral Services triumphed in a legal dispute against Kuala Lumpur City Hall (DBKL) after a High Court ruling declared the council's actions in revoking the company's business licence as unfair. The company successfully challenged DBKL's decision to revoke the licence, effective from February 6, 2024, arguing that they were never informed of the revocation or given the chance to defend themselves.

Justice Alice Loke ruled that DBKL's decision was riddled with procedural impropriety and irrationality. The company was licensed to sell coffins and tombstones until December 10, 2024. Initially, DBKL issued a compound notice in December 2023, alleging the company lacked a licence, which was later canceled. On January 8, 2024, DBKL sent a show-cause letter alleging the company was conducting activities inconsistent with its licence.

KL Funeral Services responded with its licence, but on January 29, 2024, DBKL informed them their business licence would be revoked from February 6. DBKL claimed the company's licence for body-management activities had already been revoked on August 14, 2023. However, Loke pointed out that the company had never been notified of the earlier revocation.

DBKL had presented minutes from a meeting where the decision was allegedly made but failed to provide evidence that the revocation had been communicated to the company. Loke further noted that KL Funeral Services had not received a show-cause notice before the August 14 revocation. She concluded that if the company had been given a right to be heard regarding the alleged breach of its coffin and tombstone licence, there would have been no need to deny it the same opportunity before the earlier licence was revoked.

Loke granted the judicial review application, quashing DBKL's January 29 decision, but declined to award damages as the alleged losses had not been proven. DBKL was ordered to pay RM5,000 in costs. V Sivaparanjothi represented KL Funeral Services, while Zainol Aziz Mohamad represented DBKL.