Successful Termination of Security Guard Services and Recovery of Outstanding Service Fees in Bangi Court
Written on: 17 December 2025
Background of the Case
Our Client is a licensed security guard service provider offering both armed and unarmed security services to large corporations, commercial premises, and residential developments, including condominiums and gated communities.
Several years ago, at the request of a Condominium Joint Management Body (JMB), our Client agreed to provide round-the-clock security services by deploying:
- Two (2) security guards for each morning shift, and
- Two (2) security guards for each night shift
The security services were continuously rendered in accordance with the agreed terms.
JMB’s Default and Accumulation of Outstanding Charges
Despite the continuous provision of security guard services, the Condominium JMB persistently defaulted in payment over a prolonged period of three (3) years.
Although the JMB made sporadic part-payments, these payments were substantially below the actual accrued service charges and failed to reduce the outstanding balance in any meaningful manner.
As of October 2025, the total outstanding sum due and payable to our Client had accumulated to RM168,000.00.
At this stage, our Client engaged us, JY Ko Advocates & Solicitors for legal advice and recovery of the long-overdue security guard service fees.
Legal Advice on Proper Termination and Recovery Strategy
Upon reviewing the contractual arrangements and factual background, we advised our Client on:
- Proper termination procedures to avoid wrongful termination claims
- Preservation of evidence for unpaid security service fees
- Issuance of a formal Letter of Demand (LOD) to the JMB
- Legal remedies available under Malaysian law against a defaulting JMB
Our approach ensured that the termination of services was conducted lawfully, professionally, and defensibly, while simultaneously positioning our Client for a strong recovery claim.
Failure to Settle After Letter of Demand
Despite the issuance of a formal Letter of Demand, the Condominium JMB refused, failed, and/or neglected to settle the outstanding security guard service charges.
Given the continued non-payment and lack of reasonable response, our Client instructed us to commence legal proceedings.
Filing of Court Action at the Sessions Court
In October 2025, we filed a civil claim on behalf of our Client at the Bandar Baru Bangi Sessions Court, seeking recovery of the full outstanding sum of RM168,000.00 for unpaid security guard services.
Following the commencement of court proceedings:
- Multiple rounds of negotiations took place
- Legal pressure was applied through formal correspondence between solicitors
- The JMB obtained legal advice and reassessed its legal position
Full Settlement and Consent Judgment
In less than two (2) months from the filing of the claim, the Condominium JMB—upon advice from its solicitors—agreed to settle the total outstanding amount in full.
On 17 December 2025, a Consent Judgment was formally recorded before the Sessions Court Judge at Bandar Baru Bangi, with both parties represented by their respective lawyers.
This brought the dispute to a complete and satisfactory conclusion for our Client, ensuring full recovery of three years’ unpaid security guard service fees.
Highlights for Security Service Providers and JMBs
Our case highlights several important legal principles:
- Security service providers are entitled to full payment for services rendered
- JMBs cannot indefinitely delay or avoid payment through partial or sporadic payments
- Proper legal termination is crucial to avoid counterclaims
- Early legal intervention significantly improves recovery outcomes
Writer’s Note
Settlement is often the most practical, cost-effective, and commercially sensible outcome, particularly when it results in earlier payment and preserves ongoing professional relationships.
That said, a fair settlement requires reasonable compromise by both parties, guided by clear legal advice, to achieve a mutually acceptable resolution and finality to the dispute.
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Disclaimer: The above proposition is subject to actual facts and circumstances and shall never be referred as the actual law without seeking legal advice. Consult us for more information!