Section 73 of the Contracts Act 1950 states that “a person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it”. The case originated from the Sessions Court where the Firm acted for Luno Pte Ltd and BitX Malaysia Sdn Bhd, the plaintiffs. Our clients filed an action against the defendant for the recovery of Bitcoins that were mistakenly transferred into the defendant’s Luno wallet. Briefly, the defendant contended that Bitcoins are not  a “thing” capable of being returned under Section 73 of the Contracts Act 1950. The Sessions Court allowed our clients’ claim and the defendant appealed to the High Court and subsequently to the Court of Appeal. 

Outcome

The defendant’s appeals to the High Court and Court of Appeal were dismissed. The crux of this dispute and appeals was whether Bitcoins fall within the ambit of the term “anything” under Section 73 of the Contracts Act 1950, thereby entitling our clients to the return of the mistakenly transferred Bitcoins. It was argued that “thing” or “commodity” must refer to something tangible and encompasses only goods or chattels. The High Court and the Court of Appeal recognised that Bitcoin falls within the definition of “thing” in Section 73 of the Contracts Act 1950.