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2025 MarsdenLR 998

HIGH COURT MALAYA SHAH ALAM
BLACKSPACE SDN BHD – Appellant
Versus
MITCHELL WONG POU YEE & ORS (ENCL 23) – Respondent
[Suit No: BA-22NCvC-329-08/2024]



Petitioner Advocates:Jonathan Khaw Chern Wei ,Respondent Advocate: Sumathi Shanmugam

The failure to invoke the correct procedural rule undermines an application, and claims against defendants cannot be struck out if not plainly unsustainable.

Headnote:(A) Rules of Court, 2012 - Order 18 Rule 9(1)(a) - Order 15 Rule 6 - Application to remove defendants - Application dismissed due to procedural flaws and inordinate delay - Third and Fourth Defendants' claim of unsustainability rejected - Correct procedural avenue not followed by defendants. (Paras 1, 2, 15, 18)

Facts of the case:
The Third and Fourth Defendants sought to be removed from the Plaintiff's Writ and Statement of Claim, citing procedural grounds and claiming that the Plaintiff's action against them was unsustainable. However, the Plaintiff contended that the application was flawed and delayed. (Paras 1, 2, 10)

Findings of Court:
The Court found that the Third and Fourth Defendants had invoked the wrong procedural provision and that their application was inappropriate given the ongoing proceedings. The delay in filing the application was deemed tactical and prejudicial. (Paras 15, 16, 17)

Issues: The main issues included whether the application should be dismissed due to procedural flaws and whether the Plaintiff's claim against the Third and Fourth Defendants was unsustainable. (Paras 2, 18)

Ratio Decidendi: The Court ruled that a failure to invoke the correct procedural rule undermines the application, and the claim against the defendants was not unsustainable, thus the drastic remedy of striking out was not warranted. (Paras 15, 18)

Result: Application dismissed with costs of RM5,000.00 to be paid by the Third and Fourth Defendants to the Plaintiff.

JUDGMENT

Choong Yeow Choy JC:

Introduction

[1] This is an application in encl 23 by the Third and Fourth Defendants for them to be removed and/or not made parties in the Plaintiff's Writ and Statement of Claim dated 12 August 2024. However, the application was made pursuant to O 18 r 9(1)(a) - (d) of the Rules of Court, 2012.

The Vital Issues

[2] The vital twin issues in this application are first, whether encl 23 should be dismissed in limine due to serious procedural flaws and second, whether the Plaintiff's claim against the Third and Fourth Defendants is "plainly and obviously unsustainable", warranting the striking out of the Plaintiff's action.

The Respective Contentions

[3] The application by the Third and Fourth Defendants in encl 23 was premised on the following 8 grounds:

1. D3 dan D4 adalah rakan perkongsian dalam syarikat yang dikenali sebagai Space Creation Industries Sdn Bhd sejak tahun 2019 dan pernah menjadi sub-kontraktor kepada Plaintif.

2. Sebagai sub-kontractor yang dilantik oleh Plaintif, D3 dan D4 telah lama menjalankan perniagaan dalam bidang hiasan dalaman malah lebih lama daripada Plaintif dalam bidang tersebut. Seterusnya D3 menyatakan bahawa sebagai sub-kontraktor, D3 dan D4 telah lama "establish" dalam bidang tersebut.

3. D3 dan D4 juga banyak menjalankan kerja-kerja Plaintif sebagai sub-kontractor sejak 2021 termasuk kerja-kerja pertukangan, kerja-kerja pembahagian (partition works) dan pemasangan kabinet dan almari bagi projek Plaintif dan atau pelanggan-pelanggannya.

4. D3 dan D4 kemudianya telah menubuhkan syarikat INTERSPARK bersama-sama dangan D1 dan D2 pada 4 March 2024, oleh itu ia adalah suatu entiti yang berbeza dan tiada kaitan dengan Plaintif.

5. D3 dan D4 telah bergabung dengan Dl dan D2 menubuhkan syarikat INTERSPARK dan memulakan perniagaan mereka sendiri tanpa berkait langsung dengan Plaintif walaupun dalam satu jenis perniagaan yang sama tetapi dalam pasaran terbuka seperti lain-lain syarikat yang ada dalam pasaran.

6. Alasan Plaintif bahawa D3 dan D4 telah bergabung dengan DI dan D2 dengan memulakan perniagaan mereka telah mencederakan perniagaan Plaintif adalah suatu yang remeh, menyusahkan dan suatu penyalahan proses Mahkamah kerana jenis perniagaan yang dijalankan adalah dalam pasaran terbuka dan dibenarkan oleh undang-undang Malaysia malah tiada sebarang bukti Plaintif telah dicederakan atau mengalami kerugian yang teruk disebabkan D3 dan D4 menjalakan perniagaan mereka sendiri;

7. Alasan Plaintif D3 dan D4 telah menggunakan maklumat Sulit Plaintif semasa menjalankan perniagaan INTERSPARK adalah suatu yang remeh dan menyusahkan kerana perniagaan tersebut adalah suatu perniagaan dalam pasaran terbuka seperti yang dilakukan oleh Syarikat yang lain juga dan ianya bukan suatu jenis perniagaan yang dimonopoli oleh Syarikat Plaintif sahaja;

8. D3 dan D4 berhak untuk menubuhkan Syarikat mereka sendiri iaitu INTERSPARK dan menjalankan perniagaan yang sama jenis dengan perniagaan Plaintif. Oleh yang demikian tindakan Plaintif menyaman D3 dan D4 dan semua remedi yang dipohon adalah suatu yang tidak mendedahkan apa-apa kausa tindakan, remeh lagi menyusahkan dan atau adalah suatu penyalahan proses Mahkamah.

[4] The essence of the application can be distilled into the sole ground that there is no nexus between the Plaintiff on the one hand and the Third and Fourth Defendants on the other hand, as far as the Plaintiff's main action is concerned.

[5] In resisting the above application, the Plaintiff has raised a preliminary point, in that the Third and Fourth Defendants have relied on or invoked the wrong provision of the Rules of Court 2012. The Plaintiff contended that the correct provision is O 15 r 6 of the Rules of Court, 2012.

[6] In view of the above, and coupled with the "inappropriate relief" to have themselves removed as parties rather than to have the claim against them struck out, the Plaintiff submitted that encl 23 should be dismissed in limine.

[7] In support of the above contention, the Plaintif

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