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2020 MarsdenLR 1918

HIGH COURT MALAYA JOHOR BAHRU
NURUL AZWA SARUYANI – Appellant
Versus
LIFOMAX WOODBUILD SDN BHD (ENCL 1) – Respondent
[Civil Suit No: JA-12ANCC-9-08/2019]



Petitioner Advocates:Zaimil Hasra ,Respondent Advocate: San Peggy,Andrian Ng

A default judgment is irregular if entered against a party not involved in the transaction, necessitating its set aside to allow for a full trial on merits.

Headnote:(A) Rules of 2012 – Order 42 r 13, Order 19 r 9, Order 13 r 8 – Appeal against a Judgment-in-default – The judgment was set aside as it was irregularly obtained, with the appellant not being the correct party to be sued. The court found that all dealings were with a subcontractor and not with the appellant, warranting a reassessment of the case to allow a full trial. (Paras 60, 63)

(B) Judgment-in-default – The court established that a defendant’s application to set aside a judgment requires the endorsement that the judgment was either regular or irregular and if irregular, it should be set aside ex debito justitiae. (Paras 5, 9)

Facts of the case: The appellant contested a judgment entered against it for unpaid invoices related to construction materials. The invoices were issued to a subcontractor, highlighting potential merit in the appellant's defense. There were questions about the particulars of the contract and transaction. (Paras 16-20)

Findings of Court: The court found the judgment-in-default was irregularly obtained as the appellant was not the correct party to the claims, leading to sufficient grounds for an appeal. (Paras 49, 63)

Issues: The court considered whether the default judgment was regular, whether it could set aside the perfected judgment, and if the defense had merit. (Paras 33, 34)

Ratio Decidendi: The court ruled that a judgment cannot be deemed regular if it involves a party who had no dealings in the transactions and thus set aside the judgment. (Paras 50, 62)

Result: Appeal allowed; decision of the Sessions Court set aside.

JUDGMENT

Awang Armadajaya Awang Mahmud JC:

Introduction

[1] This is an appeal against the decision of the Learned Sessions Court Judge is refusing to set aside a Judgment-in-default of appearance (Enclosure 1) given on 31 July 2019. The date of the Judgment in default was 5 April 2019.

[2] I wish to state clearly that these considerations is only for an appeal against the decision of the Learned Sessions Court Judge in refusing the Judgment-in-Default and should NOT be taken as being my assessment of the evidence and facts in a full trial.

The Cause Papers

[3] The cause papers in this appeal are as follows:-

(a) Writ of Summons and Statement of Claim both dated 13 March 2019 (hereinafter referred to as "Writ dan Statement of Claim");

(b) Affidavit of Service affirmed by Adrian Ng Chen Yip on 3 April 2019 (hereinafter referred to as "Affidavit of Service");

(c) Certificate of Non-Appearance dated 5 April 2019 (hereinafter referred to as "Certificate of Non-Appearance");

(d) Judgment in Default dated 5 April 2019 entered against the Defendant (hereinafter referred to as "Judgment in Default");

(e) Defendant's Sealed Notice of Application dated 13 May 2019 to set aside the Judgment in Default (hereinafter referred to as "Defendant's Application in encl 7");

(f) Defendant's Affidavit in Support affirmed by Nurul Azwa Binti Saruyani on 13 May 2019 (hereinafter referred to as "Defendant's AIS");

(g) Plaintiff's Affidavit in Reply affirmed by Mohd Faiz Bin Amran on 28 May 2019 (hereinafter referred to as "Plaintiff's AIR");

(h) Defendant's Affidavit in Reply affirmed by Nurul Azwa Binti Saruyani on 24 June 2019 (hereinafter referred to as "Defendant's AIS");

(i) Plaintiff's Written Submissions dated 10 July 2019 (hereinafter referred to as "Plaintiff's WS")

(j) Defendant's Written Submissions dated 8 July 2019 (hereinafter referred to as "Defendant's WS");

(k) Plaintiff's Written Submissions In Reply dated 17 July 2019 (hereinafter referred to as "Plaintiff's WSIR");

(l) Defendant's Written Submissions In Reply 16 July 2019 (hereinafter referred to as "Defendant's WSIR");

(m) Sealed Court Order dated 31 July 2019 dismissing the Defendant's Application in encl 7 (hereinafter referred to as "Court Order");

(n) Defendant's Sealed Notice of Appeal dated 8 August 2019 (hereinafter referred to as "Defendant's Notice of Appeal");

(o) Defendant's Record of Appeal (hereinafter referred to as "Defendant's ROA");

(p) The Learned Session Court's Judge, Tuan Mohamad Haldar bin Abdul Aziz's grounds of decision dated 15 September 2019 (hereinafter referred to as "Grounds of Decision"); and

(q) Defendant's Supplementary Record of Appeal (hereinafter referred to as "Defendant's SROA")

The Law In Respect Of Setting Aside A Default Judgment

[4] Provisions:-

a) Order 42 r 13 Rules of 2012

b) Order 19 r 9 Rules of 2012

c) Order 13 r 8 Rules of 2012

[5] When considering such application, first identify whether the judgment in default is a regular or irregular judgment. It is well settled that if the judgment is irregular it will be set aside ex debitio justitiae.

[6] Default judgment:-

Where a judgment is entered because of failure of the Defendant to take any of the procedural steps provided by the Rules:-

a) Default of appearance

b) Default of defence

[7] The Court has absolute discretion to set aside the judgment on the application of the defendant.

[Tetuan Tan Teng Siah Realty Sdn Bhd v. Island Oil Palm Plantations Sdn Bhd & Anor, 1997 MarsdenLR 1657 .]

[8] The principal governing the exercise of discretion is "that unless and until the Court has pronounced a judgment upon merits or by consent, it is to have the power to revoke the expression of its coercive powers, where that has been obtained by a failure to follow any of the rules of procedures". [Evan v. Bartlam [1937] AC 473, 480 per Lord Atkin.]

[9] Principals on the exercise of discretion:-

1

a) When it is clearly demonstrated to the satisfaction of the Court that a judgment has not been regularly obtained, the defendant is en


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