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2023 MarsdenLR 1152

HIGH COURT MALAYA SHAH ALAM
CENTURY DISCOVERY SDN BHD & ORS – Appellant
Versus
NBL LAND DEVELOPMENT SDN BHD – Respondent
[Civil Suit No: BA-22NCvC-483-11/2020]



Petitioner Advocates:Lim Sze Huei ,Respondent Advocate: Susielan K Thambippillay

A default judgment can be set aside if it was irregularly obtained or if there is a triable defense, with statutory provisions governing the appeal process.

Headnote:(A) Courts of Judicature Act, 1964 - Section 68 - Courts of Judicature (Amendment) Act 2022 - Setting aside of default judgment - A judgment in default can be set aside as of right if irregularly obtained, or where a triable defense on merits is shown - Defendant's Liquidator provided satisfactory reasons for delay, and evidence of triable defenses was presented - Plaintiff's appeal against the decision to set aside the judgment was found to be incompetent due to statutory provisions. (Paras 1, 2, 3, 4, 5, 6, 7)

Facts of the case:
The Defendant's Liquidator applied to set aside a default judgment obtained by the Plaintiff, citing satisfactory reasons for the delay and presenting evidence of triable defenses, including lack of cooperation from the Plaintiff.

Findings of Court:
The default judgment was set aside based on the Defendant's demonstration of a triable defense on merits, and the appeal by the Plaintiff was deemed incompetent due to statutory limitations.

Issues: Whether the default judgment was irregularly obtained and if the Defendant demonstrated a triable defense on merits. The competence of the Plaintiff's appeal was also questioned.

Ratio Decidendi: The court ruled that a judgment in default can be set aside if it was irregularly obtained or if a triable defense is shown, emphasizing the importance of statutory provisions governing appeals.

Result: Appeal deemed incompetent.

Table of Content
1. setting aside default judgment conditions (Para 1 , 2 , 3)
2. amendments to appeal provisions (Para 4 , 5 , 6)
3. competence of appeal and judgment grounds (Para 7)
JUDGMENT

(Setting Aside Default Judgment)

Tee Geok Hock J:

Introduction

[1] On 23 June 2023, this Court allowed the Defendant's Liquidator's application in encl 7 and set aside the judgment in default of appearance which was obtained by the Plaintiff against the Defendant on 11 December 2020.

[2] When delivering the said decision dated 23 June 2023 this Court also stated that among others the summarised reasons for the decision to set aside the default judgment included (but are not limited to) the following:

(1) ''It is settled law that a judgment in default can be set aside as of right ex debito justitiae, irrespective of merits, if it was irregularly obtained and that a judgment in default which was regularly obtained can be set aside where a triable defence on merits is shown.

(2) In the present case, the Defendant has given satisfactory reasons and justification for the length of time the Defendant's Liquidator has taken to investigate and gather evidence on the matter and to prepare and file the application for setting aside the default judgment.

(3) Moreover, the Defendant's Liquidator has produced much evidence which shows that the delay or length of time taken was partly contributed by the Plaintiffs' lack of cooperation in providing documents.

(4) In the circumstances, the Defendant's Liquidator has also produced documentary evidence, including that of the Plaintiffs' ex-employees and that of the purchasers of the Defendant's property units, which raise serious triable defences to the Plaintiffs' claims in the action.

(5) In the premises, the judgment in default of defence should be set aside on the ground that the Defendant has shown a triable defence on merits."

[3] Dissatisfied with the decision to set aside the default judgment, the Plaintiff has filed a Notice of Appeal purporting to appeal against the said decision.

Preliminary Question On Competence Of The Appeal

[4] Prior to the 2022 amendment, the original s 68 of the Courts of Judicature Act 1964 provides as follows:

"Non-appealable matters

68. (1) No appeal shall be brought to the Court of Appeal in any of the following cases:

(a) When the amount or value of the subject-matter of the claim (exclusive of interest) is less than two hundred and fifty thousand ringgit, except with the leave of the Court of Appeal;

(b) Where the judgment or order is made by consent of parties;

(c) Where the judgment or order relates to costs only which by law are left to the discretion of the Court, except with the leave of the Court of Appeal; and

(d) Where, by any written law for the time being in force, the judgment or order of the High Court, is expressly declared to be final."

[5] Section 8 of the Courts of Judicature (Amendment) Act 2022 , which came into force in September 2022, provides as follows:

"Amendment of s 68

8. Subsection 68(1) of the principal Act is amended:

(a) In paragraph (c), by deleting the word "and" at the end of the paragraph;

(b) In paragraph (d), by substituting for the full stop at the end of the paragraph a semicolon; and

(c) By inserting after paragraph (d) the following paragraphs:

"(e) Where a High Court dismissed any application for a summary judgment;

(f) Where a High Court dismissed any application to strike out any writ or pleading; and

(g) Where a High Court allowed any application to set aside a judgment in default.".

[6] As from the date of coming into force of the Courts of Judicature (Amendment) Act 2022 , the amended provisions of s 68 of the Courts of Judicature Act 1964 now reads as follows:

"Non-appealable matters

68. (1) No appeal shall be brought to the Court of Appeal in any of the following cases:

(a) When the amount or value of the subject-matter of the claim (exclusive of interest) is less than two hundred and fifty thousand ringgit, except with the leave of the Court of Appea

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