The court has jurisdiction to consolidate and transfer cases within the same division to promote efficiency and justice, particularly when common questions of law or fact exist.

Introduction

[1] This decision arises from the Plaintiff's application to transfer proceedings initiated at Dagang 8 Court to NCC4 Court, both within the same division of the High Court of Malaya at Kuala Lumpur. The objective behind the transfer was to consolidate and enable the joint hearing of this suit alongside an earlier filed suit at the NCC4 Court.

[2] The issues for determination were with regards to the power and jurisdiction of a Court of co-ordinate jurisdiction to transfer a case from one Court to the other pursuant to O 57 of the Rules of Court 2012 ("the Rules") and s 25(2) of the Courts of Judicature Act 1964 ("CJA") ; and whether the Plaintiff's application for consolidation had complied with O 4, r 1 of the Rules.

[3] Defendants No 1, 2, 4, 5, 6, 7, 8, 9, 10 & 11 have raised objections to the Plaintiff's application and have filed the required affidavit in opposition (encl 76). It is important to note that Defendant No 3 passed away on 20 February 2021, subsequent to which an ex-parte order under O 15, r 7 of the Rules was obtained by the Plaintiff on 10 February 2023 to appoint Amanah Raya Berhad as representative of Defendant No 3's estate (encl 67). The Plaintiff's solicitors have informed this Court that Amanah Raya Berhad has been duly served with the aforementioned ex-parte order, and therefore would be bound by this decision.

Background

[4] The dispute between the Plaintiff and the Defendants arises out of an acquisition exercise in the aggregate value of RM320 million, part of which was to be settled by the issuance of Redeemable Convertible Preference Shares ("RCPS"). The following suits were thus filed at the commercial division of the High Court of Malaya at Kuala Lumpur:

a) on 17 June 2020, the 11th Defendant in the present suit initiated a legal action under Suit No WA-22NCC-244-06/2020 ("Suit 244") with the objective of declaring the RCPS issuance null and void. The grounds for this declaration were based on allegations of fraud, conspiracy, and the absence of a legitimate debt as consideration for the issuance of the RCPS. The Plaintiff counterclaimed for damages. Suit 244 underwent a full trial at NCC4 before Dato' Ahmad Fairuz Bin Zainol Abidin J. On 14 February 2023, the 11th Defendant's claim in Suit 244 was dismissed, with the High Court ordering them to pay costs amounting to RM100,000.00 to the Plaintiff. The counterclaim of the Plaintiff in Suit 244 was also dismissed. Presently, the 11th Defendant is in the process of appealing against the said High Court's judgment;

b) on 24 June 2020, the Plaintiff in the present suit initiated legal proceedings under Suit No WA-22NCC-262-06/2020 ("Suit 262") with the objective of obtaining specific performance of the RCPS. It is argued that the 11th Defendant's defense in Suit 262 mirrors their claim in Suit 244. As Suit 244 has already been concluded, Suit 262, which was temporarily stayed by consent of both parties, has been scheduled for full trial in March 2024 before the same Judge of NCC4. The Defendant in Suit 262 has filed for a stay of proceedings pending their appeal to the Court of Appeal regarding Suit 244; and

c) on 11 November 2020, the Plaintiff initiated legal proceedings under Suit No WA-22NCC-554-11/2020 ("Suit 554") against the Defendants herein. According to the pleadings, while both Suit 244 and Suit 262 were still pending, the 11th Defendant (along with other defendants named in the present suit) took steps on or about 22 June 2020, to issue and allot 216,446,000 shares in the 12th