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2021 MarsdenLR 23

HIGH COURT MALAYA JOHOR BAHRU
INFRA JAGUH SDN BHD – Appellant
Versus
TAN YEE AN – Respondent
[Civil Appeal No: JA-12ANCVC-41-11/2020]



Petitioner Advocates:R Paramanandan ,Respondent Advocate: CH Lee

A single triable issue suffices to prevent summary judgment in applications where debts are in dispute, emphasizing the necessity for a complete assessment of facts in a legal context.

Headnote:(A) Companies Act 2016 – Section 465 – Application for summary judgment – Plaintiff's application for summary judgment dismissed on grounds of triable issues regarding alleged debt owed – Plaintiff admitted debt but contested amount claimed by Defendant – Court clarified requirements for summary judgment applications. (Paras 8, 10, 12, 17)

(B) Res Judicata – Doctrine not applicable as the Plaintiff had merely disputed the amount owed, not the validity of the debt itself. (Paras 11, 12)

(C) Abuse of Process – Essential elements of abuse of process outlined; however, triable issues remain. (Paras 14, 15)

Facts of the case: Plaintiff rented lorries and hired Defendant for transport of sand, resulting in an outstanding debt of MYR269,404. Following a winding-up petition filed by Defendant, allegations of malice and bad faith were raised by Plaintiff.

Findings of Court: Plaintiff's admission of debt confirmed presence of triable issues; appeal dismissed based on the merits of the case and absence of grounds for summary judgment.

Issues: Primarily whether the doctrine of res judicata applies and if summary judgment is appropriate given cited factors.

Ratio Decidendi: Court emphasized that even a single triable issue is sufficient to dismiss a summary judgment application, requiring the Defendant to prove bona fide defense.

Result: Appeal dismissed, with costs.

JUDGMENT

Evrol Mariette Peters JC:

Introduction

[1] This was the Appellant's appeal ("this Appeal") against the decision of the learned Sessions Court Judge ("SCJ") dated 17 November 2020, who dismissed the Appellant's application for a summary judgment against the Respondent underO 14 of the Rules of 2012 ("Rules of "). For ease of reference, the Appellant and Respondent will be referred to respectively as the Plaintiff and Defendant.

The Background Facts

[2] The Plaintiff had rented several lorries from the Defendant for a project, and also appointed the Defendant to transport sand for one of its earthwork projects. The Defendant issued invoices to the Plaintiff but the Plaintiff failed to settle the full amount, leaving an outstanding sum, which according to the Defendant amounted to MYR269,404.

[3] As a result thereof, the Defendant filed a winding-up petition ("the Winding-Up Petition") against the Plaintiff pursuant to s 465 of the Companies Act 2016 . Since there was a dispute as to what was actually owing to the Defendant, the Plaintiff applied to strike out the Winding-Up Petition, and was successful in doing so.

[4] Although the striking out application was allowed by the High Court ("the High Court decision") on the basis of abuse of process, no grounds of judgment were provided. The Plaintiff, nevertheless, filed a suit and subsequently an application in the Sessions Court against the Defendant for summary judgment for damages for the implications resulting from the filing of the Winding-Up Petition.

[5] The learned SCJ dismissed the application and as a result thereof, the Plaintiff appealed to this Court, which appeal was also dismissed for the following reasons.

The Applicable Law

[6] Since this was an appeal against the decision of the learned SCJ in dismissing the Plaintiff's application for summary judgment, it was imperative to refer to principles pertaining to the same. It is trite law, as stated in several cases including National Company For Foreign Trade v. Kayu Raya Sdn Bhd , 1984 MarsdenLR 58 , that the Court may order summary judgment in plain and obvious cases. The Plaintiff, therefore, needs to fulfill the following preliminary requirements:

a) the statement of claim must have been served on the Defendant;

b) the Defendant must have entered an appearance; and

c) the affidavit-in-support of the application must comply with the requirements of O 14 r 2 of the Rules of .

[7] These requirements were elaborated in the Federal Court case of Bank Negara Malaysia v. Mohd Ismail & Ors, 1992 MarsdenLR 798 , through Mohd Azmi FCJ, in the following passages:

In our view, basic to the application of all those legal propositions, is the requirement under O 14 for the to be satisfied on affidavit evidence that the defence not only has raised an issue but also that the said issue is triable. The determination of whether an issue is or is not triable must necessarily depend on the law arising from each case as disclosed in the affidavit evidence before the Court.

Under an O 14 application, the duty of a Judge does not end as soon as a fact is asserted by one party, and denied or disputed by the other on affidavit. Where such assertion, denial or dispute is equivocal, or lacking in precision or is inconsistent with undisputed contemporary documents or other statements by the same deponent or is inherently improbable in itself, then the Judge has a duty to reject such assertion or denial, thereby rendering the issue as not triable. In our opinion, unless this principle is adhered to, a Judge is in no position to exercise his discretion judicially under an O 14 application. Thus, apart from identifying the issues of fact or law, the Court must go one step further and determine whether they are triable. This principle is sometimes expressed by the statement that a complete defence need not be shown. The defence set up need only show that there is a triable issue.

[Emphasis Added]

[8] Once these considerations are satisfied, the Plain


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