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2024 MarsdenLR 2302

HIGH COURT MALAYA KUALA LUMPUR
CJ POLYMERS SDN BHD – Appellant
Versus
KERK HAN MENG & ANOR – Respondent
[Suit No: WA-22NCC-786-10/2023]



Petitioner Advocates:Dato' K Kiruba Karan T Karthigasu,John Wong Yok Hon,Chong Kah Yee ,Respondent Advocate: Dato' Shamesh Jeevaretnam,Kumarappan Ramasamy,Siow Pey Yiaw

The High Court lacks jurisdiction to transfer suits within the same division and consolidation is inappropriate when actions are distinct and do not save time or costs.

Headnote:(A) Companies Act 1965 – Section 181 – Jurisdiction of High Court – Application for transfer and consolidation of suits – The court dismissed the application as an abuse of process, finding no jurisdiction to transfer suits within the same division of the High Court – The nature of the actions was distinct, and consolidation would not save time or costs. (Paras 14, 15, 36, 41)

(B) Jurisdiction – The court held that it cannot give directions to another High Court regarding future conduct of cases – The application lacked bona fide and was deemed a tactical maneuver. (Paras 18, 20, 34)

Facts of the case: The plaintiff sought to transfer and consolidate two actions involving allegations of oppression and breach of fiduciary duties against the defendants, but the court found the applications to be tactical and without merit.

Findings of Court: The application for transfer and consolidation was dismissed, with costs awarded to the defendants.

Issues: The main issues included the jurisdiction of the court to transfer suits within the same division and whether consolidation was appropriate given the distinct nature of the actions.

Ratio Decidendi: The court ruled that the application was an abuse of process, lacking bona fide, and that the nature of the actions was distinct, thus consolidation was not warranted.

Result: Application dismissed with costs.

JUDGMENT

Ong Chee Kwan J:

Introduction

[1] Enclosure 33 is the Plaintiff's ("CJ Polymers") application seeking the following prayers:

a) that this present suit WA-22NCC-786 -10/2023 ("Suit 786") be transferred to the Kuala Lumpur High Court, NCC2 hearing the Originating Summons No.: WA-24NCC-547-10/2023 ("OS 547") and an order that OS 547 be tried and or heard after this present suit or in a manner to be decided by the Kuala Lumpur High Court, NCC2 trying or hearing OS 547 ("the Transfer Order");

b) alternatively, that Suit 786 be transferred and consolidated with the OS 547 ("the Transfer and Consolidation Order");

c) that consequential to prayer (2) above and or upon the Transfer and Consolidation Order in prayer (2) above being made, this present suit be transferred to the Kuala Lumpur High Court, NCC2 hearing OS 547.

[2] After perusal of the written submissions filed by counsel and upon hearing oral submissions from counsel, I dismissed encl 33 with costs.

[3] In essence, I found that the application is an abuse of the Court process being a mere tactical manoeuvre and further that this is not a case where there will be a saving of costs and time to justify an order to consolidate the Suit 768 with the OS 547, which are different in nature.

Background Facts

[4] OS 547 was filed on 5 October 2023 and Suit 786 was filed on 27 October 2023.

[5] The current parties in OS 547 and Suit 786 are as follows:

[6] OS 547 is an oppressive action filed by Kerk, the 1st Defendant herein, premised upon his alleged unlawful removal from the management of CJ Polymers and the unlawful appointment of Wong as a director of CJ Polymers vide the purported allotment of shares to Wong sometime in 2023. The effect of the aforesaid was that Kerk's management of the Company has been taken over by Ainsley, Eric and Wong ("the alleged Unlawful Takeover").

[7] Suit 786, on the other hand, is an action by CJ Polymers against Kerk and Sim who is the 2nd Defendant herein for alleged breach of their duties to CJ Polymers and or for alleged fraud, dishonesty and or misappropriation causing losses to the Company.

[8] The reliefs sought by the parties in OS 547 and Suit 786 are as follows:

OS 547

SUIT 786

The relief sought include, inter alia, the following

1. A declaration that Ainsley and Wong are conducting the affairs of the Company in a manner that is oppressive to and/or disregard of Kerk's interests as a member of the Company;

2. A declaration that Kerk's removal as a director of the Company is unlawful;

3. A declaration that cl 72(h) of Table A, 4th Schedule, Companies Act 1965 is inapplicable as against Kerk;

4. A declaration that the appointment of Wong as a director of the Company is unlawful;

5. A declaration that the allotment of 26,000,000 shares in the Company to Wong is unlawful

6. An order that the Company take all necessary steps to give effect to the declarations above within 14 days from the date of the Order obtained;

7. Consequent to prayer 1:

(i) An order that Ainsley do sell all her shares in the Company, and Kerk and/or Eric do purchase and/or cause and procure the purchase of the same, at a fair value to be determined by the Court and/or an independent valuer;

(ii) An order that Ainsley be removed as a director of the Company and a bank signatory of all the bank accounts of the Company;

8. Alternatively, an order that the Company be wound up.

The relief sought include, inter alia, the following

1. A declaration that Kerk and Sim, in their capacity as directors and executive officers of the Company, have dishonestly and/ or fraudulently misappropriated the Misappropriated Sum from the Company thereby causing the Company to suffer losses;

2. A declaration that Kerk and Sim have acted in breach of their fiduciary duties to the Company in respect of the Sham Transactions concerning the Misappropriated Sum from the Company thereby causing losses to the Plaintiff:

3. Kerk and Sim do jointly and severally pay the Misappropriated Sum amounting to RM9,247,577.37 to the Co



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