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2023 MarsdenLR 1830

HIGH COURT MALAYA MUAR
POLYVIEW DEVELOPMENT SDN BHD – Appellant
Versus
LIM KWEE GEE & ORS – Respondent
[Civil Suit No: JB-22NCVC-14-03/2021]



Petitioner Advocates:Harvinder Singh Sidhu,Varuneth Visvanathan ,Respondent Advocate: Ng Chew Hor

Amendments to pleadings are permitted if made in good faith, do not cause injustice, and are filed before trial, with delay alone not constituting a valid ground for refusal.

Headnote:(A) Rules of Court 2012 - Order 20 r 5 - Amendment of pleadings - Plaintiff's application to amend was allowed subject to costs - Amendments must not cause injustice to opposing parties and should be bona fide - The Plaintiff seeks to clarify issues raised in the Defence without changing the cause of action. (Paras 1, 16, 18, 46)

(B) Delay in application - Delay alone is not sufficient ground for refusal of amendment if made before trial - The court found no gross and inordinate delay as the application was made 7½ months before trial. (Paras 26, 30)

(C) Bad faith - Allegations of bad faith must be substantiated; the court found no evidence of bad faith in the Plaintiff's application. (Paras 32, 36)

(D) Prejudice and costs - Defendants failed to demonstrate how they would be prejudiced by the amendments, and any inconvenience could be compensated by costs. (Paras 40, 42)

Facts of the case:
The Plaintiff seeks to recover four pieces of land previously registered in their name, now registered to the Defendants, alleging fraudulent transfers. The Defendants deny the allegations, claiming good faith in their acquisition. (Paras 5-14)

Findings of Court:
The Plaintiff's amendments were found to be bona fide, necessary for clarifying issues, and did not change the character of the suit. Costs of RM5,000.00 awarded to the Defendants. (Paras 46, 49)

Issues: Whether the amendments to the Plaintiff's Reply would cause injustice to the Defendants and if the application was made in bad faith. (Paras 16, 33)

Ratio Decidendi: The court emphasized that amendments should be allowed if they do not cause injustice and are made in good faith, reinforcing that delay alone is not a sufficient ground for refusal. (Paras 18, 30)

Result: Plaintiff's application allowed.

Table of Content
1. plaintiff's claim based on land ownership and fraud. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
2. defendants' denial of allegations and legal standards for amendments. (Para 15 , 16 , 17)
3. plaintiff's justification for amendments. (Para 20 , 21 , 22 , 23)
4. defendants' objections to the amendment application. (Para 24 , 25)
5. court's assessment of delay in amendment application. (Para 26 , 27 , 28 , 29 , 30)
6. court's finding on bad faith regarding the application. (Para 33 , 34 , 35 , 36)
7. court's view on prejudice and compensation. (Para 39 , 40 , 41 , 42)
8. final decision allowing plaintiff's application. (Para 46 , 47 , 48)
Suria Kumar Dj Paul JC:

Introduction

[1] Plaintiff applied to amend their Reply to the 2 nd to 7 th Defendants Defence pursuant to O 20 r 5 ROC 2012.

[2] The application was objected to by the 2nd to 7th Defendants ("the Defendants").

[3] Upon considering submissions and hearing arguments from both parties, I allowed Plaintiff's application subject to payment of cost in the sum of RM5,000.00 to the Defendants.

[4] I now give my reasons for allowing the Plaintiff's application. Background Facts

[5] The Plaintiff's claim against the Defendants is to recover four (4) pieces of land located at Mukim Simpang Kanan, Batu Pahat, Johor ("the Lands") which was originally registered in the Plaintiff's name.

[6] The Lands are currently registered in the 4th and 7th Defendants' name.

[7] The 2nd and 3 rd Defendants are the shareholders and directors of the 4th Defendant company.

[8] Whereas the 5th and 6 th Defendants are the shareholders and directors of the 7 th Defendant company.

[9] Plaintiff pleads that the 2nd, 3rd, 5th and 6th Defendants are the controlling mind and will of the 4th and 7th Defendants.

[10] The Lands were transferred to the 1st Defendants name and thereafter from the 1st Defendant to the 4 th and 7th Defendants.

[11] Plaintiff pleads that the transfers to the 4th and 7th Defendant are defeasible and liable to be set aside on the ground it was carried out using invalid, insufficient and/or void instruments.

[12] Hence the registered title and interest in the Lands were misappropriated through unlawful means without the knowledge, approval and/or authorization of the Plaintiff. The transactions are impugnable and liable to be set aside.

[13] Plaintiff further pleads it was at all material times the rightful proprietor and continues to be the rightful proprietor of the Lands.

[14] The Plaintiff's claim against the Defendants is premised on fraud and a conspiracy to defraud which led to the Plaintiff being deprived of the Lands. The Plaintiff now seeks to restore the title and interest in the Lands.

[15] The Defendants deny the Plaintiff's allegation and contend that the Lands were obtained with good intentions and for valuable considerations.

[16] The law on amendment of pleadings is trite. Amendments are generally allowed if it does not cause injustice to the opposing parties.

[17] The application for amendment in the present case was filed way before the trial dates fixed in March and May next year (2024).

[18] In this circumstance, the principles on amendment of pleadings decided by the Federal Court in Yamaha Motor Co Ltd v. Yamaha Malaysia Sdn Bhd & Ors [1982] 1 MLRA 417; 1983 MarsdenLR 38 ; [1983] CLJ (Rep) 428; [1983] 1 CLJ 191 is applicable. The Federal Court in Yamaha Motor held as follows:-

"general principle is that the Court will allow such amendments as will cause no injustice to the other parties. Three basic questions should be considered to determine whether injustice would or would not result, (1) whether the application is bona fide; (2) whether the prejudice caused to the other side can be compensated by costs and (3) whether the amendments would not in effect turn the suit from one character into a suit of another and inconsistent character."

[19] Learned counsel for the Defendants submitted that the Court has to apply the principles established by the Federal Court in

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