2015 MarsdenLR 1417
HIGH COURT MALAYA KUALA LUMPUR
GLOBAL UPLINE SDN BHD – Appellant
Versus
KERAJAAN MALAYSIA – Respondent
[Suit No: 21NCVC-257-12-2012]
A judgment debt against the Government cannot be suspended merely due to a pending appeal; credible reasons must be provided.
Headnote:Statute Analysis: The Government Proceedings Act 1956, s 33(3) allows for suspension of judgment debts pending an appeal. Facts of the Case: The plaintiff appealed against a decision suspending a judgment debt since the defendant did not provide a basis for suspension.
Findings of Court:
The Deputy Registrar's suspension of the judgment debt was said not to be automatic and would require adequate reasons to be shown.
Issues: The main question framed was whether automatic suspension follows from merely having a pending appeal.
Ratio Decidendi: The court determined that the defendant must provide credible reasons or circumstances to warrant a suspension of the judgment debt.
Result: The grant of suspension of the judgment debt by the Deputy Registrar on 28 April 2015 was erroneous and is hereby set aside. An award of costs of RM1,000 is granted to the plaintiff for both applications.
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| 1. the court must assess the discretionary power to suspend a judgment debt against the government based on a submitted appeal. (Para 1 , 2 , 4 , 5 , 9) |
| 2. arguments made need to demonstrate credible reasons for the suspension of judgment debts, beyond the pending appeal. (Para 11 , 17 , 18 , 20 , 24) |
| 3. clear criteria are necessary for the court's exercise of discretion regarding suspending judgment debts. (Para 30 , 32 , 44 , 45) |
Introduction
[1] The issue that arises in this case is whether it is proper to suspend a judgment debt against the Government ("the defendant") under the proviso to s 33(3) of the Government Proceedings Act 1956 ("s 33(3) GPA ") purely because there is an appeal by the defendant which is pending or whether it is necessary for the defendant to show some reason or basis or circumstances to warrant the exercise of the statutory discretion under the proviso.
[2] Encl 61 is an appeal by the plaintiff against part of the decision of the learned Deputy Registrar given on 28 April 2015 in respect of the plaintiff's application (encl 55) whereby it was ordered that:
(a) payment of the judgment debt be suspended pending the disposal of the appeals to the Court of Appeal against the judgment of the High Court dated 9 December 2014; and
(b) there be no order as to costs in respect of encl 55.
[3] Encl 55 is the plaintiff's application for a certificate to be issued to the plaintiff under s 33 of the Government Proceedings Act 1956 (" GPA ") in respect of the judgment debt owed by the defendant pursuant to the judgment of the High Court dated 9 December 2014 ("the judgment" or "judgment debt").
[4] After considering submissions by both parties as to encl 55, the learned Deputy Registrar on 28 April 2015 allowed the issuance of the certificate with the direction that the payment of the judgment debt be suspended pending the disposal of the appeals to the Court of Appeal against the judgment and further ordered that there be no order as to costs in respect of encl 55.
[5] The judgment that was obtained by the plaintiff against the defendant on 9 December 2014 was for the sum of RM10,972,499.70 with interest at the rate of 5% per annum on the amount from 1 May 2009 until the date of full settlement and costs of RM15,000. The Court had also ordered interest on costs at the rate of 5% per annum from 9 December 2014 until the date of full settlement.
[6] The defendant has appealed to the Court of Appeal against the judgment whereas the plaintiff has appealed against that part of the decision of the High Court which refused to allow an aspect of the plaintiff's claim against the defendant.
[7] For present purposes it is unnecessary to examine the claim and the judgment and as to what is being appealed by the plaintiff and defendant respectively as this appeal relates solely to the decision of the Deputy Registrar dated 28 April 2015 whereby he had allowed the plaintiff's application (encl 55) for a certificate to be issued under s 33(3) GPA but had also proceeded to exercise his discretion under the proviso to s 33(3) and suspended the whole of the amount payable under the judgment pending disposal of the appeals to the Court of Appeal by both parties. The Deputy Registrar also made no order as to costs in respect of the plaintiff's application (encl 55).
[8] In this case, the defendant had not filed any affidavit in opposition to the plaintiff's application (encl 55). The Deputy Registrar had apparently entertained an oral application by the Senior Federal Counsel (who appeared on behalf of the defendant) for suspension of the judgment debt. There was therefore no evidence whatsoever before the learned Deputy Registrar pertaining to the application for suspension of the judgment debt.
[9] By this appeal (encl 61) the plaintiff seeks to reverse the relevant part of the decision of the Deputy Registrar dated 28 April 2015 and prays for an order that the suspension be set aside and for costs of encl 5