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2019 MarsdenLR 3956

HIGH COURT MALAYA JOHOR BAHRU
MAT SHAH SAFUAN – Appellant
Versus
PANG CHOW HUAT (ENCL 12) – Respondent
[Civil Suit No: JA-22NCVC-48-04/2018]



Petitioner Advocates:Marlysa Abdul Razak,Janessa Kok ,Respondent Advocate: G Ravi,Aida Hassan

The court will exercise caution in striking out claims, maintaining that if pleadings disclose some cause of action, they should not be summarily dismissed.

Headnote:The Court analyzed the application to strike out the Defendant's counterclaim based on O 18 r 19 of the Rules of Court 2012, highlighting issues of reasonable cause of action and abuse of process. The Plaintiff claimed the counterclaim was frivolous due to lack of proof regarding CTOS records and previous judgments. The Defendant argued the claims arose from wrongful entry of judgment affecting business prospects. The Court ultimately determined the counterclaim disclosed triable issues, leading to the dismissal of the Plaintiff's application to strike out.

Table of Content
1. application to strike out defendant's counterclaim. (Para 1 , 2)
2. background of the case including consent judgment details. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. plaintiff's claims stemming from the default judgment. (Para 10 , 12 , 14)

[1] This is an application by the Plaintiff by way of Notice of Application (Application) (encl 12) dated 28 August 2018 to strike out the Defendant's counterclaim pursuant to O 18 r 19(1)(a)(b) and / or (d) of the Rules of 2012 ( ROC 2012) for the following orders:

1.1 That the Defendant's Counterclaim ("Counterclaim") towards the Plaintiff dated 31 July 2018 to be strike out as it does not disclose a reasonable cause of action;

1.2 That the Counterclaim was frivolous, vexatious and / or with the intent to embarrass, delay and / or an abuse of the process of the Court;

1.3 The cost of the application to be borne by the Defendant; and

1.4 Any other relief and / or order that the Court deems fit.

[2] The relevant cause papers before this Court are:

2.1 the Writ of Summons and the Statement of Claim of the Plaintiff dated 6 April 2018;

2.2 the Statement of Defence and Counterclaim of the Defendant dated 31 July 2018;

2.3 the Reply to the Defence and the Reply to the Counterclaim by the Plaintiff dated 13 August 2018;

2.4 the Plaintiff's application to strike out the Defendant's Counterclaim dated 28 August 2018 (Enclosure 12);

2.5 the Plaintiff's Affidavit in support affirmed by Mat Shah Bin Safuan on 28 August 2018 (Enclosure 13);

2.6 the Defendant's Affidavit in Reply affirmed by Dato' Seri Pang Chow Huat on 14 September 2018 (Enclosure 18); and

2.7 the Plaintiff's Affidavit in Reply affirmed by Mat Shah Bin Safuan on 28 September 2018 (Enclosure 19).

Salient Facts

[3] On 26 December 2012, the Plaintiff and Syarikat Pembinaan Kota Laksamana (Melaka) Sdn Bhd filed a claim against Dato' Arunasalam, Ravichanthiran Ganesan and Solaris Estate Sdn Bhd in Kuala Lumpur High Court Civil Suit No:: 22NCVC-1501-12/2012 (Suit 2012).

[4] On 28 March 2013, the settlement agreement was executed between the Plaintiff, Ravichanthiran Ganesan and Solaris Estates Sdn Bhd wherein the parties has agreed to enter into a full and final settlement and to record consent judgment [see exhibit "TSMS-1"].

[5] On 22 April 2013, the parties recorded the consent judgment wherein the parties agreed that:

i) Defendan Ketiga (Solaris Estates Sdn Bhd) hendaklah membayar wang berjumlah RM2,950,000-00 (Ringgit Malaysia Dua Juta Sembilan Ratus Lima Puluh Ribu) tersebut kepada Plaintif Pertama (Mat Shah Bin Safuan) melalui cek atau pindahan telegrafik (Telegraphic Transfer) pada atau sebelum 31 Disember 2013;

ii) Sekiranya:

(a) Defendan Ketiga (Solaris Estates Sdn Bhd) ingkar dan / atau gagal membayar Plaintif Pertama jumlah wang RM2,950,000-00 (Ringgit Malaysia Dua Juta Sembilan Ratus Lima Puluh Ribu) tersebut; dan / atau

(b) Defendan Kedua (Ravichanthiran Ganesan) dan / atau Defendan Ketiga (Solaris Estates Sdn Bhd) ingkar dan / atau gagal mematuhi mana-mana terma atau syarat Penghakiman Persetujuan ini, maka keseluruhan jumlah wang seperti dituntut oleh Plaintif-Plaintif di dalam Saman dan Pernyataan Tuntutan tindakan ini atau mana-mana bahagian daripadanya yang masih terhutang dan kena bayar pada ketika itu perlu dibayar oleh Defendan-Defendan kepada Plaintif-Plaintif dengan serta merta bersama dengan faedah pada kadar 5% setahun bersama dengan kos.

[6] On 6 February 2014, the Defendant signed the Letter of Guarantee (Personal Guarantee) with the Plaintiff and agreed to pay the Judgment Sum of RM2,950,000-00 pursuant to the Consent Judgment entered between Dato' Arunasalam, the Plaintiff (Dato' Mat Shah Safuan) and Ravichanthiran Ganesan [see exhibit "TSMS-2"].

[7] In gist, through the Letter of Guarantee, Defendant had agreed to guarantee the payment of the Judgment Sum on behalf of Ravichanthiran Ganesan and Solaris Estates Sdn Bhd.

[8] It was further agreed by the Plaintiff, the Defendant was to make the payment of the Judgment Sum by

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