A party seeking a stay of execution must demonstrate special circumstances; financial difficulties alone do not suffice, and a conditional stay may be granted to balance interests pending appeal.

Introduction

[1] This is the Defendant's application filed in the Writ Summons: 22C-8-04/2015 at encl 242 for a Stay of Execution of the enforcement of the Judgment dated 19 December 2022 pending the disposal of the Defendant's appeal at the Court of Appeal (the encl 242 Application).

[2] The Defendant and the Plaintiff had filed their respective Affidavits and Submissions and a hearing was held on 14 April 2023 before me. Upon hearing both parties, an oral decision was delivered by me on 18 April 2023 allowing a Conditional Stay of Execution of the enforcement of the Judgment.

[3] The Defendant being unsatisfied with my decision had filed a Notice of Appeal against part of my decision for which I now write the grounds of judgment.

Brief Background

[4] In February 2011, Alstom Services Sdn Bhd had appointed the Defendant to carry out works for the assembly and erection of a Boiler and associated works for the 1X1000MW Manjung 4 Coal Fired Power Plant at Stesen Janakuasa Sultan Axlan Shah (Manjung 4) in Perak (the Project).

[5] By a Supply/Sub-Contract Work Order dated 20 March 2013, the Defendant had appointed the Plaintiff to carry out scaffolding works at the Project. By a letter dated 26 April 2014, the Defendant terminated the Plaintiff's services.

[6] As at the date of its termination, the Plaintiff had carried out scaffolding works valued at RM 12,282,205.67 whereby the Defendant had paid RM4,057,210.99 only leaving a balance unpaid sum of RM8,222,464.69 as at 26 April 2014.

[7] In order to recover the outstanding sum, the Plaintiff filed an action via this Writ Summons and the decision of this Court was in favour of the Plaintiff. Upon the conclusion of the trial, the Court allowed the Plaintiff's claim in the sum of RM8,025,493.38 with interest at 5% per annum plus costs of RM500,000.00. As at 14 April 2023, the total Judgment Sum and payable was RM11,456,242.71 plus RM507,876.71 for costs.

The Defendant's Grounds Of Application For The Enclosure 242 Application

[8] The Defendant has appealed to the Court of Appeal on the judgment given by this Court (the said appeal) and as such this application for Stay of Execution of enforcement of the Judgment is pending the disposal of the said appeal. There are merits in the said appeal and as such this application is so to maintain the status quo of the parties in order to give effect to the Court of Appeal's decision should the appeal be allowed.

[9] The Defendant pleads the presence of special circumstances in making this application on the basis that currently the Plaintiff is financially unsound and since the Judgment Sum is a large amount ie as at 14 April 2023 amounting RM11,456,242.71 inclusive of interest and RM507,876.71 as costs, as such the Plaintiff does not have the financial capacity to repay the Judgment Sum should the said appeal be allowed. As such making the said appeal nugatory.

[10] It is also the Defendant's contention that a Stay of Execution of the enforcement of the Judgment is absolutely necessary for the Defendant as the Defendant's accounts have been frozen by the Plaintiff's action in obtaining a Garnishee Order. This has caused the Defendant to not be able to carry out its normal functions including not being able to pay out salaries to its employees. The Defendant will face great financial ruins if the Plaintiff commences execution proceedings i