The court affirmed that a stay of proceedings pending appeal can be granted when special circumstances justify preserving the subject matter while avoiding substantial prejudice to the defendants.

JUDGMENT

Mohd Radzi Harun J:

Background

[1] The reliefs prayed by the Plaintiffs in their Suit against the Defendants include-

(i) a Declaration of breach of fiduciary duties by D1 to P1, by D2 to P2, by D4 to P5, and by D5 to P5;

(ii) a Declaration that the Plaintiffs' Trade Secrets and Confidential Information are protected under the law of confidentiality and that the Defendants have misappropriated and unlawfully utilized and disclosed the Plaintiffs' Trade Secrets and Confidential Information to third parties to the detriments of the Plaintiffs and to the Defendants' benefits;

(iii) an Injunction to permanently restrain the Defendants from, among others, utilizing, divulging, disseminating, disclosing, misusing the Plaintiffs' Trade Secrets and Confidential Information; and

(iv) a Destruction Order of all physical items seised which are the results of, or had caused the breach of confidence through the dislosure, dissemination, divulging and misuing of the Plaintiffs' Trade Secrets and Confidential Information and for the delivery up of all the Plaintiffs' Trade Secrets and Confidential Information.

[2] On 5 August 2020, this Court had decided on the Plaintiffs' ex parte application in enclosure 7 ("5 August 2020 EPO'). Part A of the 5 August 2020 EPO was in effect a Protective Order (also referred to as "Protection Order" or "Sealing Order') to protect the Plaintiffs' Trade Secrets and Confidential Information. These Trade Secrets and Confidential Information include the Plaintiffs' application procedure for in-fill coating, the Plaintiffs' commercial and technical proposals, spreadsheet list of vendors, list of suppliers, track record, drawings, business development checklist, quality management system, resource checklist, project tracking and contractors' contact list. Part B of the 5 August 2020 EPO is an Anton Piller Order against the Defendants in respect of the items listed in the Second Schedule to the Plaintiffs' ex parte application. The 5 August 2020 EPO also provided for Interim Prohibitory Injunction to restrain the Defendants from, inter alia, utilizing and/or disseminating the Plaintiffs' Trade Secrets and Confidential Information, and parting, hiding, tampering, defacing the said items listed in the Second Schedule. The 5 August 2020 EPO further granted the Plaintiffs with other reliefs that include the manner of the service of the said 5 August 2020 EPO on the Defendants and the right for the Defendants to apply for the variation or discharge of the EPO with prior notice to the Plaintiffs' solicitors. On 25 August 2020 this Court granted an Ad Interim Order to extend the lifespan of the 5 August 2020 EPO.

[3] The Defendants subsequently filed applications as below:

(a) Enclosure 15: 1st, 2nd and 3rd Defendants' application dated 12 August 2020 to set aside paragraph A of the 5 August 2020 EPO;

(b) Enclosure 26: 1st, 2nd and 3rd Defendants' application dated 18 August 2020 to set aside paragraph B 10(ii) and 10(iii) of the 5 August 2020 EPO; and

(c) Enclosure 41 (as amended by Enclosure 80): the 1st, 2nd, 3rd, 4th, 5th Defendants' application dated 28 August 2020 to:

(i) dismiss the Plaintiffs' action pursuant to O 19 r 1 of the Rules of 2012 ("ROC 2012");

(ii) discharge the 5 August 2020 EPO and to discharge the Ad Interim Order dated 25 August 2020;

(iii) for a mandatory and perpetual injunction against the Search Party for destruction of all items seized pursuant to the Ex-Parte Order and the Ad Interim Order; and

(iv) Inquiry as to damages.

[4] On 20 October 2020 I had dismissed Enclosures 15 and 26, and I had allowed partially Enclosure 80. The Defendants had appealed against those decisions.

(Note: I had separately prepared my Grounds of Judgement for the Defendants' appeals against my decision on Enclosures 15, 26 and 80 which had been registered as:-

(i) Mahkamah Rayuan Sivil Rayuan No: W-02(IM)(IPCv)-1605-10/2020;

(ii) Mahkamah Rayuan Sivil Rayuan No: W-02(IM)(IPCv)-1606-10/2020;

(iii) Mahkamah Rayuan Sivil Rayuan No