The court emphasized that res judicata prevents relitigation of previously adjudicated matters, and judicial estoppel bars inconsistent claims in separate proceedings.

Introduction

[1] The Defendants filed a notice of application dated 24 July 2023 vide encl 41 to strike out the Plaintiffs' claim. Enclosure 41 is made under O 18 r 19(1)(b) or (d) of the Rules of Court 2012.

[2] On 30 October 2023. I allowed encl 41 and struck out the Plaintiffs' action against the Defendants. Here are the grounds of my decision.

The Relationship Between The Parties

[3] The directors and shareholders of the 1st Plaintiff ("P company") are (i) the 2nd Plaintiff ("P2"), (ii) the 3rd Plaintiff ("P3") and (iii) the 4lh Defendant ("D4").

[4] The 5th Defendant ("D5") is the sole director and shareholder of the 1st Defendant ("D company").

[5] The relationship of the Defendants are as follows:

(a) the 2nd Defendant ("Father") is the father of (i) D4, (ii) D5 and (iii) the 6th Defendant ("D6");

(b) the 3rd Defendant ("Mother") is the mother of (i) D4, (ii) D5 and (iii) D6;

(c) D4, D5 and D6 are siblings.

[6] The Father, the Mother and D6 are not directors or shareholders of P company or D company.

[7] In the instant suit, the Plaintiffs allege that the Defendants had established D company to undertake the hostile take - over of the restaurant business of P company.

The Earlier Suit

[8] On 9 March 2021, P company had initiated a civil suit against (i) D company, (ii) D4 and (iii) D5 vide Penang High Court Civil Suit No: PA- 22NCvC-46-03/2021 [[2023] MLRHU 1441] ("Earlier Suit").

[9] The Earlier Suit was disposed of via an Order of Court dated 2 March 2023 made by the Penang High Court.

[10] The Earlier Suit had sought for the following reliefs:

"(i) Deklarasi bahawa sebarang Perjanjian Jualbeli Perniagaan (Business Sale Agreement) antara Plaintiff dengan Xi Lin Ge Sdn Bhd (Defendan Kedua) [ie D company in the instant suit] ada lah tidak sah dan terbatal (null and void);

(ii) Deklarasi bahawa kesemua pendapatan (income) oleh Xi Lin Ge Sdn Bhd (Defendan Kedua) pada masa yang material ada lah di pegang secara pemegang amanah (hold on trust and / or constructive trust) oleh Defendan - Defendan kepada Plaintif;

(iii) Defendan - Defendan di kehendaki untuk menunjukkan dan menyerahkan akaun beraudit Xi Lin Ge Sdn Bhd kepada Plaintif dan / atau peguamcara Plaintif dalam masa 14 hari daripada tarikh perintah ini;

(iv) Defendan Pertama di kehendaki mengambil kesemua tindakan yang berwajaran untuk mengaktifkan akaun bank Plaintif dalam OCBC Bank (Malaysia) Bhd (OCBC Account No 7301264144) dalam masa 7 hari daripada tarikh perintah ini di berikan;

(v) Defendan - Defendan hendak lah menanggungi (indemnify) Plaintif dan Lembaga Pengarah - Pengarah Plaintif kesemua kerugian dan / atau kerugian berbangkit (consequential damages) di kira daripada tarikh penamatan awal perjanjian penyewaan Plaintif;

(vi) Ganti rugi untuk kehilangan nama baik dan reputasi Plaintif sebanyak RM2,000,000.00;"

The Instant Suit

[11] At para 4 of their affidavit affirmed by P2 on 21 August 2023 (Enclosure 43), the Plaintiffs admitted that the Earlier Suit is about the hostile take - over of P company. The Plaintiffs further admitted that the Business Sale Agreement was decided upon in the Earlier Suit. Which held that the Business Sale Agreement was non - existent. Or perhap