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2020 MarsdenLR 678
HIGH COURT MALAYA KUALA LUMPUR
FAUZI HASSAN & ORS – Appellant
Versus
ABD HALIM HUSIN & ORS – Respondent
[Originating Summon No: WA-24NCvC-611-04/2020]
Membership disputes within registered societies must be resolved internally as per their governing rules before recourse to court.
Headnote:(A) Societies Act 1966 – Section 16 – Injunctive relief – Plaintiffs sought declarations regarding the validity of the DPMM’s AGM and the new office bearers' election, claiming violations of the DPMM's Constitution – The Court assessed claims of locus standi and justiciability, ultimately dismissing the Plaintiffs' application on grounds of lack of standing due to failure to exhaust internal remedies as prescribed by DPMM's Constitution. (Paras 7-8, 24, 30, 63-82)
(B) Injunctions – The Court found that the disputes were internal matters within the society's purview and must be resolved internally, leading to dismissal of the Plaintiffs' application. (Paras 67-82)
Facts of the case: The Plaintiffs challenged the validity of DPMM's AGM held on 26 February 2020, claiming irregularities in its conduct and seeking to restrain the Defendants from acting as elected office bearers. (Para 7)
Findings of Court: The Court held that Plaintiffs lacked locus standi and did not exhaust internal remedies, making internal governance rules applicable. (Paras 41-50)
Issues: Whether the Plaintiffs had locus standi to file the originating summons and if the subject matter was justiciable. (Paras 24, 67)
Ratio Decidendi: The court ruled that internal rules of the DPMM govern membership and dispute resolution, and parties must utilize internal processes prior to court engagement. (Paras 48-50, 63-64)
Result: Application dismissed with costs. (Para 82)
JUDGMENT
(Enclosure 4)
A. Introduction
[1] On 20 April 2020, the Plaintiffs filed an Originating Summons against the Defendants seeking for the following reliefs:
1. A declaration that the Annual General Meeting of the Dewan Perniagaan Melayu Malaysia (Registration No PPM-002-14-11011957) ("DPMM") held on 26 February 2020 (the "AGM") and/or the meeting of the Majlis Eksekutif Dewan of DPMM held on 26 February 2020 were and are null and void;
2. A declaration that any decision, appointment and/or election made during the AGM, including the election of the new Majlis Eksekutif Dewan (the "Invalid MED"), is null and void;
3. A declaration that any decision or action taken by the Invalid MED and/or any member thereof, including the issuance of the show cause letter dated 26 February 2020 (Reference Number JkPD/MAT54/srt(1)2020) to the 1st, 2nd and 3rd Plaintiffs, is null and void;
4. A declaration that the valid and lawful Majlis Eksekutif Dewan of DPMM ("MED") comprises of those persons listed in the Annexure to this Originating Summons;
5. An order to restrain the Defendants, and/or the Invalid MED and/or any member thereof, including their agents, servants or representatives, from purportedly acting and/or taking any steps and/or exercising any power as members of, and for an on behalf of, the MED;
6. An order to restrain the Defendants, and/or the Invalid MED and/or any member thereof, including their agents, servants or representatives, from purportedly giving effect, whether directly or indirectly, to any purported decision made, or purported action taken, in the AGM;
7. Costs to be borne by the Defendants; and/or
8. Any further and/or other order this Honourable Court deems fit and/or otherwise appropriate.
[2] Simultaneous to the Originating Summons, the Plaintiffs also filed encl 4 applying for ex parte injunctive reliefs against the Defendants pursuant to s 51(1) Specific Relief Act 1950 and O 29 rule 1 of the Rules of 2012 (ROC 2012) namely for:
(a) An order to restrain the Defendants and/or their agents, servants or representatives, and/or the Majlis Eksekutif Dewan ("MED") purportedly elected during the Annual General Meeting of the Dewan Perniagaan Melayu Malaysia (Registration No PPM-002-14-11011957) ("DPMM") which was purportedly held on 26 February 2020 (the "Invalid AGM") and/or any member thereof, from purportedly acting and/or taking any steps and/or exercising any power as members of, and for and on behalf of the MED, pending the final determination of the Originating Summon.
(b) An order to restrain the Defendants and/or their agents, servants or representatives, and/or the MED purportedly elected during the Invalid AGM and/or any member thereof, from purportedly giving effect, whether directly or indirectly, to any purported decision made, or purported action taken, in the Invalid AGM;
[3] By their encl 4, the Plaintiffs are essentially seeking for interim reliefs that the Defendants be restrained from acting as MED members or giving effect to any decisions or actions taken in the AGM, pending the disposal of the OS.
[4] Considering the likelihood that an interim injunction would deprive the Defendants from discharging their statutory duties and obligations under the Constitution and would obstruct the Defendants from conducting the normal business of the DPMM, this Court was of the view that the Defendants must be given the opportunity to defend their position. This Court had then instructed that the application be served on the Defendants and for the Plaintiffs' Enclosure 4 to be heard by way of inter parties hearing.
[5] Enclosure 4 was called for case management before this Court on 14 May 2020 wherein counsels for both the Plaintiffs (Dato' Malik Imtiaz / Surendra Ananth) and the Defendants (Mr David Mathews / Ranjini Suppiah) were present. The Defendants had requested for more time to file their affidavit to oppose the application. The Plaintiffs had also requested time to file a reply to the Defendants'
