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2023 MarsdenLR 1635

HIGH COURT MALAYA KUALA LUMPUR
DATUK KASI K L PALANIAPPAN – Appellant
Versus
MENARA EMBUN SDN BHD & ORS AND ANOTHER CASE – Respondent
[Originating Summons No: WA-24NCC-410-09/2017 & WA-24NCC-411-09/2017]



Petitioner Advocates:Gopal Sreenevasan,Shermaljit Singh ,Respondent Advocate: Eric Clement

The court emphasized the necessity of cross-examination to resolve factual disputes in minority oppression claims, allowing the introduction of further evidence to support the Plaintiff's case.

Headnote:(A) Companies Act, 2016 - Section 346 - Minority oppression claims - Plaintiff's applications to admit further affidavits and cross-examine deponents granted - Court emphasized the necessity for cross-examination to resolve factual disputes regarding alleged understandings and breaches impacting management participation - Defendants' objections based on relevance and timing were dismissed, as the documents were pertinent to the core issues of the cases. (Paras 3, 11, 12, 44, 45)

(B) Judicial discretion - The court retains absolute discretion to allow or disallow cross-examination based on the facts of each case - The necessity for cross-examination must advance the cause of justice. (Paras 16, 20, 28)

(C) Res judicata - The court determined that previous findings in a related case did not preclude the current claims as the parties and issues were distinct. (Paras 40, 43)

Facts of the case:
The Plaintiff filed applications in two originating summonses alleging minority oppression against the management of two companies, seeking to introduce further evidence and cross-examine key deponents. The Plaintiff asserted that the documents were relevant to proving his claims of oppression.

Findings of Court:
The court found the narrowed down documents relevant and necessary, allowing the Plaintiff to fully present his case and granting leave for cross-examination to resolve factual disputes.

Issues: The main issues included the relevance of additional documents, the necessity of cross-examination for establishing facts, and the applicability of res judicata concerning previous findings.

Ratio Decidendi: The court ruled that the Plaintiff should be allowed to cross-examine deponents to clarify disputes over alleged understandings and breaches, and that the necessity for such evidence was crucial for a just determination of the cases.

Result: Applications granted.

Table of Content
1. multiple applications filed by the plaintiff. (Para 1 , 2)
2. background of minority oppression claims. (Para 3 , 4 , 5 , 6)
3. details of documents sought to be admitted. (Para 7 , 8)
4. defendants' objections to the documents. (Para 9 , 10)
5. court's reasoning on document relevance. (Para 11 , 12 , 13 , 14 , 15)
6. principles governing cross-examination. (Para 16 , 17)
7. need for cross-examination due to factual disputes. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)
8. cross-examination of non-deponents discussed. (Para 29 , 30 , 31 , 32)
9. res judicata and its applicability discussed. (Para 39 , 41 , 43)
10. conclusion granting leave for cross-examination. (Para 44)
Liza Chan Sow Keng J:

Introduction

[1] There are 4 applications made by the Plaintiff before the court:

1.1 Enclosure ("Encl") 290 in Originating Summons WA- 24NCC-410-09/2017 ("Menara Embun OS") and Encl 271 in Originating Summons WA-24NCC-411-09/2017 ("Modern Eden OS") seeking for the Plaintiff's further Affidavit affirmed on 10 September 2021 ("P afft 7") to adduce 12 volumes of documents be admitted in evidence for Both OS ("Further Affidavit Application"); and

1.2 Encl 286 in the Menara Embun OS and Encl 272 in the Modern Eden OS that the Plaintiff be granted leave to cross-examine, through counsel, Farah Mahami Binti Tan Sri Datuk Haji Mustapha Kamal on her Affidavits and Felina Binti Tan Sri Datuk Haji Mustapha Kamal on the Affidavits affirmed on her behalf ("Cross Examination Application").

[2] I had allowed the applications on 5 September 2023. These are the reasons for my decisions. As the applications were related, it is convenient to deal with all 4 applications in one judgment.

Background

[3] The Menara Embun OS and Modern Eden OS were filed by the Plaintiff, Datuk Kasi a/l Palaniappan ("DK") pursuant to s 346 of the Companies Act, 2016 (" CA 2016") complaining of minority oppression in respect of the affairs of Menara Embun Sdn Bhd and Modern Eden Sdn Bhd respectively.

[4] DK together with one Impresive Circuit Sdn Bhd also commenced another minority oppression claim in respect of Setia Haruman Sdn Bhd vide Originating Summons No WA-24NCC-290-07/2017 ("Setia Haruman OS"). In the Setia Haruman OS, DK was struck out as a Plaintiff on 25 April 2018 as he was not a shareholder of Setia Haruman. DK however owns 50% of the shares in Impresive Circuit. The Setia Haruman OS was heard and eventually dismissed by me on 25 June 2021. The court of Appeal had affirmed the decision on 20 January 2023. Impresive Circuit's leave application to appeal to the Federal court was dismissed by the Federal court on 15 August 2023.

[5] The Menara Embun OS and Modern Eden OS were converted into writ actions by Wong Chee Lin J but both had reverted back to OS actions after the 2nd to 4th Defendants' appeals to the court of Appeal was allowed on 26 August 2021 and the Plaintiff's application s for leave to appeal to the Federal court were dismissed on 21 February 2022.

[6] In each of the 3 OS Actions, Tan Sri Mustapha Kamal ("TSMK") was named as the 2nd Defendant. The Plaintiff's complaints in the 3 OS Actions are that alleged oppressive acts were carried out in breach of an alleged Understanding, New Board Understanding that DK allegedly had with TSMK and DK's legitimate expectation to participate in the management of Setia Haruman, Menara Embun and Modern Eden.

The Further Affidavit Applications

[7] Via P Afft 7, the Plaintiff seeks to adduce 12 volumes of documents as follows:

a) Volumes 1 to 3 - documents exhibited in the earlier affidavits in these proceedings;

b) Volume 4 - documents related to Setia Haruman Sdn Bhd;

c) Volumes 5 to 9 - documents pertaining to 15 other companies and Setia Haruman;

d) Volume 10 - documents pertaining to the affairs of several companies which existed before the incorporation of the 1st Defendant;

e) Volume 11 - the notes of proceedings of the cross examination of TSMK, Azmy and THP in the Setia Haruman OS from 17th to 19 March 2021(which the 2n

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