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2010 MarsdenLR 2489

HIGH COURT MALAYA KUALA LUMPUR
ROTTA RESEARCH LABORATORIUM SPA & ANOR – Appellant
Versus
HO TACK SIEN & ORS – Respondent
[Suit No: D-22(IP)-2138-2001]



The court emphasized the necessity of document discovery for fair proceedings, establishing criteria that the document must be identified, relevant, and in the possession of the opposing party.

Headnote:(A) Rules of the High Court 1980 - Order 24 - Discovery of documents - Application for discovery of defendants' Annex B sought by plaintiffs to compare with their own for allegations of theft of confidential information - The court found three criteria to allow discovery were met: identification of the document, relevance, and possession by the defendants. (Paras 12-15)

(B) Courts' Discretion - The court has discretionary power to order document production at any stage of the proceedings when necessary for a fair disposal of the cause. (Paras 14, 20)

Facts of the case:
Plaintiffs alleged defendants stole confidential information regarding the manufacturing process of a product and sought various injunctions and damages. Defendants denied all allegations, claiming the application was a fishing expedition and occurred too late in the process. (Paras 1-10)

Findings of Court:
The court ruled in favor of the plaintiffs' application for discovery, finding it necessary for a fair judgment and that the document was both relevant and in the defendants' possession. (Paras 11, 28)

Issues: Key issues included whether the application for discovery was timely and whether the plaintiffs had shown sufficient grounds for the request. (Paras 10, 12)

Ratio Decidendi: The court determined that the ability to compare the two Annex Bs was essential to adjudicate the case fairly, emphasizing that relevancy is paramount in discovery applications. (Paras 12, 25, 28)

Result: Application for discovery allowed with costs.

Judgement Key Points

Key Points: - The court may order discovery of documents at any stage when necessary for a fair disposal of the cause (!) (!) (!) (!) (!) (!) . - Discovery is allowed only if the document is identified, relevant, and in the possession of the opposing party (!) (!) (!) (!) (!) . - The purpose of discovery in this case is to compare the defendants’ Annex B with the plaintiffs’ Annex B to determine whether confidential information was stolen (!) (!) .

What are the criteria for allowing discovery of a document under Order 24 of the Rules of the High Court 1980?

What is the court's discretion regarding ordering document production during proceedings?

What is the rationale for discovery in this case?


Table of Content
1. claims of theft and trademark infringement (Para 1 , 2 , 3 , 4)
2. defendants' objections and allegations (Para 5 , 9 , 10)
3. court's discretionary power on discovery (Para 11 , 13 , 14 , 20)
4. criteria for allowing document production (Para 15 , 18)
5. conditions for discovery and necessary production (Para 22 , 27)
Mah Weng Kwai JC:

[1] The plaintiffs by their statement of claim dated 7 December2001 sought inter alia an injunction against the 1st, 2nd and 3rd defendants from using or disclosing confidential information obtained from the 2nd plaintiff; an injunction against the 3rd defendant from passing off the business of the plaintiffs; an order of delivery up of infringing documents and materials by the defendants to the plaintiffs and an order for an account of profits or for damages to be assessed. The plaintiffs have also sought inter alia, an injunction against the 3rd, 4th and 5th defendants from infringing their trade mark and from passing off the infringed products; an order for the delivery up of the infringed products to the plaintiffs for disposal by destruction and an order for an account of profits or for damages to be assessed.

[2] The plaintiffs allege that the 1st and 2nd defendants have stolen confidential information from them pertaining to the manufacturing process of the 1st plaintiff's glucosamine sulphate based product for the treatment of osteoarthritis, known as "Viatril- S" and marketing the same under the mark of "Artril 250".

[3] At all material times the 1st defendant was employed by the 2nd plaintiff as its group product manager and the 2nd defendant was engaged by the 2nd plaintiff as an independent consultant to help register new pharmaceutical products distributed and sold by the 2nd plaintiff with the Drug Control Authority (DCA) under the Ministry of Health, Malaysia.

[4] The plaintiffs allege that the 3rd, 4th and 5th defendants are involved in the manufacture, distribution and sales of a purported glucosamine sulphate based osteoarthritis drug known as Artril 250 which is similar to and/or bears a colourable and deceptive imitation of the 1st plaintiff's trade mark. The 1st plaintiff contends that the product is an infringement of their trade mark and the passing off is intended to steal the business of the plaintiffs thereby causing loss to the plaintiffs.

[5] The 1st and 2nd defendants have denied the allegations of theft of confidential information from the plaintiffs. The 3rd, 4th and 5th defendants have denied the allegations of infringement of the 1st plaintiff's trade mark and of passing off.

[6] The case was part heard by High Court Kuala Lumpur, Commercial Division 9 with the plaintiffs having called six witnesses. The plaintiffs have not closed their case.

[7] The plaintiffs have by a summons in chambers dated 5 January 2009 (encl 79) applied to the Court for an order of discovery and production against the 1st, 2nd, 3rd, 5th and 6th defendants of a document known as Annex B, being a document required by the DCA when considering an application for the registration and approval of a pharmaceutical product.

[8] The plaintiffs require the said document for the sole purpose of comparing it with its own Annex B to determine whether the defendants' Annex B contain confidential information or trade secrets of the 1st plaintiff with regards to the manufacturing of their product 'Artril 250' in competition with the plaintiffs' product 'Viatril-S'.

[9] The plaintiffs relied on the following grounds in support of their application:

9.1. the existence of the document Annex B filed by the defendants with the DCA has never been disputed by the defendants;

9.2. there is no privilege or secrecy attached to the defendants' Annex B;

9.3. the purpose of the discovery and production of the defendants' Annex B is solely for the purpose of comparison with the plaintiffs' Annex B and there is no fear of any improper disclosure;

9.4. the disclosure will assist the Court in arriving at a true and fa

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