The High Court has jurisdiction to grant a stay of committal proceedings pending review applications in exceptional circumstances to prevent injustice.

Hanipah Farikullah JCA:

Introduction

[1] This is an appeal by the appellants (plaintiffs) against the decision of the High Court allowing the respondents' (defendants) application to stay the committal proceeding pending the disposal of the respondents' application for review at the Federal Court.

[2] The ground of the plaintiffs' appeal is that the learned Judicial Commissioner (JC) erred in fact and law in deciding that the High Court has jurisdiction to grant an order for stay of the committal proceeding pending the disposal of an application by the defendants for review in the Federal Court pursuant to r 137 of the Federal Rules 1995.

[3] We heard the appeal and after due consideration to the respective submissions of counsel, we dismissed the appeal and now give our reasons.

Facts

[4] Before dealing specifically with the appeal in the present case, it is appropriate to state the background facts of this case.

[5] The 1st plaintiff was the registered owner of a shop lot known as Lot 59, Taman Ilmu, Setiawan, Perak ("Lot 59"). He was also the registered owner (10/15 parts of undivided shares) of two pieces of agricultural land with the title No GM 3896 Lot 563 and GM 3895 Lot 2564, both at Kg Selamat, Setiawan, Perak ("Tanah Kg Selamat"). The 1st plaintiff's mother, Wong Sing Bee, owns the other 5/15 parts of undivided shares of Tanah Kg Selamat. The 2nd plaintiff is the 1st plaintiff's son.

[6] The 1st defendant is an advocate and solicitor. The 2nd defendant is a licensed money lender. The 3rd, 4th and 5th defendants are partners of the 2nd defendant. The 1st, 3rd, 4th and 5th defendants are siblings.

[7] Sometime in 1995, the 1st plaintiff took a loan of RM590,000 from Hong Leong Bank Berhad. Lot 59, Tanah Kg Selamat and another property at No 7, Jalan Raja Omar, Setiawan, were all placed as securities for the said loan.

[8] In 1996, the 1st plaintiff took a loan of RM5,000 from the 2nd defendant through the 3rd defendant. For purpose of this loan, the 1st plaintiff provided the original copies of the title document of Lot 59, Lot 27 and Tanah Kg Selamat to the 2nd defendant whom would keep these documents until the loans were fully paid. The 1st plaintiff was also asked to sign the said documents for the loan purposes. Subsequently, the 2nd defendant approved further loans amounting to RM792,187.50 to the 1st plaintiff.

[9] Between 1996-2003, there were numerous sale and purchase transactions between the plaintiffs and the defendants related to Lot 59 and Tanah Kg Selamat.

[10] In 2003, the 1st plaintiff discovered that Lot 59 and Tanah Kg Selamat had been transferred to the 3rd, 4th and 5th defendants.

[11] All documentation for the loan and land and property transfer was done by the 1st defendant.

[12] The 1st plaintiff maintained that Lot 59 and Tanah Kg Selamat were unlawfully transferred to the 3rd, 4th and 5th defendants.

[13] Based on the development as enumerated above, on 18 August 2006, the plaintiffs filed the civil action No (M1)-22-203-2006 ("Guaman 203/2006") against the defendants for, inter alia, a declaration that the Sale and Purchase Agreement and the Transfer of Ownership forms on Lot 59 and Tanah Kg Selamat were null and void. The main ground of the claim was fraud.

[14] On 27 February 2008, the 3rd, 4th and 5th defendants filed a counter-suit against the 1st plaintiff vide civil action No (M3)-22-45-2008 ("Guaman 45/2008"). In this suit, the defendants claim, inter alia, for damages against the 1st plaintiff's trespass over Tanah Kg Selamat.

[15] On 24 February 2010, the Ipoh High Court ordered for both Guaman 203/2006 and Guaman 45/2008 to be consolidated, with Guaman 203/2006 became the main suit and Guaman 45/2008 as a counter-claim in that main suit.

[16] The Ipoh High Court on 28 November 2012 ordered that:

(i) The Sale and Purchase Agreement between the 1st plaintiff and the 3rd, 4th and 5th defendants on Tanah Kg Selamat was null and void; and

(ii) The Transfer of Ownership forms for Tanah Kg Selamat w