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2020 MarsdenLR 1270

FEDERAL COURT PUTRAJAYA
STONE WORLD SDN BHD – Appellant
Versus
ENGAREH (M) SDN BHD – Respondent
[Civil Appeal No: 02(f)-55-06-2019(W)]



Petitioner Advocates:Robert Low,Ahmad Shahrizal Abdul Aziz,Khong Mei Yan ,Respondent Advocate: Terrence Chan Kah Meng,Chuar Kia Lin

The functus officio doctrine prevents courts from altering final judgments but allows for consequential orders to enforce original rulings, essential for ensuring justice.

Headnote:(A) Functus Officio Doctrine – Jurisdiction and Authority – The court addresses the doctrine of functus officio, reaffirming that a court loses the authority to alter a final judgment. However, it retains jurisdiction to issue consequential orders necessary to give effect to the initial ruling, as established in Tenaga Nasional Bhd v. Prorak Sdn Bhd [2000] 1 MLJ 479. (Paras 13, 16, 66)

(B) Liberty to Apply – The doctrine allows courts to make ancillary orders under the liberty to apply rule, which is vital to ensure the enforcement of court decisions. This doctrine upholds the final judgment's effect without violating the functus officio principle. (Paras 20, 36, 40)

(C) Res Judicata & Issue Estoppel – The principle is relevant to the appeal, as all avenues concerning the initial order had been exhausted, establishing the appeal's dismissal. (Paras 89, 92)

Facts of the case: Respondent Engareh filed a detinue suit against Stone World regarding marble stones. After a favorable ruling, Stone World sought modifications, which were refused. Engareh later requested damages due to Stone World's non-compliance, leading to Stone World contesting the jurisdiction of the consequential order. (Paras 2-11)

Findings of Court: The court confirmed that the original judgment and findings regarding Stone World’s liability for detinue remained intact, allowing for the consequential order necessary for enforcement. (Paras 66, 68)

Issues: The court examined whether the High Court had jurisdiction to grant the consequential order despite the functus officio doctrine. (Para 12)

Ratio Decidendi: The court clarified that while functus officio applies post-judgment, it does not prevent courts from issuing consequential orders that maintain the original judgment's effect without altering its substance. (Paras 66-70)

Result: Appeal dismissed with costs.

JUDGMENT

Nallini Pathmanathan FCJ:

Introduction

[1] The primary question of law for disposal in this appeal relates to the recurrent problem of identifying when a court is rendered functus officio, as opposed to when it retains jurisdiction and/or remains empowered to grant consequential orders, subsequent to the grant of a final judgment or order.

[2] However, overlying the issue stated above in this appeal, is that of res judicata and issue estoppel, as the present appeal stems from an impeachment suit seeking to set aside orders granted in an earlier suit. This impeachment suit was filed after the grant of final orders in the earlier suit. All avenues of appeal in respect of the earlier suit had also been exhausted.

[3] The background facts are of significance.

The Broad Background

[4] The respondent, Engareh (M) Sdn Bhd ('Engareh') filed a suit founded on the tort of detinue against the appellant, Stone World Sdn Bhd ('Stone World') in S-22NCVC-85-2010 ('Suit No 85').

[5] After a full trial, Engareh succeeded in establishing its case in detinue. The trial court ordered that the subject matter of the claim, marble stones, be delivered up or that Engareh collected the same. Additionally the trial court ordered that damages were to be assessed in favour of Engareh, and Stone World in respect of its counterclaim.

[6] Stone World then sought an amendment or consequential order whereby the option to deliver or collect was altered such that Stone World was bound to deliver up the marble stones to a specific site within an allocated time. However Stone World did not comply with this order.

[7] Engareh, some four years later, sought a consequential order from the trial court for damages to be assessed rather than for the delivery up of the marble stones, as the marble stones had been effectively ravaged/damaged by time and the environment.

[8] Stone World objected to the merits of the application but at no time challenged the jurisdiction of the court to grant the consequential order. The trial court granted the consequential order on 16 October 2015 ('the Consequential Order') in order to give effect to its judgment that would otherwise be rendered nugatory.

[9] Stone World appealed to the court of Appeal, which upheld the High court order. No further appeal was filed to the Federal court.

[10] In the meantime damages were assessed in favour of Engareh by the Registrar of the High court and upheld by the Judge. Engareh then took out a winding-up petition against Stone World. A consent order was entered between Engareh and Stone World in relation to the winding-up suit that was then discontinued (the award of damages is the subject matter of a pending appeal in the court of Appeal).

[11] Against this backdrop, Stone World then initiated a fresh suit in the High court seeking to impeach the Consequential Order on the grounds that the High court had no jurisdiction to grant such an order as it was at the time, functus officio. This claim was dismissed both at the High court and the court of Appeal, hence the present appeal.

[12] The question before us is whether the High court, the original trial court was in fact functus officio and thus disentitled to grant the consequential order, or whether the doctrine of functus officio simply did not come into play, as the order was necessary to give effect to the final judgment, and did not in any manner alter or affect the substance of the dispute adjudicated upon by the trial court.

The Law Relating To The Doctrine Of Functus Officio

8

[13] It is settled law that once a court has pronounced a final order it does not possess the authority to re-open, alter, amend and supplement the final order and judgment relating to the dispute it has adjudicated upon. This rule, known as the doctrine of functus officio, stems from the principle of finality in litigation. There would be great uncertainty and chaos if courts were permitted to review and reconsider final orders and judgments.

[14] This doctrine has been descri

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