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2025 MarsdenLR 4679

COURT OF APPEAL PUTRAJAYA
N2N CONNECT BERHAD & ORS – Appellant
Versus
CHUA TIONG HOONG & ORS – Respondent
[Civil Appeal No: W-02(IM)(IPCv)-32-01/2024]



Petitioner Advocates:Suaran Singh Sidhu,Gooi Yang Shuh,Chow Xing Hui,Ashwinathan Selvanathan,Cheryl Chung Ke Han ,Respondent Advocate: Himahlini Ramalingam,Leejia Rou,Aiman Haqeem Al Sadat

The court emphasized that relevance and necessity are critical for granting discovery, and confidentiality concerns do not negate these factors.

Headnote:(A) Rules of Court 2012 - Order 24 - Discovery of documents - Plaintiffs' application for discovery dismissed by High Court on grounds of relevance and necessity - Court of Appeal found documents sought were relevant and necessary for fair trial - Emphasized that confidentiality concerns do not negate relevance and necessity - Appeal allowed, High Court's order set aside with costs. (Paras 26, 41)

(B) Discovery Principles - The court must consider relevance, necessity, and possession of documents when granting discovery - The threshold for discovery is lower than for pre-action discovery - Confidentiality can be addressed through protective measures. (Paras 29, 34, 41)

Facts of the case:
The Plaintiffs, a group of companies, sought discovery of documents from the Defendants related to copyright infringement, breach of confidence, and other claims. The High Court dismissed the application, citing lack of necessity and potential fishing expedition. (Paras 19-20)

Findings of Court:
The Court of Appeal found that the documents were relevant and necessary for the Plaintiffs' claims and that the High Court erred in its assessment of necessity and confidentiality. (Paras 41b, 41c)

Issues: The main issues were whether the documents sought were relevant and necessary for the Plaintiffs' claims and whether the High Court's dismissal was justified. (Paras 26, 41)

Ratio Decidendi: The Court ruled that the relevance and necessity of the documents must be established for discovery, and confidentiality concerns do not outweigh these factors. The High Court's findings were deemed incorrect. (Paras 41b, 41c)

Result: Appeal allowed, High Court's order set aside with costs.

JUDGMENT

Mohd Firuz Jaffril JCA:

[1] The following is the judgment of this Court in relation to the Appellants/Plaintiffs' appeal against the decision of the High Court dated 8 December 2023 wherein the Appellant/Plaintiffs' application for discovery against the Respondents/Defendants was dismissed with costs.

[2] For purposes of convenience, the parties will be referred to in their original capacities at the High Court .

Parties To The Proceedings

[3] The 1st Plaintiff: N2N is a public limited company incorporated in Malaysia. N2N was previously known as N2N Connect Sdn Bhd N2N is presently listed on the Bursa Malaysia ACE Market and N2N is in the business of investment holding, researcher and developer of software packages, provider of design, programming, consultancy services and related activities and management of investment properties.

[4] The 2nd Plaintiff: NGN Connection is a private limited company incorporated in Malaysia. NGN is a wholly owned subsidiary of N2N and NGN is in the business of providing managed network services, consultancy services, sales, marketing, and related activities.

[5] The 3rd Plaintiff: Global Solutions is a private limited company incorporated in Malaysia. Global Solutions is a wholly owned subsidiary of N2N and is in the business of being a researcher and developer of software packages and provider of design, programming, consultancy services and related activities.

[6] The 4th Plaintiff: Hermes Bos is a private limited company incorporated in Malaysia. Hermes Bos is a subsidiary of Global Solutions and is in the business of being a researcher and developer of software packages and a provider of design, programming, consultancy services and related activities.

[7] The 5th Plaintiff: Netinfinium is a private limited company incorporated in Malaysia. Netinfinium is a wholly-owned subsidiary of N2N Connect Holdings Sdn Bhd and N2N Connect Holdings Sdn Bhd is a shareholder of N2N. Netinfinium, like Global Solutions, is in the business of being a researcher and developer of software packages and provider of design, programming, consultancy services and related activities.

[8] The N2N Group works as a collective enterprise for the purpose of creating, developing, enhancing, marketing, advertising, promoting and further training its staffs to providing integrated e-commerce securities trading solutions to local and international stock broking firms and financial institutions and certain regional firms as well.

The Defendants

[9] The 1st Defendant, Nicholas, is a Malaysian citizen of full age. Nicholas is currently a director of Finevo and AK Partner. He is also former director of N2N, Global Solutions, Hermes Bos and a former Operations Director of NGN Connection.

[10] The 2nd Defendant, Ashraf, is a Malaysian citizen of full age. Ashraf is a director and shareholder of AK Partner and is a former employee of N2N.

[11] The 3rd Defendant, Shyam, is a citizen of Indian nationality as known to the Plaintiffs and of full age. Shyam is a former employee of Global Solutions.

[12] The 4th Defendant, Voon Fui, is a Malaysian citizen and a former employee of Netinfinium. The employment history of the Defendant Individuals shall be dealt with in Part C below.

[13] The 5th Defendant, Finevo is a private limited company incorporated in Malaysia. Finevo is purportedly in the business of computer programming activities, computer consultancy and computer facilities management activities.

[14] The 6th Defendant, AK Partner, is a private limited company incorporated in Malaysia. AK Partner is purportedly in the business of computer consultancy.

Employment History Of The Individual Defendants With The Plaintiffs

[15] Nicholas was at all material times an employee and / or a director of N2N, Global Solutions, Hermes Bos and the Operations Director of NGN Connection as early as 10 August 2000. He was appointed as an employee of N2N on 2 January 2004. He resigned as a director of N2N on or around 30 March 2017 and ceased to be a di


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