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2023 MarsdenLR 1261

HIGH COURT MALAYA PULAU PINANG
CHEAH CHENG HUAT – Appellant
Versus
AIG MALAYSIA INSURANCE BERHAD – Respondent
[Appeal No: PA-12B-14-09-2022]



Petitioner Advocates:Hanis Nabila Rosli ,Respondent Advocate: Wong Wai Leong,Alvin Kua Tze Min

The monetary limit for appeals under s 28(1)(a) of the Courts Of Judicature Act 1964 relates to the Judgment sum granted by the subordinate courts, not the amount claimed in the Statement Of Claim.

Headnote:(A) Courts Of Judicature Act 1964 - Section 28(1)(a) - Appeal from Sessions Court - Preliminary objection raised by Defendant regarding the competency of the Appeal due to the Judgment sum of RM3,050.00 being below the RM10,000.00 threshold - The court emphasized that the monetary limit refers to the Judgment sum granted, not the amount claimed in the Statement Of Claim. (Paras 2, 28, 60)

(B) Jurisdiction - The court clarified that the purpose of the monetary limit is to prevent appeals on small sums from clogging the High Courts, which is achieved by linking the limit to the Judgment sum. (Paras 29, 70)

Facts of the case:
The Plaintiff claimed damages exceeding RM322,000.00 against the Defendant for breach of insurance contracts but was awarded only RM3,050.00 by the Sessions Court. (Paras 10, 11)

Findings of Court:
The court found that the Appeal was incompetent due to the Judgment sum being below the statutory limit, and the Appeal did not raise a question of law. (Paras 71)

Issues: The main issue was whether the Appeal was competent under s 28(1)(a) given the Judgment sum. (Paras 2, 6)

Ratio Decidendi: The court held that the monetary limit in s 28(1)(a) pertains to the Judgment sum, not the amount claimed in the Statement Of Claim, to achieve the legislative intent of reducing frivolous appeals. (Paras 28, 60)

Result: The Appeal was struck out with costs awarded to the Defendant.

Table of Content
1. preliminary objection on appeal competency (Para 1 , 2 , 3 , 4 , 10 , 11 , 12 , 13)
2. interpretation of s 28(1)(a) monetary limit (Para 5 , 19 , 20 , 22 , 30 , 31 , 32 , 35 , 36 , 41)
3. court's reasoning on appeal jurisdiction (Para 6 , 7 , 8 , 9 , 14 , 15 , 18 , 21 , 27 , 29 , 33 , 34 , 37 , 38 , 39 , 40 , 42 , 45 , 46 , 49 , 50 , 55 , 57 , 58 , 70)
4. ratio on appeal prohibition under s 28(1)(a) (Para 24 , 25 , 26 , 28 , 60)
5. conclusion on appeal incompetency (Para 62 , 69 , 71)
Kenneth St James JC:

Prelusion

[1] The Appeal before me is a post-trial appeal from the Sessions Court. But at the hearing of the Appeal, the Respondent/Defendant (D) raised a preliminary objection against the competency of the Appeal.

[2] The Defendant submits that s 28(1)(a) of the Courts Of Judicature Act 1964 (CJA) prohibits an appeal from the subordinate courts (the Sessions Court and the Magistrates Court) when "the amount in dispute or the value of the subject matter" is RM10,000.00 or less, "except on a question of law".

[3] In the Sessions Court, the Appellant/Plaintiff (P) claimed the remedy of general, aggravated, exemplary, and quantifiable special damages that amounted to much more than RM10,000.00.

[4] The Sessions Court dismissed all of P's claims except for the sum of RM3,050.00 ie the Judgment sum granted to P against D was only RM3,050.00.

[5] If the preliminary objection is allowed, the Appeal will be rendered incompetent and should be struck out. If, on the other hand, the preliminary objection is dismissed, the Appeal will be heard and determined.

[6] Should D's preliminary objection be allowed?

Section 28(1)(a) Of The CJA

[7] Section 28(1)(a) of the CJA, as stated earlier, concerns Appeals from the subordinate courts to the High Court.

[8] It is pertinent to note the very words of s 28(1)(a) of the CJA:

Section 28. Civil appeals from subordinate courts.

(1) No appeal shall lie to the High Court in any of the following cases:

(a) subject to any other written law, from a decision of a subordinate Court in any civil cause or matter where the amount in dispute or the value of the subject matter is ten thousand ringgit or less except on a question of law;...

NOTE - The original provision was "one hundred dollars" (Revised 1972). Previously "Five hundred ringgit" - see Act A279.

Previously "Five thousand ringgit" - see Act A530.

Now "ten thousand ringgit" - see Act A670.

[Emphasis Mine]

[9] I will refer to this current RM10,000.00 limit as "the section 28(1)(a) monetary limit".

Background-The Sessions Court Suit

[10] In the Sessions Court suit, P sued D under several insurance policies that P purchased from D. P asserted that in 2012, as a result of his trips to Indonesia and Langkawi, he fell very ill. He made claims under his insurance policies. D denied his claims. He sued D for breach of contract.

[11] In his Statement Of Claim, P claimed unquantifiable damages (general, aggravated and exemplary), as well as quantifiable special damages. The special damages, from my computation of the particulars that P provided, amounted to over RM322,000.00. So, the amount claimed far exceeded the s 28(1)(a) monetary limit of RM10,000.00.

[12] In its Defence, D asserted that P's claims were not covered by the policies. D asserted that:

(1) P was not in an accident or suffered an injury as defined in the policies;

(2) P did not suffer any permanent injury;

(3) P's illness was not contracted during his trips to Indonesia or Langkawi.

[13] The Sessions Court granted Judgment to P in the amount of RM3,050.00. P appealed to the High Court.

The Meaning Of The Words "The Amount In Dispute Or The Value Of The Subject Matter" In Section 28(1)(a)

[14] The pivotal question to answer is-what is the meaning of the words "the amount in dispute or the value of the subject matter" in s 28(1)(a)?

[15] On the one hand, there are case law authorities that opined that the s 28(1)(a) monetary limit that prohibits an appeal must be related to the amount claimed in the Statem

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