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2010 MarsdenLR 818

HIGH COURT MALAYA KUALA LUMPUR
ISLAMIC FINANCIAL SERVICES BOARD – Appellant
Versus
MARLIN FAIROL MOHD FAROQUE & ANOR – Respondent
[Application For Judicial Review No: R3(2)-25-196-2008]



The Immunity of international organizations extends to legal processes before domestic courts, and such provisions must be interpreted to preserve the entity's operational integrity.

Headnote:(A) Islamic Financial Services Board Act 2002 - Section 7 - Industrial Relations Act 1967 - Jurisdiction on dismissal of employee of international organisation - Stay of proceedings in judicial review applications - Special circumstances considered - Court concludes that IFSB holds immunity from suit and legal process in respect of the Industrial Court, thus enabling the review to quash the award of the Industrial Court. (Paras 10, 14, 20, 31)

(B) Jurisdictional issues - Immunity conferred upon international organisations - Statutory interpretation of 'suit' and 'legal process' as they pertain to the IFSB Act - The Industrial Court's incorrect application of jurisdictional rules considered, leading to a conclusion of error warranting judicial correction. (Paras 18, 22, 49)

Facts of the case:
The applicant (IFSB) sought judicial review to quash the Industrial Court’s award favoring a claimant dismissed by IFSB. IFSB asserted jurisdictional immunity under the IFSB Act which was disputed in the proceedings.

Findings of Court:
The Industrial Court's decision was quashed, affirming IFSB's immunity from the suit under the relevant Act, acknowledging the impact on both public policy and international obligations.

Issues: The main issue revolved around the jurisdiction of the Industrial Court in light of the claimed immunity of IFSB under domestic law.

Ratio Decidendi: The court held that proceedings in the Industrial Court constituted a form of legal process from which IFSB enjoys immunity, establishing that the immunity provisions should extend to such proceedings under the IFSB Act.

Result: Application for judicial review allowed with no order as to costs.

Table of Content
1. judicial review stay procedures and interpretations (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. jurisdiction issues concerning ifsb's legal standing (Para 10 , 11 , 15 , 16 , 20)
3. interpretation of statutory immunity provisions (Para 12 , 30 , 39 , 46)
4. statutory context of ifsb and its establishment (Para 14 , 18 , 22 , 35)
5. outcome of the judicial review application (Para 49)
Mohamad Ariff Yusof J:

Introduction

[1] In this judicial review application under O 53, the Islamic Financial Services Board ("IFSB"), the applicant, applied for an order of certiorari to quash the entire award ( Marlin Fairol Mohd Faroque v. Islamic Financial Services Board ; [2008] 2 ILR 664 (Award Number 867 of 2008) of the Industrial Court, and for an order to stay all proceedings to enforce this award until the final disposal of the substantive application. I granted leave to the applicant and, after hearing extended argument, agreed with applicant's counsel that this was a proper case to grant a stay of proceedings pending the disposal of the substantive application for certiorari. In granting the stay, I provided my reasons which in summary concluded that there were special circumstances on the facts of this application to warrant the grant of stay of proceedings.

The Stay Application

[2] The starting point has to be the very terms of O 53 r 3(5) itself, which is worded as follows:

The grant of leave under this rule shall not, unless the Judge so directs, operate as a stay of the proceedings in question.

[3] This provision has been meticulously analysed by her ladyship Lau Bee Lan J in Nasioncom Holdings Bhd v. Suruhanjaya Sekuriti , 2007 MarsdenLR 1563 , where the wording was held to have a wide application which extended beyond judicial proceedings, but involved an exercise of proper discretion, and in considering this proper discretion to grant stay, the Court would need to consider whether there were special circumstances.

[4] I indicated in my decision that "stay of proceedings" in the context of judicial review has a special connotation, and, although there could be overlaps in standards applied, judicial review stay is not the same as stay of execution after judgment in judicial proceedings. The wide import of judicial review stay has been recognized as well in YAM Tunku Dato' Seri Nadzaruddin Ibni Tuanku Jaafar v. Datuk Bandar Kuala Lumpur & Anor, 2002 MarsdenLR 1105 :

The phrase "a stay of proceedings" must have a wider application. It does not confine to proceedings in Court only. Today, many applications for judicial review are for orders of certiorari to quash decisions of decision making bodies other than courts, including Government Ministers, local authorities and other bodies whose decisions are susceptible to judicial review. Thus the phrase "a stay of proceedings" in relation to such bodies must mean "a stay of the process by which the decision challenged has been reached, including the decision itself."

[5] See also Sugumar Balakrishnan v. Pengarah Imigresen Negeri Sabah & Anor & Another Appeal, 1998 MarsdenLR 1838 , where the Court of Appeal explained the effect of a stay as "temporarily suspending the effect of a public law decision pending the outcome of certiorari or prohibition proceedings brought to challenge the validity of the particular decision."

[6] Counsel for the applicant, Mr Lim Heng Seng, also drew my attention to the decision in R(H) v. Ashworth Hospital Authority [2003] 1 WLR 127, where the English Court of Appeal has usefully and clearly explained the purpose of stay, described by counsel as the "denial of full benefit of successful challenge" test:

The purpose of stay in a judicial review is clear. It is to suspend the "proceedings" that are under challenge pending the determination of the challenge. It preserves the status quo. This will aid the judicial review process and make it more effective. It will ensure, so far as possible, that, if a party is ultimately successful in his challenge, he will no

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