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2025 MarsdenLR 2320

HIGH COURT MALAYA KUALA LUMPUR
TAWFIQ AYMAN & ANOR – Appellant
Versus
PERBADANAN PENGURUSAN ONE MENERUNG & ORS – Respondent
[Civil Suit No: WA-22NCvC-368-07/2023]



Petitioner Advocates:Fahri Azzat,Muhammad Firdaus Danial Tan,Gajendra Jeya Kumar ,Respondent Advocate: W S Saw,Yeoh Cho Kheong

The court upheld the need for preliminary determinations of legal issues to efficiently resolve substantive parts of litigation while respecting statutory compliance and judicial economy.

Headnote:(A) Rules of Court 2012 - Order 33 Rule 2 - Determination of legal issues - The court allowed the application to determine the validity of a Settlement Agreement and its implications for ongoing disputes related to trespass claims. The determination aims to prevent multiplicity of proceedings and clarify litigation management. (Paras 1-40)

(B) Preliminary determination - The court emphasized that a preliminary determination of threshold legal issues could efficiently resolve substantial parts of litigation, particularly within statutory contexts. (Paras 22-28)

(C) Ultra vires principles - Management corporations are bound by statutory mandates, highlighting that agreements conflicting with statutory duties may be rendered void. (Paras 12-15)

(D) Res judicata and estoppel - Addresses the preclusive effects of settlement agreements while taking into account statutory compliance. (Paras 16-18) (E) Contractual interpretation - Emphasizes the significance of regulatory context in understanding the validity of agreements within statutory frameworks. (Paras 19-21) (F) Judicial economy - The court noted the importance of efficiently resolving disputes through preliminary determinations to save time and resources. (Paras 23-28)

Table of Content
1. validity determination for settlement agreement. (Para 1 , 9 , 10 , 11)
2. challenges faced by the first defendant's appeal. (Para 3 , 4 , 5)
3. guidelines for preliminary determination under o 33. (Para 6 , 7 , 8)
4. statutory duties and ultra vires principles. (Para 12 , 13 , 14)
5. res judicata and estoppel in settlement agreements. (Para 15 , 18)
6. limits of estoppel against statutory duties. (Para 16 , 17)
7. contract interpretation principles applied to settlement agreement. (Para 19 , 20 , 21)
8. multiplicity of proceedings concerns. (Para 22 , 23 , 24)
9. judicial economy through preliminary determinations. (Para 25 , 26 , 27 , 28)
10. conditional legal determinations despite factual disputes. (Para 29 , 30)
11. legislative purpose in statutory interpretation. (Para 31 , 32)
12. court's reasoning and procedural directives. (Para 33 , 34 , 35 , 36 , 37 , 38 , 39)
Arziah Mohamed Apandi JC:

I. Introduction To The Application

[1] This appeal by the First Defendant is on my decision allowing Enc. 95 which is the Plaintiffs' application under O 33 r 2 of the Rules Of Court 2012 (ROC 2012) for specific questions arising in this action to be tried before the trial of the cause is commenced. The translated English version of Enel. 95 reads as follows:

NOTICEOF APPLICATION

Let all parties concerned attend before the Judge in Chambers on 22 MAY 2025 10:00 AM on the hearing of an application on the Plaintiff under r 33 O 2, 3(2) and 5 of the Rules of Court 2012 for the following orders:

(1) The Court orders the legal issues below to be tried before or in lieu for full trial:

(a) Whether the Settlement Agreement between Plaintiffs and First Defendant ("the Settlement Agreement") is valid or not?

(b) If the Court finds the Settlement Agreement valid, does the Settlement Agreement have the effect of estopping the First Defendant from taking legal action against Plaintiffs for the First Defendant's trespass claim ("Trespass Issue") against Plaintiffs?

(c) If the Court finds the Settlement Agreement invalid, would the Kuala Lumpur High Court Civil Suit No: WA-22NCvC-146-03/2019 ("Suit 146") being revived? And can this Court declare the Notices of Discontinuance as null and void?

(2) The Court determines the mode of trial as follows:

(a) The Court proceeds with trial and decides the Plaintiffs claim in paragraph 37(a) of the Statement of Claim and First Defendant's counterclaim in paras 51.1 and 51.2 and its Statement of Counterclaim;

(b) The Court adjourns trial of First Defendant's Counterclaim in paragraphs 51.3 and 51.4 to determine whether it will be continued after deciding the issues given in paragraphs (1)(a), (b) and (c) above;

(c) The Court hears evidence from witnesses of the Plaintiffs and Defendants only on the background to the existence of the Settlement Agreement, namely First Plaintiff and Teh Kean Ming, already presented; and

(d) Subsequently, the Court hears arguments by Plaintiffs and Defendants on the issues raised in paras 1(a), (b) and (c) above and makes the decision thereon.

(3) Costs to be costs in the cause; and

(4) Any further relief deems fit and necessary.

The grounds of the application are as follows:

(i) There is no dispute that the Settlement Agreement signed by both parties;

(ii) With the withdrawal of the case against the Second to Ninth Defendants, this case is only focussed on one legal issue, namely the validity of the Settlement Agreement between Plaintiffs and First Defendant;

(iii) Plaintiffs' position contends the Settlement Agreement is valid and enforceable while First Defendant's position is that the Settlement Agreement is invalid because it purportedly conflicts with provisions of the Strata Management Act 2013 ;

(iv) The Trespass Issue by Defendants is also closely related to the validity of the Settlement Agreement because the question whether First Defendant is estopped exists by it. This matter must be explained before the Court hears trial of it;

(v) The facts on the formation of the Settlement Ag

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