JUDGMENT

Raja Ahmad Mohzanuddin Shah J:

Preliminary

[1] In this action, the plaintiff (Renuga) seeks to set aside a Consent Judgment dated 3 July 2017 ("Consent Judgment") entered into between her, her brother one Thayananthan a/l Varatbaraju ("Thayananthan") and Malayan Banking Berhad ("Maybank"), on the one hand, and the defendant ("Libra Atlantic"), on the other.

[2] This Consent Judgment stems from an action filed in the Shah Alam High Court Civil Suit No: BA-22NCvC-495-08/2016 ("Shah Alam High Court ").

[3] The Consent Judgment, Renuga claims, was obtained through a sham Sale and Purchase Agreement entered into between her late father and Libra Atlantic. Libra Atlantic, according to her, is an illegal moneylender.

[4] Therefore, she is seeking a declaration that the Sale and Purchase Agreement is illegal and unenforceable, a declaration that it was obtained by fraud and was in violation of the Moneylenders Act 1951 and the Contracts Act 1950, as well as general damages, exemplary damages, interest on the judgment, and costs.

[5] As expected, Libra Atlantic denies these allegations and claims that Renuga's father intended to sell the property; hence, the sale and purchase agreement was made.

[6] In light of the above, this Court must decide whether the sale and purchase agreement was a sham to hide illegal moneylending activity and, if so, whether the sale and purchase agreement can be set aside as a result.

An Overview Of The Facts Of The Case

[7] Before the parties entered into the said Consent Judgment, Libra Atlantic had filed the said Shah Alam High Court suit as a plaintiff against the above three (3) parties.

[8] The plaintiff in that case was Libra Atlantic, while the 1st defendant was Renuga, the 2nd defendant was Thayananthan, and the 3rd defendant was Maybank.

[9] In the said Shah Alam High Court suit, Libra Atlantic claimed that there was in existence a valid and enforceable Sale and Purchase Agreement dated 22 January 2014 ("Sale and Purchase Agreement") entered into between Libra Atlantic and Renuga's father, the late Varatbaraju a/l Munusamy ("Deceased").

[10] The deceased died on 24 September 2014.

[11] According to Libra Atlantic, Renuga was appointed by the deceased in his Will dated 27 March 2012 as the sole executor and trustee of his estate, which includes the property in dispute ("property").

[12] Thereafter, Renuga obtained a Grant of Probate to deal with his estate.

[13] Libra Atlantic therefore, claims Renuga must comply with the Sale and Purchase Agreement.

[14] According to Libra Atlantic, the Consent Judgment recorded in the Shah Alam High Court suit was allegedly a testament to her acceptance of this fact.

[15] In order to better understand the origin of this dispute, I must go back to when the deceased was still alive.

[16] Previously, the deceased was the Managing Director of Magaram Sdn Bhd, Magaram Enterprise, Trans Medic Star (M) Sdn Bhd, Magaram Pro Eda Sdn Bhd, and Magaram Global CH Sdn Bhd.

[17] In order to fund his business, the deceased intended to borrow money from the defendant in the amount of RM800,000.00.

[18] Libra Atlantic agreed to give a loan of RM800,000.00 to the deceased on condition that the deceased entered into a Sale and Purchase Agreement with Libra Atlantic under which the deceased would sell the property located at 4, Jalan SS22/55, Seksyen 22, 46300, Petaling Jaya, Selangor Darul Ehsan. It is this property that is in dispute.

[19] Furthermore, the deceased must pay Libra Atlantic's agent, known as Vannir Selvan a/l Ganesan, the interest on the loan he will receive from Libra Atlantic.

[20] A desperation-driven decision was made by the deceased. He took out the loan. As the evidence developed, it became apparent that the deceased had no intention of selling the property to the defendant.

[21] Libra Atlantic then called the deceased to meet with its then solicitor, Pasupathi a/l Sithamparam ("PW1") from the firm of Messrs Pathi & Associates. He had prepared the purported Sale and