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2024 MarsdenLR 3074

SESSIONS COURT (SEREMBAN)
MOHAMAD KAMIL NIZAM, CJ
Leow Heng Fatt & Anor – Plaintiff
Versus
Palm Springs Development Sdn Bhd – Defendant
SUIT NO NA-A52NCvC-85-08 OF 2023



The court ruled that transfer of proceedings should prioritize convenience for parties and witnesses per the Rules of Court, ensuring fair trial considerations govern location determination.

Headnote:(A) Rules of Court 2012 - Orders 2, 3, 57, and 92 - Transfer of proceedings - Application to transfer civil proceedings from High Court to Sessions Court based on convenience and forum - Court considers factors including locations of the parties, convenience for witnesses, and cost effectiveness. (Paras 1, 4-6, 10-12, 31)

(B) Convenience of trial location - The court must ensure that proceedings are more conveniently or fairly tried based on where the defendants and witnesses reside, not solely where the property is located. (Paras 10, 12, 31)

(C) Applicable law and principles - The Rules stipulate that convenience, the location of the cause of action, and the interests of justice collectively guide the court's decision on transfer applications. (Paras 6-8, 27-30)

Facts of the case:
The plaintiffs claim liquidated damages for late delivery of vacant possession from the defendant developer who delayed handing over a property from 2018 to 2022. (Paras 2-4)

Findings of Court:
The application to transfer the case to the Sessions Court at Petaling Jaya is granted as convenience favors maintaining proceedings locally where the defendant's business and witnesses are located. (Paras 10, 31)

Issues: Whether the transfer of proceedings is justified based on convenience, appropriate jurisdiction, and the interests of justice in ensuring efficiency and fairness. (Paras 5, 31)

Ratio Decidendi: The court emphasized the importance of considering all enumerated factors under Order 57 Rule 1, highlighting that convenience for all parties combined with costs and the locality of the action should govern the decision. (Paras 27-28, 30)

Result: Defendant's application for transfer granted with costs of RM2500 to be borne by the Defendant.

[1]This is an application by the Defendant under Order 2 Rule, Order 3 Rule 5, Order 57 Rule 1 and Rule 2 and Order 92 Rule 4 of the Rules of Court 2012 to transfer this proceeding to the Sessions Court at Petaling Jaya, in the state of Selangor. The relevant cause papers for this application are:

a)Writ of Summons and Statement of Claims dated 4.8.2023 (“Enclosure 1 and 2”);

b)Statement of Defence dated 25.8.2023 (“Enclosure 5”);

c)Amended Writ of Summons and Statement of Claims dated 8.9.2023 (“Enclosure 6 and 7”);

d)Amended) Statement of Defence and Counter Claim dated 16.10.2023 (“Enclosure 12”);

e)Reply to the Statement of Defence and Defence to Amended Counter Claim dated 31.10.2023 (“Enclosure 14”);

f)Notice of Application dated 25.04.2024 (“Enclosure 20”);

g)Affidavit In Support of the application affirmed by Khoay Ghee Teong dated 24.4.2024 (“Enclosure 21”);

h)Plaintiff’s Affidavit In Reply affirmed by Leow Heng Fatt dated 17.05.2024 (“Enclosure 22”); and

i)Defendant’s Affidavit In Reply affirmed by Khoay Ghee Teong dated 30.05.2024 (“Enclosure 23”).

Facts of the Case

[2]Both Plaintiffs are Malaysian who resided at Block 842, Woodlands Street 82, #02-71, Singapore 730842 whereas the Defendant is a private limited company having its registered address at Wisma Tanco, No. 1, Jalan Bandar 1, Pusat Bandar Puchong, 47160, Puchong, Selangor.

[3]The Defendant at all material times is a property developer and had developed a mixed development known as “SPLASH PARK” on a piece of land held under GRN 242590 Lot 5930 GRN 242591 Lot 5931, Pekan Sungai Menyala, Daerah Port Dickson, Negeri Sembilan which includes among others a water amusement park, hotels, service suits, restaurants and food bazaar.

[4]On 22.10.2014 the Plaintiffs had entered into an agreement with the Defendant to purchase parcel B2-01-13 Splash Park Suites (the said unit). According to clause 21.01 of the Sale and Purchase Agreement (SPA) dated 22.10.2014, the delivery of vacant possession of the said units should be handed by the Defendant to the Plaintiffs on 21.10.2018. However, the delivery of Vacant Possession was only handed to the Plaintiffs on 9.9.2022. The Plaintiffs then filed an action via this civil suit for Liquidated Damages for late delivery of vacant possession.

The Application

[5]The Defendant filed this application via enclosure 20 under Order 2 Rule, Order 3 Rule 5, Order 57 Rule 1 and Rule 2 and Order 92 Rule 4 of the Rules of Court 2012 to transfer this proceeding to the Sessions Court at Petaling Jaya, in the state of Selangor for the reasons stated below :

a)The cause of actions by the Plaintiffs are based on the Sale and Purchase Agreement;

b)The Defendant’s registered address is in Selangor;

c)This proceeding should be initiated in Petaling Jaya, Selangor;

d)Forum of Convenience is in Petaling Jaya, Selangor; and

e)The transfer to the Sessions Court at Petaling Jaya will save parties costs and time.

Analysis of The Case and The Court Findings

[6]Before proceeding to the analysis of the application. It is pertinent to state that applications to transfer proceedings from one court to another is being governed by Order 57 Rule 1 of the Rules Of Court 2012.Order 57 Rule 1(1) provides as follows:

1. Transfer of proceedings to another Court (O. 57 r. 1)

(1) Where the Judge of the High Court or a Judge of the Sessions Court or a Magistrate is satisfied that any proceedings in that Court can be more conveniently or fairly tried in some other Court of coordinate jurisdiction, he may on application by any party, order the proceedings to be transferred to the other Court.

[7]Order 57 Rule 1 (4) further states that:

(4) Before making any order to transfer any proceedings from-

(a)the High Court to another High Court of coordinate jurisdiction;

(b)a Subordinate Court to the High Court;

(c)the High Court to a Subordinate Court; or

(d)a Subordinate Court to another Subordinate Court,

the High Court Judge or the Judge of the Sessions Court or Magistrate, as the case may be, shall

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