An interim preservation order protects identifiable funds when serious questions exist regarding liability, preventing irreparable harm during a legal dispute.

Fadzlin Suraya Mohd Suah SCJ:

JUDGMENT

[1]On 9.10,2024 I allowed the plaintiff’s notice of application seeking for an order of ad interim injunction for the preservation of property under Order 29 rule 1 (1) (2) (2A) and rule 2 of the Rules of Court 2012

“a. Bahawa satu perintah Injunksi ad interim bagi penahanan, penjagaaan dan/atau pemeliharaan wang berjumlah RM350,000,00 yang dipegang oleh Defendan Kedua di bawah Perjanjian tersebut dengan mengarahkan Defendan Kedua sama ada secara sendiri, melalui ejen atau pengkhidmatnya atau selainnya hendaklah mendepositkan wang berjumlah RM350,000.00 tersebut kepada Mahkamah atau ke dalam akaun pelanggan firma guaman Plaintif sehingga Mahkamah yang mulia mendengar dan melupuskan permohonan ini;

b. Bahawa satu perintah injunksi bagi penahanan, penjagaan dan/atau pemeliharaan wang berjumlah RM350,000.00 yang dipegang oleh Defendan Kedua di bawah Perjanjian tersebut dengan mengarahkan Defendan Kedua sama ada secara sendiri, melalui ejen atau pengkhidmatnya atau selainnya hendaklah mendepositkan wang berjumlah RM350,000.00 tersebut kepada Mahkamah atau ke dalam akaun firma peguamcara Plaintif sehingga Mahkamah yang mulia mendengar dan melupuskan tuntutan Plaintif dalam tindakan ini;

c. Selanjutnya satu perintah injunksi bahawa bayaran perenggan (a) dan/atau (b) di atas didepositkan oleh Defendan Kedua dalam masa tujuh (7) hari dari tarikh perintah permohonan di sini;

d. Kos permohonan ini ditanggung oleh Defendan Kedua; dan

e. Lain-lain relif atau perintah sebagaimana Mahkamah yang mulia ini fikir adil dan suaimanfaat.”

Background

[2]The subject matter of the application are monies claimed due to the plaintiff from the defendants for the payment made to the second defendant’s company. The second defendant is a company where the first defendant’s son serves as a director.

[3]In her affidavit in support, the plaintiff averred that sometime in 2022, the first Defendant had offered the plaintiff for a joint-venture project to purchase 48 acres of land in Pandan Perdana belonging to Dewan Bandaraya Kuala Lumpur. Parties have also signed an agreement dated 20.12.2022 and agreed to pay RM500,000.00 each.

[4]The Plaintiff also averred that the first defendant had informed her that the second defendant is a company under him and he named his son as the director and share holder of the company representing him in the company.

[5]The Plaintiff had on the instruction of the first defendant deposited RM350,000.00 to the second defendant’s account. The deposits were made by way of two cheques to the second defendant’s account from the Plaintiff’s company account, Star Hygiene & Cleaning Services Sdn Bhd on 23.12.2022 and 9.1.2023.

[6]The Plaintiff averred that the defendants have breached the terms of the agreement when they failed to update the status of the purchase of the property to the plaintiff. The plaintiff on 2.11.2023 terminated the agreement and sued the plaintiff for breach of contract, claiming for the monies deposited to be refunded.

Order 29 rule 2

[10]It is trite law that an order for interim preservation of property is a temporary and discretionary remedy. It aims to preserve the property being the subject matter of an action pending the disposal of the said action. Amarjeet Singh JC (as His Lordship then was) in Karunamoorthy a/l Ramasamy (Trading as Era Hemas Trading) v. Hariharan a/I Subramaniam & Ors [2020] 1 LNS 1400 in discussing the law on preservation held as follows;

“[10] It is established law that an order for interim preservation of property is a temporary and discretionary remedy. It is to preserve the property which is the subject matter of an action pending the disposal of the said action. To consider whether to grant it or to refuse it the Court is not concerned with the chances of success of failure of the plaintiff in proving his civil suit at the forthcoming trial, neither is the Court’s function