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2010 MarsdenLR 3087

COURT OF APPEAL PUTRAJAYA
EVERISE HECTARES SDN BHD – Appellant
Versus
CITIBANK BHD – Respondent
[Civil Appeal No: W-02-951-2006]



Amendment applications raising issues already resolved are barred by res judicata, indicating abuse of process and lack of bona fides in delay.

Headnote:(A) Civil Procedure - Amendment Applications - Res Judicata - Bad Faith - Appeal dismissed due to appellant's delay in filing amendment application to add second defendant and prevent auction of land, which was previously rejected - High Court deemed the amendment as an abuse of process stating it raised issues already adjudicated, thus res judicata applied - Delay of 7 months 27 days noted as unreasonable and indicative of bad faith - Respondent bank was allowed to proceed with auction as no appeal was made against prior injunction dismissal. (Paras 2, 28-29, 50-51)

(B) Constitutional Law - Locus Standi - Respondent bank’s objection to amendment application based on sufficient interest established - It was found that appellant's argument against respondent’s locus standi was unfounded. (Paras 44-48)

Facts of the case:
Appellant defaulted on housing loan and sought to prevent subsequent public auction by filing amendment application after initial injunction was dismissed, remaining idle and failing to appeal. (Paras 4-10)

Findings of Court:
High Court concluded the amendment lacked merit and was made in bad faith, requiring dismissal of the appeal with costs awarded to the respondent bank. (Paras 51-52)

Issues: Whether the amendment application raised previously adjudicated issues thus falling under res judicata, and whether the delay constituted bad faith. (Paras 12, 49)

Ratio Decidendi: Amendment application dismissed as it sought to re-litigate issues already decided in an earlier proceeding, illustrating principles of res judicata and abuse of process. (Paras 25, 50)

Result: Appeal dismissed with costs.

Table of Content
1. application for amendment and appeal process. (Para 1 , 2 , 3)
2. background on loan and auction proceedings. (Para 4 , 5 , 6 , 7 , 8)
3. issues of res judicata related to amendment application. (Para 11 , 12 , 13 , 14)
4. res judicata and finality of judgments. (Para 18 , 19 , 20)
5. defining cause of action in relation to res judicata. (Para 21 , 22 , 23 , 24)
6. application of res judicata in litigation. (Para 25 , 26 , 27)
7. characterization of amendment as abuse of process. (Para 28 , 29 , 30)
8. delay and lack of bona fide in filing application. (Para 31 , 32 , 33)
9. tactical maneuvers in legal proceedings. (Para 34 , 35 , 36 , 37)
10. locus standi of parties in amendment application. (Para 44 , 45 , 46 , 47 , 48)
Abdul Malik Ishak JCA:

Introduction

[1] The appellant (Everise Hectares Sdn Bhd) applied by way of a summons in chambers dated 5 July 2005 to amend the originating summons to add Fenomena Kualiti Sdn Bhd as the second defendant (hereinafter referred to as the "amendment application") and, at the same time, to prevent the proposed second defendant from taking possession or dealing with the bungalow land at Lot number DIB 21, Kelab Golf Sultan Abdul Aziz Shah, phase 2, Selangor held under a master title vide HS(D) 59439, PT no: 286, Mukim Damansara, daerah Petaling, Negeri Selangor (hereinafter referred to as the "said land").

[2] On 11 August 2006, the learned High Court judge dismissed the amendment application. Aggrieved, the appellant appealed to this Court.

[3] The respondent bank (Citibank Berhad) vehemently opposed the present appeal before us.

The Background Facts

[4] The appellant secured a housing loan in the sum of RM1.5 million for the purpose of purchasing the said land from the respondent bank. The appellant defaulted and the respondent bank decided to sell the said land by way of a public auction.

[5] On 14 February 2004, the appellant filed an application for an injunction (hereinafter referred to as the "first injunction application") to prevent the respondent bank from proceeding with the public auction of the said land.

[6] All the relevant issues pertaining to the first injunction application were ventilated by the parties fully before the learned High Court judge. Affidavits and written submissions were also filed in respect of the first injunction application.

[7] On 17 August 2004, the learned High Court judge heard the first injunction application and his Lordship dismissed it with costs.

[8] Since the path was clear, the respondent bank proceeded with the public auction of the said land. This was on 8 November 2004. And the said land was successfully sold by way of a public auction to Fenomena Kualiti Sdn Bhd at the price of RM1,548,603.

[9] Zakir Basree bin Abdul Rahman affirmed an affidavit on 5 July 2005. From his affidavit at paras. 5 and 6, it was deposed that the appellant was aware of the date of the public auction and had sent an agent to attend but the appellant's agent did not participate in the public auction exercise.

[10] When the said land was finally auctioned off to Fenomena Kualiti Sdn Bhd on 8 November 2004, the appellant remained passive and idle and took exactly 7 months 27 days to file the amendment application on 5 July 2005.

[11] The written grounds of judgment of the learned High Court judge set out in extenso as to why his Lordship dismissed the amendment application and we can do no better than to make reference to them. This was what his Lordship said:

(a) That the grounds in support of the amendment application were similar to the grounds raised in the first injunction application which had already been decided by the High Court. Thus, the issues raised in the amendment application were res judicata . In any event, the appellant did not appeal against the dismissal of the first injunction application.

(b) That the amendment application was made in bad faith and constituted an abuse of the process of the Court because it indirectly sought to prevent the respondent b

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