The undertaking to pay damages for improperly granted injunctions obligates the plaintiff to compensate all resulting losses, irrespective of foreseeability or duration of the injunctions.

[1] In this appeal, four different suits were consolidated, namely Civil Suits No 22-52-2001, 22-94-2001, 22-95-2001 and 22-96-2001. The plaintiff, now the appellant, purportedly brought these four derivative actions on behalf of TK Mining Sdn Bhd and its shareholder. In Suit No 22-52-2001, TK Mining Sdn Bhd appeared as a nominal 3rd defendant. The 1st defendant in all the suits was one Datuk Lim Ah Chap who, at the material times, owned 50% of the shareholding of TK Mining Sdn Bhd with the appellant/plaintiff owning the other 50%. In respect of suit no 22-52-2001, the other defendants were Minat Deras Sdn Bhd, Hormat Abadi Sdn Bhd, Impianox Sdn Bhd, and three other persons (Ahmad Al Kamar bin Mohd Baria, Abdul Halim bin Jalil and Irdawati binti Muhammad Ishak). These three other persons were sued as essentially nominees of Datuk Lim Ah Chap. In respect of the other suits, the defendants, aside from Datuk Lim, were;

(a) 22-94-2001

TK Sawmill Trading Sdn Bhd (as 2nd defendant)

(b) 22-95-2001

Seng Chap Wah Timber Merchant Sdn Bhd (as 2nd defendant)

(c) 22-96-2001

Metro Istimewa Sdn Bhd (as 2nd defendant)

[2] These three other civil suits, like Civil Suit No 22-52-2001, were all instituted as derivative actions for and on behalf of TK Mining Sdn Bhd.

Subject Matter: Assessment And Award Of Damages On Plaintiff's Undertaking To Pay Damages In Relation To Interim Injunctions

[3] This appeal concerned an assessment of damages based on the plaintiff 's undertakings to pay damages in relation to four interim injunctions that had been granted by the High Court in his favour in each of the separate suits mentioned earlier. These interim injunctions were granted on 10 January 2002 on ex parte applications by the plaintiff. All were set aside on 24 January 2002 on ex parte applications being made by the respective defendants. The learned Judicial Commissioner (now Ramly Ali, JCA), in setting aside the injunctions, also ordered that an immediate enquiry into damages arising from the undertaking to pay damages be assessed by the deputy registrar. The decision of the learned Judicial Commissioner is reported in [2002] 2 CLJ 250. The deputy registrar conducted the enquiry which involved 17 witnesses and some 185 pages of notes of evidence. By the registrar's certificate, damages totalling RM17,887,038.70 was awarded to all the respondents.

[4] The plaintiff then appealed to the High Court Judge under O 56 of the Rules of the High 1980. The High Court Judge dismissed the appeal, but reduced the amount of damages marginally to RM17,847,041.60to correct a mathematical error.

[5] The full particulars of the damages ordered to be paid are as follows:

(a) Damages for inconvenience and embarrassment awarded to each of the respondents in the sum of RM20,000 each, totalling RM220,000.

(b) RM15 million as damages to Datuk Lim Ah Chap (the 1st respondent) for losses suffered by TK Mining Sdn Bhd, TK Sawmill Sdn Bhd, Minat Deras Sdn Bhd, Hormat Abadi Sdn Bhd, and Impianox Sdn Bhd. (All these companies comprised companies within the group of companies initially own