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2012 MarsdenLR 1862

FEDERAL COURT PUTRAJAYA
SYED OMAR SYED MOHAMED – Appellant
Versus
PERBADANAN NASIONAL BERHAD – Respondent
[Civil Appeal No: 02( )-77-12-2011 (W)]



A plaintiff cannot file a second action on identical grounds after the first was struck out for non-compliance with a court order, as this constitutes an abuse of process.

Headnote:(A) Rules of High Court 1980 - Order 34 - Abuse of process - Plaintiff filed second suit after first suit struck out for non-compliance with discovery order - High Court found second suit to be an abuse of process - Court of Appeal allowed appeal, reasoning based on distinctions of defaults by the plaintiff - High Court had jurisdiction to dismiss action for want of prosecution on its own motion. (Paras 1, 3, 6, 16, 27)

(B) Procedural fairness - Need for compliance with court orders - Intentional and contumelious conduct by the plaintiff in failing to comply with discovery order therein justified striking out of the action and barring subsequent suit on the same grounds. (Paras 18-26)

Facts of the case:
The plaintiff appealed the High Court's order striking out their second suit, which was based on the same facts as an earlier suit dismissed for the plaintiff's failure to comply with a discovery order. The trial court found intentional delay and an abuse of the court's process by bringing a second action without addressing the previous failure. (Paras 2, 3)

Findings of Court:
The original suit was justifiably struck out for deliberate non-compliance with a court order which the plaintiff acknowledged, thereby making any subsequent similar claim an abuse of process. (Paras 6, 27)

Issues: Whether striking out of the first suit should bar a second suit if limitation periods have not expired, and if non-compliance with a discovery order constituted an abuse of process leading to dismissal. (Paras 7, 27)

Ratio Decidendi: The court determined that non-compliance with a peremptory order resulting in a first suit being struck out warrants dismissal of any ensuing suit on the same grounds, regardless of limitation concerns, reinforcing the necessity to adhere strictly to court procedures. (Paras 10, 16-27)

Result: Appeal allowed; order of the Court of Appeal set aside and High Court's striking out of the suit restored with costs awarded to the appellant.

Judgement Key Points

Key Points: - A plaintiff cannot file a second action on identical grounds after the first was struck out for non-compliance with a court order, as this is considered an abuse of process (!) (!) (!) . - Non-compliance with a discovery order, especially when intentional and contumelious, justifies striking out the action and barring a subsequent suit on the same grounds (!) (!) (!) . - The court has inherent jurisdiction to dismiss an action for want of prosecution, even if the limitation period has not expired (!) (!) . - The High Court has the power to strike out a second suit under Order 34, Rule 3 of the Rules of High Court 1980, regardless of the limitation period (!) (!) . - The appeal was allowed, setting aside the Court of Appeal's order, and restoring the High Court's striking out of the suit with costs awarded to the appellant [Result] (!) (!) .

What are the rights of a plaintiff to file a second suit on identical grounds after the first suit is struck out for non-compliance with a court order?

What constitutes an abuse of process in the context of filing a second suit after the first has been struck out?

Does the expiration of limitation periods affect the court's ability to dismiss a second suit filed on the same grounds?


Table of Content
1. introduction of the appeal context. (Para 1 , 1)
2. facts relating to multiple suits. (Para 2)
3. findings of the high court. (Para 3)

[1] This is an appeal by the appellant against the decision of the Court of Appeal in allowing the respondent's appeal against the decision of the High Court at Kuala Lumpur allowing the appellant's application for the writ and statement of claim of the respondent be struck out with costs. Before the High Court the appellant was the defendant and the respondent was the plaintiff. We shall refer to the parties as they were before the High Court.

Background Facts

[2] The relevant background facts of the case may be summarised as follows:

(i) The plaintiff had filed a suit against the defendant vide Kuala Lumpur High Court suit D1-22-270-2006 ("the 2006 suit") based on the same facts and for the same relief as set out in the present suit D-22NCC-1071-2010 ("the 2010 suit").

(ii) Pursuant to an application by the defendant for discovery of documents in the 2006 suit, an order of Court had been issued against the plaintiff on 31 October 2008 whereby the plaintiff was to file an affidavit to disclose all documents in its possession within a stipulated time.

(iii) The plaintiff did not lodge any appeal against that order of Court in the 2006 suit and neither did the plaintiff comply with the said order. On 25 August 2009 the Court on its own volition issued to the plaintiff a 'notice to show cause" in the 2006 suit as to why the suit should not be struck out as no further action had been taken by the plaintiff on the file.

(iv) On 15 September 2009, the Deputy Registrar proceeded to strike out the 2006 suit upon the hearing of the notice to show cause. Before the Deputy Registrar, the plaintiff counsel's explanation from the bar as regards the delay in prosecuting the action was rejected. The Deputy Registrar in her conclusion held expressly that the plaintiff 's delay in proceeding with the further prosecution of the 2006 suit was an intentional and contumelious default and that was ground enough for the suit to be struck out.

(v) The plaintiff appealed against the Deputy Registrar's decision to the judge in chambers. The learned judge dismissed the appeal. The plaintiff did not file any appeal against the learned judge's decision but chose instead to file this present suit, which for all intents and purposes was a fresh action for the same relief based on the same set of facts. The plaintiff maintained that as no statutory limitation had set in, they were entitled to bring this fresh proceeding against the defendant.

(vi) The defendant then filed an application for the writ and statement of claim of the plaintiff to be struck out with costs.

Findings Of The High Court

[3] On 4 October 2010, the High Court allowed the defendant's application and ordered that the writ and statement of claim in this present suit to be struck out with costs of RM7,500.00. The learned judge of the High Court ruled that the second suit was an abuse of the process of the Court by the plaintiff. The learned judge of the High Court inter alia held that pursuant to O 34 r 3 of the Rules of High 1980 ("RHC 1980") and its inherent jurisdiction, the Court had the power to dismiss an action for want of prosecution. The learned judge agreed with the finding of the Deputy Registrar that the delay of the plaintiff in not prosecuting the 2006 suit was the result of an intentional and contumelious default or conduct of the plaintiff. The learned judge of the High Court further held that the fact that the 2010 suit was filed well before the expiry of the limitation period is of no consequence.

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