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Challenging Striking Out Orders in Malaysia for Litigation Claims Under RM250,000

Can You Appeal a Striking Out Order in Malaysia if the Claim is Less Than RM250,000?

In the fast-paced world of Malaysian litigation, facing a striking out order can feel like a devastating blow to your case. But what if your claim involves a sum less than RM250,000? A common question arises: In Malaysia, if the sum is less than 250k, can we appeal against striking out? The short answer is yes—generally, there is no explicit statutory or procedural bar based solely on the monetary value. This blog post dives deep into the legal principles, key cases, and practical steps to help you understand your options.

Whether you're a business owner defending a contract dispute or an individual pursuing a claim, knowing your appeal rights is crucial. We'll explore the Rules of Court 2012, landmark judgments, and insights from recent sources to provide clarity. Note: This is general information and not specific legal advice. Consult a qualified Malaysian lawyer for your situation.

Understanding Striking Out Pleadings in Malaysia

Striking out is a drastic judicial remedy under Order 18 Rule 19 of the Rules of Court 2012 (ROC 2012). Courts use it to dismiss pleadings that are plainly unsustainable, frivolous, or disclose no reasonable cause of action. As established in multiple cases, this power is exercised sparingly: The law on striking out is settled... the principle for striking

YAP CHEE SIANG vs NG BAK HING & ORS

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The threshold is high—a plain and obvious case where the claim has no chance of success. Importantly, the monetary value of the claim does not factor into whether striking out applies or whether an appeal is possible. Courts focus on the merits, not the sum involved.

No Monetary Threshold for Appeals Against Striking Out

Contrary to some misconceptions, Malaysian law does not impose a RM250,000 threshold restricting appeals against striking out orders. The right to appeal exists regardless of the claim amount, provided you comply with procedural rules and articulate strong grounds.

Key legal findings confirm this:- Appeals are permissible if the striking out was inappropriate, such as when the claim discloses a reasonable cause of action.- Procedural rules under ROC 2012 do not specify any monetary limit for such appeals; the focus remains on unsustainability

SARASWATHI NADARAJAN vs KH KHOON CONSTRUCTION SDN BHD

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In Tan Wei Hong & Ors v. Malaysia Airlines Berhad, a Federal Court case reviewed extensively, the court reiterated: A review of the law on striking out is found in the Federal Court case of Tan Wei Hong & Ors v. Malaysia Airlines Berhad

SARASWATHI NADARAJAN vs KH KHOON CONSTRUCTION SDN BHD

. This underscores that striking out is for clearly untenable cases, and appeals are available to challenge such decisions irrespective of value.

Another source affirms: The High Court and the Court of Appeal were right in holding that the respondents' action was not obviously unsustainable and dismissed the appellant's application for striking out

YAP CHEE SIANG vs NG BAK HING & ORS

. These principles apply universally, without reference to claim size.

Key Cases Clarifying Appeal Rights

Malaysian jurisprudence consistently supports appeals against striking out:

Tan Wei Hong & Ors v. Malaysia Airlines Berhad (2019)

This pivotal case, cited in multiple judgments, holds that striking out is a summary and drastic remedy used only in clear cases. The Court of Appeal in a related matter dismissed a striking out application because the claim was not obviously unsustainable

YAP CHEE SIANG vs NG BAK HING & ORS

. Appeals were pursued successfully, demonstrating no monetary bar.

Application of Order 18 Rule 19 ROC 2012

In a construction dispute, the Sessions Court struck out a defense and counterclaim for a RM1.65 million contract, finding it unsustainable. The appeal was dismissed not due to amount, but because no reasonable cause was shown: The application to strike out the Defence and Counterclaim was upheld as D's Defence was found to disclose no reasonable cause of action and was unsustainable

SARASWATHI NADARAJAN vs KH KHOON CONSTRUCTION SDN BHD

. This illustrates that appeals proceed on merits, even for substantial sums—implying smaller claims face no extra hurdles.

While some international sources mention monetary limits (e.g., in Indian Motor Vehicles Act cases under Rs.10,000 2008 0 Supreme(Kar) 526), these do not apply in Malaysia. Malaysian courts prioritize procedural compliance over value.

Procedural Steps for Appealing a Striking Out Order

To appeal effectively:1. File Within Time Limits: Typically 14 days for High Court orders to Court of Appeal (ROC 2012, Order 55).2. Articulate Grounds: Demonstrate the claim is not plainly unsustainable—cite facts showing a triable issue.3. Seek Leave if Needed: For interlocutory orders, obtain leave to appeal.4. Comply with Fees and Documents: No specific fee waiver or bar for low-value claims.

Courts exercise discretion but have held: The courts have consistently held that the power to strike out is a summary and drastic remedy, exercised only in clear and obvious cases

YAP CHEE SIANG vs NG BAK HING & ORS

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Practical Limitations and Exceptions

While no absolute monetary bar exists, challenges include:- Court Discretion: Appeals may fail if grounds are weak.- Costs: Lower sums might not justify appeal costs, but legally possible.- Substantial Points: Must raise arguable law or fact issues.

In practice, as in the RM1.65 million case, appeals are dismissed on substance, not sum: D's appeal against the decision to strike out was dismissed

SARASWATHI NADARAJAN vs KH KHOON CONSTRUCTION SDN BHD

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Recommendations for Litigants

  • Assess Merits Early: Before striking out, amend pleadings to avoid dismissal.
  • Document Triable Issues: Build a record showing your claim's viability.
  • Seek Legal Counsel: A lawyer can draft robust appeal grounds.
  • Consider Alternatives: Mediation or summary judgment might resolve disputes faster.

If your claim is under RM250,000, don't assume appeal rights are lost—focus on compliance and merits.

Conclusion and Key Takeaways

In summary, Malaysian courts permit appeals against striking out orders regardless of whether the sum is less than RM250,000. The governing principles under ROC 2012 Order 18 Rule 19 emphasize case sustainability over monetary value, as reinforced in cases like Tan Wei Hong v. Malaysia Airlines Berhad

SARASWATHI NADARAJAN vs KH KHOON CONSTRUCTION SDN BHD

and others

YAP CHEE SIANG vs NG BAK HING & ORS

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Key Takeaways:- No explicit RM250k threshold blocks appeals.- Success hinges on proving the claim is not plainly unsustainable.- Always file promptly and seek professional advice.

This positions you to protect your rights effectively. For tailored guidance, contact a Malaysian legal expert.

Disclaimer: This article provides general insights based on public legal sources and is not a substitute for professional legal advice.

#MalaysiaLaw, #StrikingOutAppeal, #LegalMalaysia
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