Professional Documents
Culture Documents
BETWEEN
AND
GROUNDS OF JUDGMENT
The Application
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[3] The First Plaintiff’s claim is for general and special damages as
a result of a motor accident (“the Accident”) on 15 September
2016, between motorcycle bearing registration number JLJ 4647
which he was riding, and a lorry bearing registration number
WCF 7617 (“the Lorry”) owned by the Fourth Defendant and
driven by the First Defendant. The Second Plaintiff (who is the
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[4] As a result of the accident, the First Plaintiff was paralysed and
the Second Plaintiff suffered nervous shock upon hearing of
such news.
[5] The Plaintiffs’ case was that, if not for Fifth Defendant’s
breaches of sections 308-311 of the Companies Act 1965 (“the
Companies Act”), the Fourth Defendant’s name would have been
struck off the Register as prescribed by section 308(4) of the
Companies Act (found in section 549 of the Companies Act
2016), and as such, the Lorry would have been disposed of by
the Fifth Defendant, as stipulated in section 311 of the
Companies Act (found in section 558 of the Companies Act
2016). The Lorry, therefore, would not have been driven by the
First Defendant fraudulently without insurance, and
consequently, the accident would never have happened.
The Law
[6] The law on striking out is trite and has been distilled by
Mohamed Dzaiddin SCJ (as he then was) in the Supreme Court
case of Bandar Builder Sdn Bhd & Ors v. United Malayan
Banking Corporation Bhd [1993] 4 CLJ 7, [1993] 3 MLJ 36, in
the following words:
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[Emphasis added.]
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[Emphasis added.]
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[9] It was further explained by Ramly Ali JCA in the same case:
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[Emphasis added.]
[10] It is, therefore, well established that the power of the Court to
strike out is exercised only when a claim is obviously
unsustainable, and that such power should be invoked sparingly
(see Affin Bank Bhd v. Eye Bee Sdn Bhd [2005] 1 LNS 291,
[2005] 7 MLJ 1; and Metroplex Holdings Sdn Bhd v. Commerce
International Merchant Bankers Bhd [2013] 8 CLJ 329, [2013] 4
MLJ 520).
[11] The Plaintiffs’ case is that, based on a search on the Lorry at the
Road Transport Department (“JPJ”), the Fourth Defendant was
not covered by insurance; and a further search at the Companies
Commission of Malaysia (“SSM”) revealed that a letter dated 29
April 2013 (exhibited as PBS-7 attached to the Affidavit-in-
Reply of the Plaintiffs dated 10 September 2019, deposed to by
the Second Plaintiff) was issued to the Fourth Defendant
pursuant to section 308(1) of the Companies Act. This was
followed by another letter dated 23 October 2015 (exhibited as
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[13] The Plaintiffs’ submitted that the Fifth Defendant had breached
his statutory duty by failing to strike the Fourth Defendant’s
name off the Register as prescribed by section 308(4) of the
Companies Act. Section 308 reads:
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a. no liquidator is acting;
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[14] The Plaintiffs further claimed that since the letter dated 29 April
2013 was sent to the Fourth Defendant, the Fifth Defendant
should have, therefore, proceeded under section 308(4) of the
Companies Act to publish a notice in the Gazette when the
Fourth Defendant did not show any ‘cause to the contrary’
within 30 days from the material date, that is, 29 April 2013. By
virtue of such publication, the Fourth Defendant should have
been dissolved; and upon such dissolution, pursuant to section
310(1) of the Companies Act, the Lorry would have vested in
the Fifth Defendant, to be disposed of according to section 311
of the Companies Act.
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************
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************
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[17] The gist of the Fifth Defendant’s submission was that he was not
liable for the damages claimed by the Plaintiffs since he was not
involved in this accident at all; that he was only responsible for
striking the Fourth Defendant’s name off the Register; and that
he was protected from liability since such responsibility was
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[18] The Fifth Defendant also submitted that the letter dated 23
October 2015 was sent pursuant to section 308(2) of the
Companies Act, and that by virtue of such provision, the Fourth
Defendant was not dissolved as at 15 September 2016, that is,
the date of the Accident.
[20] It is also pertinent to note that at this juncture, the issue for
consideration is not whether the Fifth Defendant is liable for
breach of its statutory duties, but whether the Plaintiffs have a
reasonable cause of action.
[21] The Plaintiffs have also prayed for the following declarations,
namely,
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not and even if a cause of action did not exist at the time of
filing the application’: per Low Hop Bing JCA in Dato’ Raja
Ideris Raja Ahmad & Ors v. Teng Chang Kim & Ors [2012] 2
CLJ 288, CA. Although the Court of Appeal was overruled by
the Federal Court in Teng Chang Kim & Ors v. Dato’ Raja
Ideris Raja Ahmad & Ors [2014] 3 CLJ 173, the restatement by
the Court of Appeal on the declaratory powers of the High Court
remains good law.
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[27] The Plaintiff’s Statement of Claim and the Reply to the Defence
of the Fifth Defendant reveal that the pleadings contain an
allegation of facts and issues of law which are necessary to be
ventilated at trial. The Plaintiffs have established that their
cause of action against the Fifth Defendant is not “hopeless,
baseless or without foundation in law”; and is not a case that is
“obviously unsustainable”; and is neither scandalous or
frivolous and vexatious. There are triable issues of whether the
Fifth Defendant had breached his statutory duty by failing to
strike the Fourth Defendant’s name off the Register, and selling
the Lorry after the Fourth Defendant was dissolved, as provided
by the Companies Act.
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Conclusion
[30] Bearing in mind that the power of the Court to strike out has
been described as ‘drastic’ and ought to be exercised with
‘utmost caution’: per Seah J in Lee Nyan Choi v. Voon Noon
[1979] 2 MLJ 28, FC, after careful consideration of both oral
and documentary evidence, as well as submissions by Counsel
for both parties, in my view, the Plaintiffs’ case is not an
obviously unsustainable one.
[31] The Application is, therefore, dismissed with costs in the sum of
MYR2,000 (subject to allocatur fees).
COUNSEL:
For the fifth defendant – Rizal Jafry Isa (Legal Officer); Suruhanjaya
Syarikat Malaysia
Affin Bank Bhd v. Eye Bee Sdn Bhd [2005] 1 LNS 291, [2005] 7
MLJ 1
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Dato’ Raja Ideris Raja Ahmad & Ors v. Teng Chang Kim & Ors
[2012] 2 CLJ 288
See Thong & Anor v. Saw Beng Chong [2013] 3 MLJ 235
Teng Chang Kim & Ors v. Dato’ Raja Ideris Raja Ahmad & Ors
[2014] 3 CLJ 173
Affin Bank Bhd v. Eye Bee Sdn Bhd [2005] 1 LNS 291, [2005] 7 MLJ
1
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Dato' Raja Ideris Raja Ahmad & Ors v. Teng Chang Kim & Ors
[2012] 2 CLJ 288
See Thong & Anor v. Saw Beng Chong [2013] 3 MLJ 235
Teng Chang Kim & Ors v. Dato' Raja Ideris Raja Ahmad & Ors
[2014] 3 CLJ 173
Companies Act 2016, ss. 308(1)(2)(4), 310, 311, 318, 549, 558
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