ATLANTIS ENGINEERING & CONSTRUCTION SDN BHD 1. ) TAN YU PING 2. ) HEE KAH PAU PIHAK TERKILAN LEOW SUAN YANG

ATLANTIS ENGINEERING & CONSTRUCTION SDN BHD 1. ) TAN YU PING 2. ) HEE KAH PAU PIHAK TERKILAN LEOW SUAN YANG

The third-party notice discloses a prima facie factual nexus (alleged active participation in financial management and joint signatory role) that raises triable issues; strike-out is inappropriate because the claim is not plainly and obviously unsustainable and the grant of derivative leave does not preclude third-party proceedings for contribution under Section 10(1)(c) Civil Law Act 1956; therefore the strike-out application is dismissed and the third-party claim proceeds to trial.

Citation
AA-22NCC-10-05/2024 (Mahkamah Tinggi)
Parties
PLAINTIFF: Atlantis Engineering & Construction Sdn Bhd; DEFENDANT: Tan Yu Ping; DEFENDANT: Hee Kah Pau; THIRD PARTY: Chai Sin Fah; PROPOSED INTERVENER: Leow Suan Yang
Court
High Court
Jurisdiction
Malaysia
Judgment Date
10 February 2026
Case Number
AA-22NCC-10-05/2024 (Mahkamah Tinggi)
Procedural Posture
Derivative Action (company) / Application to Strike Out Third Party Notice (pre Trial)
Outcome
Application to strike out third-party notice dismissed
Legal Topics
Third Party Proceedings, Derivative Action, Contribution/indemnity, Fiduciary Duties, Strike Out Application, Abuse of Process
Source Language
Malay/English
Civil Procedure Company Law Tort Equity Third Party Proceedings Derivative Action Contribution/indemnity Fiduciary Duties +2 more

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Parties

Atlantis Engineering & Construction Sdn Bhd

PLAINTIFF

Tan Yu Ping

DEFENDANT

Hee Kah Pau

DEFENDANT

Chai Sin Fah

THIRD PARTY

Leow Suan Yang

PROPOSED INTERVENER

Procedural Posture

Derivative Action (company) / Application to Strike Out Third Party Notice (pre Trial)

Legal Issues

  1. 1 Whether the defendants may issue a third-party notice against a director in a derivative action
  2. 2 Whether the third-party notice is plainly and obviously unsustainable such that it should be struck out
  3. 3 Whether the Court of Appeal's grant of leave for a derivative action precludes third-party proceedings

Ratio Decidendi

The third-party notice discloses a prima facie factual nexus (alleged active participation in financial management and joint signatory role) that raises triable issues; strike-out is inappropriate because the claim is not plainly and obviously unsustainable and the grant of derivative leave does not preclude third-party proceedings for contribution under Section 10(1)(c) Civil Law Act 1956; therefore the strike-out application is dismissed and the third-party claim proceeds to trial.

Court Disposition

Application to strike out third-party notice dismissed

Orders

  • Enclosure 46 dismissed with costs of RM5,000 in the cause