Tan Sri Dr Mohd Irwan Serigar Bin Abdullah 1. ) DATUK KAMAL BIN MOHD ALI 2. ) DATO' SERI NORAZMAN BIN AYOB

Tan Sri Dr Mohd Irwan Serigar Bin Abdullah 1. ) DATUK KAMAL BIN MOHD ALI 2. ) DATO' SERI NORAZMAN BIN AYOB

The Court of Appeal held the Judicial Commissioner misdirected himself in striking out the third‑party notices against Azmi, Kamal and Norazman: the pleadings disclosed arguable causes of action for contribution/indemnity that require trial to determine issues of participation/procurement; delay was not inordinate in the factual matrix given document disputes and Mat Abu authority; therefore the High Court orders setting aside the third‑party notices were set aside and the third‑party proceedings reinstated.

Citation
W-02(IM)(NCvC)-1572-09/2024 (Mahkamah Rayuan)
Parties
Appellant (2nd Defendant in Suit WA 22 Ncv C 338 05/2021): Tan Sri Dr Mohd Irwan Serigar bin Abdullah; Respondent (third Party 1): Datuk Kamal bin Mohd Ali; Respondent (third Party 2): Dato' Seri Norazman bin Ayob; Respondent (third Party 3): Azmi bin Tahir; Plaintiff (high Court Suit WA 22 Ncv C 338 05/2021): 1Malaysia Development Berhad (1MDB); Defendant (1st Defendant in Suit WA 22 Ncv C 338 05/2021): Arul Kanda A/L Kandasamy
Court
IM
Jurisdiction
Malaysia
Judgment Date
6 November 2024
Case Number
W-02(IM)(NCvC)-1572-09/2024 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal From High Court (third Party Proceedings) / Court of Appeal Judgment (appeal Heard and Determined)
Outcome
Appeals allowed; High Court decision dated 6 September 2024 in respect of Enclosures 236 and 241 set aside; applications by Third Parties to strike out third‑party proceedings dismissed.
Legal Topics
Breach of Fiduciary Duty, Indemnity and Contribution, Third‑party Notice/third‑party Proceedings, Strike Out for Delay, Collective Board Responsibility
Source Language
Malay/English
Company Law Fiduciary Duty Equity Civil Procedure Administrative/board Governance Breach of Fiduciary Duty Indemnity and Contribution Third‑party Notice/third‑party Proceedings +2 more

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Parties

Tan Sri Dr Mohd Irwan Serigar bin Abdullah

Appellant (2nd Defendant in Suit WA 22 Ncv C 338 05/2021)

Datuk Kamal bin Mohd Ali

Respondent (third Party 1)

Dato' Seri Norazman bin Ayob

Respondent (third Party 2)

Azmi bin Tahir

Respondent (third Party 3)

1Malaysia Development Berhad (1MDB)

Plaintiff (high Court Suit WA 22 Ncv C 338 05/2021)

Arul Kanda A/L Kandasamy

Defendant (1st Defendant in Suit WA 22 Ncv C 338 05/2021)

Procedural Posture

Civil Appeal From High Court (third Party Proceedings) / Court of Appeal Judgment (appeal Heard and Determined)

Legal Issues

  1. 1 Whether third‑party claims disclosed a reasonable cause of action to remain in the main suit
  2. 2 Whether the third‑party applications were inordinately delayed and an abuse of process
  3. 3 Whether fellow directors/non‑executive directors can be joined as joint tortfeasors for contribution/indemnity

Ratio Decidendi

The Court of Appeal held the Judicial Commissioner misdirected himself in striking out the third‑party notices against Azmi, Kamal and Norazman: the pleadings disclosed arguable causes of action for contribution/indemnity that require trial to determine issues of participation/procurement; delay was not inordinate in the factual matrix given document disputes and Mat Abu authority; therefore the High Court orders setting aside the third‑party notices were set aside and the third‑party proceedings reinstated.

Court Disposition

Appeals allowed; High Court decision dated 6 September 2024 in respect of Enclosures 236 and 241 set aside; applications by Third Parties to strike out third‑party proceedings dismissed.

Orders

  • Set aside High Court decision dated 6 September 2024 in respect of High Court Enclosure 236 and Enclosure 241
  • Dismissed the applications by Datuk Kamal and Dato' Seri Norazman (High Court Enclosure 236)