Golden Pavilion Development Sdn Bhd 1. Jasa Panorama Sdn Bhd 2. Sycal Park Sdn Bhd 3. Seow Yong Chin

Golden Pavilion Development Sdn Bhd 1. Jasa Panorama Sdn Bhd 2. Sycal Park Sdn Bhd 3. Seow Yong Chin

The Statement of Claim, insofar as it concerned the Third Defendant, did not disclose a reasonable cause of action: the Third Defendant was not a party to the marketing agreement, there were no pleaded necessary particulars showing misrepresentation or inducement by him, and mere receipt of funds into his account as a director was insufficient to found personal liability; accordingly the claim against the Third Defendant was struck out under Order 18 r.19(1)(a) as obviously unsustainable and constituted an abuse of process.

Citation
22NCC-564-10/2019 (Mahkamah Tinggi)
Parties
Plaintiff: GOLDEN PAVILION DEVELOPMENT SDN BHD; Defendant 1: JASA PANORAMA SDN BHD; Defendant 2: SYCAL PARK SDN BHD (formerly Cygal Construction Sdn Bhd); Defendant 3: SEOW YONG CHIN
Court
High Court
Jurisdiction
Malaysia
Judgment Date
5 February 2020
Case Number
22NCC-564-10/2019 (Mahkamah Tinggi)
Procedural Posture
Civil (commercial) High Court / Strike‑out Applications Under Order 18 R.19 Filed After Memorandum of Appearance and Before Statement of Defence; Interlocutory Judgment
Outcome
Application by Third Defendant allowed; writ and Statement of Claim against Third Defendant struck out with costs. Applications by First and Second Defendants to strike out dismissed with costs.
Legal Topics
Strike Out, Misrepresentation, Locus Standi, Failure of Consideration, Directors' Personal Liability, Abuse of Process
Source Language
Malay/English
Contract Civil Procedure Restitution Company Law Strike Out Misrepresentation Locus Standi Failure of Consideration +2 more

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Parties

GOLDEN PAVILION DEVELOPMENT SDN BHD

Plaintiff

JASA PANORAMA SDN BHD

Defendant 1

SYCAL PARK SDN BHD (formerly Cygal Construction Sdn Bhd)

Defendant 2

SEOW YONG CHIN

Defendant 3

Procedural Posture

Civil (commercial) High Court / Strike‑out Applications Under Order 18 R.19 Filed After Memorandum of Appearance and Before Statement of Defence; Interlocutory Judgment

Legal Issues

  1. 1 Whether the Statement of Claim discloses a reasonable cause of action against the Third Defendant
  2. 2 Whether the Third Defendant can be held personally liable for alleged breach of the marketing agreement or misrepresentation
  3. 3 Whether the pleadings are frivolous, vexatious or an abuse of process warranting strike out under Order 18 r.19

Ratio Decidendi

The Statement of Claim, insofar as it concerned the Third Defendant, did not disclose a reasonable cause of action: the Third Defendant was not a party to the marketing agreement, there were no pleaded necessary particulars showing misrepresentation or inducement by him, and mere receipt of funds into his account as a director was insufficient to found personal liability; accordingly the claim against the Third Defendant was struck out under Order 18 r.19(1)(a) as obviously unsustainable and constituted an abuse of process.

Court Disposition

Application by Third Defendant allowed; writ and Statement of Claim against Third Defendant struck out with costs. Applications by First and Second Defendants to strike out dismissed with costs.

Orders

  • Writ and Statement of Claim against Third Defendant (Seow Yong Chin) struck out.
  • Third Defendant awarded costs of the strike‑out application.