1. CHOONG YOON CHOI (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U) 2. FRANCIS CHOONG WEN CHUNG (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U) 1. CHONG LEONG SHEN 2. YU TUA WEE 3. YU SZE HOU

1. CHOONG YOON CHOI (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U) 2. FRANCIS CHOONG WEN CHUNG (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U) 1. CHONG LEONG SHEN 2. YU TUA WEE 3. YU SZE HOU

The High Court allowed the appeal, holding that the amended statement of claim pleaded sufficient facts (paras 15-19) to raise special circumstances and pleaded fraud/unconscionable conduct requiring full trial; the Sessions Court erred in striking out the pleadings summarily because the issues were not plainly and obviously unsustainable and should be resolved at trial.

Citation
JA-12ANCvC-33-10/2020 (Mahkamah Tinggi)
Parties
Appellant/plaintiff: CHOONG YOON CHOI (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U)); Appellant/plaintiff: FRANCIS CHOONG WEN CHUNG (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U)); Respondent/second to Fourth Defendant: CHONG LEONG SHEN; Respondent/second to Fourth Defendant: YU TUA WEE; Respondent/second to Fourth Defendant: YU SZE HOU
Court
High Court
Jurisdiction
Malaysia
Judgment Date
22 July 2021
Case Number
JA-12ANCvC-33-10/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / Appeal From Sessions Court Striking Out Order
Outcome
Appeal allowed with costs; striking out order set aside and matter remitted for trial
Legal Topics
Lifting Corporate Veil, Striking Out Pleadings Under Order 18 R.19 ROC, Fraud in Equity, Unconscionable Conduct, Particulars of Fraud
Source Language
Malay/English
Company Law Civil Procedure Contract Equity Lifting Corporate Veil Striking Out Pleadings Under Order 18 R.19 ROC Fraud in Equity Unconscionable Conduct +1 more

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Parties

CHOONG YOON CHOI (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U))

Appellant/plaintiff

FRANCIS CHOONG WEN CHUNG (berniaga sebagai Wang Lee Seafood Trading (JM0583147-U))

Appellant/plaintiff

CHONG LEONG SHEN

Respondent/second to Fourth Defendant

YU TUA WEE

Respondent/second to Fourth Defendant

YU SZE HOU

Respondent/second to Fourth Defendant

Procedural Posture

Civil Appeal / Appeal From Sessions Court Striking Out Order

Legal Issues

  1. 1 Whether the pleadings disclosed special circumstances to lift the corporate veil of the first defendant
  2. 2 Whether fraud was pleaded with sufficient particulars to proceed to trial
  3. 3 Whether striking out under Order 18 r.19 of the Rules of Court 2012 was appropriate in the circumstances

Ratio Decidendi

The High Court allowed the appeal, holding that the amended statement of claim pleaded sufficient facts (paras 15-19) to raise special circumstances and pleaded fraud/unconscionable conduct requiring full trial; the Sessions Court erred in striking out the pleadings summarily because the issues were not plainly and obviously unsustainable and should be resolved at trial.

Court Disposition

Appeal allowed with costs; striking out order set aside and matter remitted for trial

Orders

  • Appeal allowed with costs
  • Order of Sessions Court striking out the Plaintiffs' pleadings set aside