LITS Solutions Sdn Bhd 1. ) Lai Thiam Sin 2. ) Leading Innovative Technologies & Systems Sdn Bhd

LITS Solutions Sdn Bhd 1. ) Lai Thiam Sin 2. ) Leading Innovative Technologies & Systems Sdn Bhd

The court found special circumstances: compelled payment of the RM18,212,992 judgment would likely force D2 to cease business or liquidate assets and thus render the appeal nugatory; defendants' audited accounts showed inability to meet the judgment and the balance of convenience favored granting a stay. Accordingly the stay of execution pending disposal of the appeal was granted and costs awarded in the cause.

Citation
PA-22NCvC-252-12/2019 (Mahkamah Tinggi)
Parties
Plaintiff: LITS Solutions Sdn. Bhd.; 1st Defendant: Lai Thiam Sin; 2nd Defendant: Leading Innovative Technologies & Systems Sdn. Bhd.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 July 2025
Case Number
PA-22NCvC-252-12/2019 (Mahkamah Tinggi)
Procedural Posture
Civil Suit Arising From a Derivative Action With Related Winding Up Petition / Post Judgment Application for Stay of Execution Pending Appeal to the Court of Appeal
Outcome
Defendants' application for stay of execution under Enclosure 110 allowed
Legal Topics
Stay of Execution, Special Circumstances, Balance of Convenience, Derivative Action, Breach of Fiduciary Duty, Accounting, Winding Up, Interest on Judgment
Source Language
Malay/English
Civil Procedure Company Law Equity Commercial Law Appeals Stay of Execution Special Circumstances Balance of Convenience +5 more

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Parties

LITS Solutions Sdn. Bhd.

Plaintiff

Lai Thiam Sin

1st Defendant

Leading Innovative Technologies & Systems Sdn. Bhd.

2nd Defendant

Procedural Posture

Civil Suit Arising From a Derivative Action With Related Winding Up Petition / Post Judgment Application for Stay of Execution Pending Appeal to the Court of Appeal

Legal Issues

  1. 1 Whether special or exceptional circumstances exist to justify a stay of execution pending appeal
  2. 2 Whether the defendants' payment of the judgment would render the appeal nugatory
  3. 3 Where the balance of convenience lies

Ratio Decidendi

The court found special circumstances: compelled payment of the RM18,212,992 judgment would likely force D2 to cease business or liquidate assets and thus render the appeal nugatory; defendants' audited accounts showed inability to meet the judgment and the balance of convenience favored granting a stay. Accordingly the stay of execution pending disposal of the appeal was granted and costs awarded in the cause.

Court Disposition

Defendants' application for stay of execution under Enclosure 110 allowed

Orders

  • Stay of execution of the High Court Order dated 23 December 2024 pending final disposal of the Defendants' appeal to the Court of Appeal
  • Costs in the cause