KENANGA INVESTMENT BANK BERHAD [No. Syarikat: 197301002193 (15678-H)] SYED MUDZAFFAR BIN SYED ZAINUL ABIDIN (No. K/P: 730719-05-5323/A2488988)

KENANGA INVESTMENT BANK BERHAD [No. Syarikat: 197301002193 (15678-H)] SYED MUDZAFFAR BIN SYED ZAINUL ABIDIN (No. K/P: 730719-05-5323/A2488988)

On the face of the pleadings the counterclaim was obviously unsustainable: the defendant was bound by the plaintiff's clear T&C which authorised sale of securities, set-off and suspension of accounts upon default; the defendant failed to plead or prove negligence or causation and his losses resulted from his own commercial decisions; accordingly the counterclaim disclosed no reasonable cause of action and was frivolous, vexatious and an abuse of process and must be struck out under O.18 r.19.

Citation
WA-B52NCC-419-08/2020 (Mahkamah Sesyen)
Parties
Plaintiff/respondent: Kenanga Investment Bank Berhad; Defendant/appellant: Syed Mudzaffar bin Syed Zainul Abidin
Court
Sessions Court
Jurisdiction
Malaysia
Judgment Date
24 December 2021
Case Number
WA-B52NCC-419-08/2020 (Mahkamah Sesyen)
Procedural Posture
Civil Debt/contract (margin Trading) / Chamber Application to Strike Out Counterclaim Under Order 18 R.19 (attachment 16) Decided in Sessions Court
Outcome
Plaintiff's strike out application allowed; defendant's counterclaim struck out
Legal Topics
Strike Out Under Order 18 R.19, Set Off and Sale of Securities, Margin Trading/default, Negligence Claim Against Broker, Estoppel by Silence, Costs and Interest
Source Language
Malay/English
Contract Civil Procedure Banking and Finance Equity (estoppel) Strike Out Under Order 18 R.19 Set Off and Sale of Securities Margin Trading/default Negligence Claim Against Broker +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 17 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Kenanga Investment Bank Berhad

Plaintiff/respondent

Syed Mudzaffar bin Syed Zainul Abidin

Defendant/appellant

Procedural Posture

Civil Debt/contract (margin Trading) / Chamber Application to Strike Out Counterclaim Under Order 18 R.19 (attachment 16) Decided in Sessions Court

Legal Issues

  1. 1 Whether the defendant's counterclaim discloses a reasonable cause of action
  2. 2 Whether the plaintiff was entitled under its terms and conditions to sell the defendant's securities and set-off proceeds against indebtedness
  3. 3 Whether the defendant proved negligence or causation by the plaintiff/remisier

Ratio Decidendi

On the face of the pleadings the counterclaim was obviously unsustainable: the defendant was bound by the plaintiff's clear T&C which authorised sale of securities, set-off and suspension of accounts upon default; the defendant failed to plead or prove negligence or causation and his losses resulted from his own commercial decisions; accordingly the counterclaim disclosed no reasonable cause of action and was frivolous, vexatious and an abuse of process and must be struck out under O.18 r.19.

Court Disposition

Plaintiff's strike out application allowed; defendant's counterclaim struck out

Orders

  • Counterclaim dated 25.09.2020 struck out pursuant to Order 18 rule 19(1)(a)/(b)/(d) Rules of Court 2012
  • Defendant to pay costs to Plaintiff in the sum of RM2000.00