Hong Sheng Engineering Sdn Bhd Multilink Resources Sdn Bhd

Hong Sheng Engineering Sdn Bhd Multilink Resources Sdn Bhd

The counterclaim was not struck out because it was not plainly or obviously unsustainable on its face; the pleadings disclose a possible cause of action (goods not of merchantable quality/fit for purpose) and disputed factual issues (including alleged RM13,000 materials) require trial-level testing; balance of justice favoured allowing the counterclaim to proceed; therefore the Magistrates Court's striking out order was set aside and the matter remitted for case management.

Citation
PA-11ANCC-2-01/2022 (Mahkamah Tinggi)
Parties
Appellant / First Defendant: HONG SHENG ENGINEERING SDN BHD; Respondent / Plaintiff: MULTILINK RESOURCES SDN BHD; Second Defendant: NG GIM HOOI
Court
High Court
Jurisdiction
Malaysia
Judgment Date
14 March 2024
Case Number
PA-11ANCC-2-01/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal Against Striking Out Order / Judgment on Appeal (high Court)
Outcome
Appeal allowed in part; Magistrates Court striking out order set aside; matter remitted to Magistrates Court for case management and trial; costs awarded.
Legal Topics
Striking Out, Order 18 Rule 19 ROC, Merchantable Quality, Damages, Abuse of Process
Source Language
Malay/English
Civil Procedure Contract Sale of Goods Striking Out Order 18 Rule 19 ROC Merchantable Quality Damages Abuse of Process

Case Brief

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Parties

HONG SHENG ENGINEERING SDN BHD

Appellant / First Defendant

MULTILINK RESOURCES SDN BHD

Respondent / Plaintiff

NG GIM HOOI

Second Defendant

Procedural Posture

Civil Appeal Against Striking Out Order / Judgment on Appeal (high Court)

Legal Issues

  1. 1 Whether the counterclaim discloses a reasonable cause of action under O 18 r 19 ROC
  2. 2 Whether the counterclaim is scandalous, frivolous or vexatious
  3. 3 Whether the counterclaim may prejudice, delay or embarrass the fair trial of the suit

Ratio Decidendi

The counterclaim was not struck out because it was not plainly or obviously unsustainable on its face; the pleadings disclose a possible cause of action (goods not of merchantable quality/fit for purpose) and disputed factual issues (including alleged RM13,000 materials) require trial-level testing; balance of justice favoured allowing the counterclaim to proceed; therefore the Magistrates Court's striking out order was set aside and the matter remitted for case management.

Court Disposition

Appeal allowed in part; Magistrates Court striking out order set aside; matter remitted to Magistrates Court for case management and trial; costs awarded.

Orders

  • Appeal allowed
  • Magistrates Court order dated 19.1.2022 set aside