DALAM MAHKAMAH PERSEKUTUAN MALAYSIA

(BIDANGKUASA RAYUAN)

RAYUAN SIVIL NO.:  08-32-1996 (W)

 

 

 

ANTARA

 

ALLIED CAPITAL SDN BHD                                 PEMOHON/PERAYU

 

DAN

 

MOHD LATIF BIN SHAH MOHD

Setiausaha

Kelab Raintree Kuala Lumpur

(Disaman sebagai pegawai berdaftar Kelab)           RESPONDEN

 

 

 

&

 

DALAM MAHKAMAH PERSEKUTUAN MALAYSIA

(BIDANGKUASA RAYUAN)

RAYUAN SIVIL NO.:  08-34-1996 (W)

 

 

 

ANTARA

 

1.   TENGKU ABDULLAH IBNI SULTAN ABU BAKAR

2.   YUSOF BIN ABU BAKAR

3.   JOHN LOW NYAP HENG

4.   YEOH CHONG SWEE

5.   LEONARD THAM

6.   TENGKU AZLAN

7.   ABDUL KADIR KASSIM                            PEMOHON-

8.   CLIFFORD TAN                                              PEMOHON /

9.   LT. COL. ZARAZILLAH                                  PERAYU-PERAYU

 

DAN

 

1.   MOHD LATIF BIN SHAH MOHD

2.   MOHD ALI BIN MOHD DEWAL

3.   DAVID SIEW WAI KEONG

      (Mendakwa bagi pihak mereka sendiri dan

      semua ahli Kelab Raintree Kuala Lumpur  RESPONDEN-

      yang lain kecuali Perayu-Perayu)                     RESPONDEN

 

 

 

[Dalam Perkara Mahkamah Rayuan Di Kuala Lumpur

(Bidangkuasa Rayuan)

Rayuan Sivil No. W-02-109-1995]

 

Antara

 

1.   Tengku Abdullah Ibni Sultan Abu Bakar

2.   Yusof Bin Abu Bakar

3.   John Low Nyap Heng

4.   Yeoh Chong Swee

5.   Leonard Tham

6.   Tengku Azlan

7.   Abdul Kadir Kassim

8.   Clifford Tan                                                  Pemohon-Pemohon/

9.   Lt. Col. Zarazillah                                             Perayu-Perayu

 

 

Dan

 

1.   Mohd Latif Bin Shah Mohd

2.   Mohd Ali Bin Mohd Dewal

3.   David Siew Wai Keong

      (Mendakwa bagi pihak mereka sendiri dan

      semua ahli Kelab Raintree Kuala Lumpur  Responden-

      yang lain kecuali Perayu-Perayu)                     Responden]

 

 

 

 

 

[Dalam Perkara Mahkamah Tinggi Kuala Lumpur

(Bahagian Dagang)

Guaman No. C22-204-1986]

 

Antara

 

1.    Mohd Latif Bin Shah Mohd

2.    Mohd Ali Bin Mohd Dewal

3.    David Siew Wai Keong

      (Mendakwa bagi pihak mereka sendiri dan

      semua ahli Kelab Raintree Kuala Lumpur

      yang lain kecuali Perayu-Perayu)                      Plaintif-Plaintif

 

Dan

 

1.    Tengku Abdullah Ibni Sultan Abu Bakar

2.    Yusof Bin Abu Bakar

3.    John Low Nyap Heng

4.    Yeoh Chong Swee

5.    Leonard Tham

6.    Tengku Azlan

7.    Abdul Kadir Kassim

8.    Clifford Tan                                                                                         

9.    Lt. Col. Zarazillah                                            Defendan-Defendan]

 

 

CORAM:     Abdul Hamid Mohamad F.C.J.

                    Rahmah Hussain F.C.J.

                    Richard Malanjum J.C.A.

 

 

                            

JUDGMENT OF THE COURT

 

1.       There are before this Court two applications of similar nature (Enclosure 74 (a) and Enclosure 61 (a)) (the applications proper) filed on 18.09.2003 by the Applicants pursuant to Rule 137 of the Federal Court Rules 1995 in relation to two Federal Court Civil Appeals Nos. 08-32-1996 (W) and 08-34-1996 (W) respectively.

 

2.       The applications proper were filed following the dismissal by this Court on 12.04.2001 the application by the Applicants for leave to appeal against the decisions of the Court of Appeal rendered on 21.05.1996.

 

3.       And the appeals to the Court of Appeal came about after the High Court made several orders on 06.02.1995 after a full trial in respect of the three suits filed thereat in 1986.

 

4.       In the applications proper the Applicants seek for the following orders, inter alia:

 

“(1)   the Order of the Federal Court made on 12th April 2001 dismissing the Appellant/Applicant’s earlier Notice of Motion be set aside;

 

 (2)    the earlier Notice of Motion be reheard;

 

(3)     the Appellant/Applicant be given leave to appeal to the Federal Court against the whole of the Order of the Court of Appeal dated 21st May 1996;

 

(4)     the Appellant/Applicant be given leave to file and serve the Notice of Appeal within 14 days from the date of the Order giving leave;

 

(5)     all execution proceedings relating to the Order of the Court of Appeal dated 21st May 1996 and the High Court dated 6th February 1995 be stayed until final decision of the Federal Court;

 

(6)     the costs of this application be costs in the said appeal.”

 

5.       However, pending the hearing of the applications proper the Respondents filed two Notices of Motion (Enclosure 76(a) in 08-32-1996 (W) and Enclosure 63(a) in 08-34-1996 (W) (subsidiary applications) praying for an order that the applications proper be struck off on the following grounds, inter alia:

 

“(a)   that the application which the Respondent purported to make to this Court by the said Notice of Motion is an abuse of process;

 

(b)     that this Honourable Court has no jurisdiction or power to set aside this order given on 12.4.2001 (dismissing the Respondent application for leave to appeal against the decision of the Court of Appeal made on 21.5.1996 in the said matter) or  to re-hear the said application;

 

(c)     that the decision of the Court of Appeal become final and was no longer subject to any further appeal when this Honourable Court dismissed the Respondent’s said application for leave to appeal on 12.4.2001;

 

(d)     that no circumstances exist to warrant the exercise by this Honourable Court of its inherent power or discretion to review its decision given on 12.4.2001 and to re-hear the Respondent’s said application for leave to appeal against the decision of the Court of Appeal.”

 

6.       At the outset of the hearing of the applications proper it was agreed that the subsidiary applications should be heard first and the jurisdictional issue determined.

  

7.       Thus the primary consideration in this Judgment is whether this Court has the jurisdiction to hear the applications proper bearing in mind the grounds raised in the subsidiary applications.

 

8.       In the event that the jurisdictional issue is determined in the affirmative for the Applicants, the next stage will be for the applications proper to be heard on their merits.

 

9.       In retrospect it would have been more advantageous in term of time and convenience if the applications proper and the subsidiary applications were heard together.

 

10.     Rule 137 of the Federal Court Rules 1995 reads:

‘For the removal of doubt it is hereby declared that nothing in these Rules shall be deemed to limit or affect the inherent powers of the court to hear any application or to make any order as may be necessary to prevent injustice or to prevent an abuse of the process of the court.’.

 

11.     It is obvious that although the Rule is declaratory of the inherent common law powers of the court to prevent injustice or to prevent an abuse of the process of the court such move may have been necessary in view of Article 121(2) of the Federal Constitution which reads:

 

2)    There shall be a court which shall be known as the Mahkamah Perseketuan (Federal Court) and shall have its principle registry in Kuala Lumpur and the Federal Court shall have the following jurisdiction, that is to say-

o                    (a)     ………….;.

o                     (b)    ………..; and

o                    (c)     such other jurisdiction as may be conferred by or under federal law.”

12.     Accordingly, as the law presently stands Rule 137 is the federal law that gives this Court the inherent powers and hence jurisdiction to hear matters such as the applications proper.

 

13.     It is therefore not correct to say that this Court has no jurisdiction to entertain any application which seeks for an order to review its earlier decision. There are decisions of this Court made in the exercise of its inherent powers as stipulated in Rule 137. (See: Chia Yan Tek & Anor v Ng Swee Kiat & Anor [2001] 4 MLJ 1; MGG Pillai v Tan Sri Dato’ Vincent Tan Chee Yioun [2002] 2 MLJ 673).

 

14.     In Chia Yan Tek & Anor (supra) at p.10 Mohd. Dzaiddin CJ declared:

 

“Rule 137 of the Rules clearly gives us the inherent powers to hear any application or to make any order as may be necessary to prevent injustice. The issue of reopening or reviewing our own decision in the instant case therefore does not arise.”

 

15.     In passing we are conscious of the on-going debate on the issue of whether Article 121(1), (1B) and (3) of the Federal Constitution have done away with the common law inherent powers and jurisdiction of the courts in this country. (See: Megat Najmuddin Bin Dato Seri (Dr) Megat Khas v Bank Bumiputra (M) Bhd) [2002] 1 MLJ 385; MGG Pillai v Tan Sri Dato’ Vincent Tan Chee Yioun [supra]; cf. Filotek Trading Sdn Bhd v Buildingcon-Cimaco Concrete Sdn Bhd [1999] 4 MLJ 268).  But we need not have to dwell on that point in this Judgment.

 

16.     In addition we are of the view that Rule 137 cannot be construed as to limit the jurisdiction of this Court only to situations where its earlier decision is a nullity either because the Court making it was not properly constituted or being illegal or lack of jurisdiction. In other words the exercise of jurisdiction should not be confined to the standing of the coram that rendered the impugned decision. Surely the phrase ‘to hear any application or to make any order as may be necessary to prevent injustice or to prevent an abuse of the process of the court’ is wide enough to encompass circumstances beyond those stated situations. To limit therefore the application of Rule 137 to only certain situations would tantamount to stifling the wide jurisdiction envisaged therein.  The foundation of the jurisdiction of this Court under Rule 137 is to ‘prevent injustice or to prevent an abuse of the process of the court’. (See: Megat Najmuddin Bin Dato Seri (Dr) Megat Khas (supra)).

 

17.     No doubt the judicial pronouncements thus far on the said Rule appear to confine mainly on ‘coram failure’ situation hence ruling as being nullity the earlier decisions in issue. But these authorities in our view are merely instances on the application of the Rule. They should not be read as having set down the parameters on the jurisdiction of this Court in the context of the said Rule.

 

18.     In the subsidiary applications the grounds relied upon for asking the applications proper to be struck off are that the decision of the Court of Appeal had become final after the refusal of leave, that there was no longer any right of appeal against the decision of the Court of Appeal once the application for leave had been dismissed and that upon dismissal of the application for leave this Court is functus officio.

19.     With respect there is nothing in Rule 137 indicating that such grounds are sufficient for the applications proper to be dismissed in limine without having to hear the merits.

 

20.     Ultimately when invoking Rule 137 an applicant in our view has the onerous task of establishing to the satisfaction of this Court that on the facts, circumstances and the law as applied in an impugned decision in issue, it occasioned injustice or abuse of process which need to be rectified or prevented. Hence we would think that it is on a case by case basis. And we hasten to add that we do not think it was the intention of the Legislature when promulgating Rule 137 that every decision of this Court is subject to review. To do so would be anathema to the concept of finality in litigation.

 

21.     Just recently this Court declined jurisdiction to hear an application made under Rule 137. (See: Adorna Properties Sdn. Bhd. v Kobchai Sosthikul (Rayuan Sivil No. 02-14-1997 (P)).  But in that case it was obvious that that was the second time the applicant applied under Rule 137 in respect of the same judgment of this Court albeit on a different ground. Moreover it was not shown and even if it had been, the Court was not convinced that the application of the law in the impugned judgment had occasioned grave injustice. There this Court was also concerned with the attitude of the applicant venting his complaints against the impugned judgment by way of instalment in addition to the fact that there was a considerable lapse of time between the first and second applications.

 

22.     The present applications proper however are the first attempt by the Applicants to set aside the 12.04.2001 decision of this Court. Further the impugned decision is only on refusal of leave to appeal and not a substantive judgment. And views have been expressed in substantive judgments of this Court where in retrospect having heard the merits of the appeal proper it was felt that the grant of leave to appeal should not have been made in the first place. Thus, if the grant of leave to appeal could be subsequently doubted there is no reason why the converse should not be permitted. And one way is the application of Rule 137.

 

          (See:  Sri Kelangkota-Rakan Engineering JV Sdn Bhd & Anor v Arab-Malaysian Prima Realty Sdn Bhd & Ors [2003] 3 MLJ 257; Moscow Narodny Bank Ltd. v Ngan Chin Wen (2004) 2 CLJ 241).

 

23.     Thus, for the foregoing reasons we rule that this Court has jurisdiction to hear the merits of the applications proper. The subsidiary applications are therefore dismissed with costs. And we hereby order that the applications proper be fixed for hearing accordingly.

 

Date:  3rd September 2004                                                        

 

 

 

signed

(DATIN PADUKA RAHMAH BT. HUSSAIN)

Hakim

Mahkamah Persekutuan Malaysia

 

 

 

 

 

signed

(DATUK RICHARD MALANJUM)

Hakim

Mahkamah Rayuan Malaysia

 

Bagi Pihak Pemohon:       Dato’ Pathmanathan

                                      Mr. Murali B. Pillai

                                      Mr. Sreether Sundaram

                                      Tetuan Murali B. Pillai & Assoc.

                                      Tetuan Gideon Tan Razali Zaini

 

 

 

Bagi Pihak Responden:    Raja Aziz Addruse

                                      M/s Liza Chan Sow Keng

                                      Hema Markandan

                                      Tetuan Liza Chan & Co.