Yew Huoi, How & Associates | Leading Malaysia Law Firm

CIVIL PROCEDURE – STRIKE OUT UNDER ORDER 18 RULE 19(1)(A),(B) RULES OF COURT 2012 – EXTENSION OF TIME APPLICATION

1. Summary and Facts:
Badan Pengurusan Subang Parkhomes V Zen Estates Sdn Bhd (Sebelum ini dikenali sebagai Sendi Bangga Development Sdn Bhd) (Fadhullah & Assoc Consulting Engineers Sdn Bhd, Pihak ketiga)” [2025] MLJU 3591 the dispute arose from a claim by the management body of a condominium, Badan Pengurusan Subang Parkhomes (“the Plaintiff”), against the developer, Zen Estates Sdn Bhd (“the Defendant”), for latent defects in the building. The High Court had earlier, on 22 January 2024, found the defendant liable for the defects and ordered damages to be assessed, including damages for unrectified defects, non-compliance with the Electricity Regulations 1994, and loss of use of common property. The defendant, in turn, had a third-party claim against its engineering consultant, Fadhullah & Associates Consulting Engineers Sdn Bhd, for indemnity relating to the electrical non-compliance. Following the judgment on liability, the matter proceeded to assessment of damages, during which procedural disputes arose between the parties.

2. Legal Issues:
• Whether the plaintiff’s delay in filing the Notice of Appointment for Assessment of Damages beyond six months under Order 37 rule 1(5) of the Rules of Court 2012 should cause the assessment proceedings to be struck out.
• Whether the defendant suffered any actual prejudice due to the plaintiff’s delay in filing the Notice of Appointment.

3. Court’s Findings:
• The High Court dismissed the Defendant’s application and allowed the plaintiff’s request for an extension.
• The court found that the Defendant had failed to substantiate any actual prejudice or damages suffered from the delay.
• Order 37 Rule 1(5) ROC 2012 was not mandatory, citing the Court of appeal decision in Vellasamy
a/l Ponnusamy & Ors v Gurbachan Singh a/l Bagawan Singh & Anor [2020] MLJU 695, which emphasized that;
• The Rules of Court 2012 adopt an inquisitorial approach and case management approach rather than a rigid adversarial one.

4. Practical Implications:
This judgment affirms that Malaysian courts emphasize on this substantive justice over procedural technicalities, whereas:
• The court characterized the defendat’s application with costs of RM5,000.00 as a mere afterthought aimed at delaying the assessment of damages.
• Order 37 ROC 2012 should not be interpreted rigidly and non-compliance willl not render proceedings void unless it causes substantial prejudice or contravenes an “unless order”.
This case reinforces the judiciary’s commitment to the overriding objective of ensuring matters are resolved on their merits rather than being struck out for technical delay.

Recent Post

LEGAL UPDATES – THE SILENT CURVE: WHY MEDICAL PREMIUMS SUDDENLY SPIKE

Medical insurance premiums do not increase gradually. They rise exponentially. For many years, costs appear manageable, giving policyholders a false sense of stability. However, once the insured reaches their mid-60s, medical charges begin to accelerate sharply, and after age 70, they often outpace the premiums by several multiples.

This happens because medical insurance is funded from a finite pool of money – an investment “bucket” – while the medical rider functions like an engine that consumes more fuel as the insured ages. When the engine grows faster than the bucket can be replenished, depletion is inevitable. The result is sudden premium hikes, demands for top-ups, or policy lapse – not due to misconduct or missed payments, but due to the structural design of the product itself.

Read More »

THE ‘COVER UNTIL 99’ MYTH – WHY INSURANCE AGENTS GET IT WRONG

Consumers must stop relying on what insurance agents say and start reading what insurance policies actually provide. ‘Medical cover until 99’ does not mean guaranteed coverage at an affordable premium. In reality, medical insurance charges rise exponentially after age 70, often making the policy mathematically unsustainable. By the time policyholders realise this, they are told to top up tens of thousands of ringgit or lose coverage altogether.

Read More »

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

Read More »

UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

Read More »

WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

Read More »

NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

Read More »
en_USEN
× Contact Us