
CIVIL PROCEDURE – HIGH COURT ORDERS SECURITY FOR COSTS AGAINST HIDDEN FUNDER – CHAMPERTOUS FEATURES TRIGGER O 23 R 1(2A) ROC
In Syed Sazlee bin Syed Hamzah (as executor) v Puncak Kenangan (M) Sdn Bhd & Ors [2025] 12 MLJ 937, the High Court ordered RM400,000 in security for costs against a non-party funder, Khoo Kiam Chong (“KKC”), after finding strong evidence that he financed and controlled the litigation in return for 47.5% of the recovery. The Court held that the POA, Declaration of Trust and Agreement for Shares bore clear champertous characteristics, and that the estate lacked assets and had a history of unpaid costs, creating a real risk of non-payment. Applying Order 23 rule 1(2A)(b), the Court imposed RM250,000 and RM150,000 as security while ensuring the amount would not stifle the claim.