INNA CAHAYA SDN BHD vs UNITED FUSION (SANDAKAN) SDN BHD & JACKSON CHAN JIN HAI (MJLR2009a28) Stephen Chung,SS

K22-104-2008

1

5 SABAH MALAYSIA

IN THE HIGH COURT IN SABAH AND SARAWAK

AT KOTA KINABALU

NO: K22-104-2008

INNA CAHAYA SDN BHD – PLAINTIFF

10 AND

UNITED FUSION (SANDAKAN) SDN BHD – 1ST DEFENDANT

JACKSON CHAN JIN HAI – 2ND DEFENDANT

RULING

15

1. On 17.06.2008 the Plaintiff filed the writ of summons together with the

statement of claim against the 1st and 2nd Defendants. On 09.07.2008, the

writ was sent by AR Registered post to the 1st Defendant at its address in

Sandakan and to the 2nd Defendant at his address in Pontian, Johor. On

20 29.07.2008, the 1st and 2nd Defendants through their solicitors filed an

appearance to the writ.

2. However on 30.07.2007, the Plaintiff filed a certificate of non-appearance

and judgment in default of appearance with the High Court Registry at Kota

25 Kinabalu and judgment in default of appearance was accordingly entered

K22-104-2008

2

against the 1st and 2nd 5 Defendants in the sum of RM 280,000.00 with

interest at 8% per annum from 30.06.2005 until full settlement and costs.

3. On 22.09.2008, the Defendants filed this summons in chambers with a

supporting affidavit to set aside the judgment in default on the grounds

10 that the judgment was irregular and that the 1st and 2nd Defendants have a

good defence on the merits.

4. Order 12 Rule 4 (b) of the Rules of the High Court (RHC) provides that the

time limited for appearing in the case of a writ served within Sarawak or

15 Sabah shall be 10 days after service of the writ (including the day of

service). In the case of a defendant whose place of residence is not within

the division or residency in which is situated the High Court Registry out of

which the writ was issued, the time limited for appearance is 20 days. In

this case the writ was issued out of the Kota Kinabalu High Court Registry

20 and to be served on 1st Defendant in Sandakan and on the 2nd Defendant in

Pontian, Johor. The time limited for the 1st and 2nd Defendants to enter an

appearance to the writ was 20 days. The records showed that the 1st and

2nd Defendants entered an appearance to the writ on 29.07.2008, within

the 20 days’ time limited for entering the appearance as required by Order

25 12 Rule 4 (b)RHC.

5. Order 13 Rule 7 (I) provides that judgment shall not be entered against a

defendant under this order unless the plaintiff produces a certificate of

non-appearance and an affidavit is filed by or on behalf of the plaintiff

K22-104-2008

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proving 5 due service of the writ. Where an application is made to for an

order affecting a party who has failed to enter an appearance the court

hearing the application may require to be satisfied in such manner as it

thinks fit that the party is in default of appearance. [Order 13 Rule 7 (2)]. In

this case as the 1st and 2nd Defendants had entered an appearance to the

10 writ on 29.07.2008, the Plaintiff could not present the certificate of nonappearance

nor the judgment in default of appearance at the Kota Kinabalu

High Court Registry on 30.07.2008. The judgment in default of appearance

entered on 30.07.208 was irregular and ought to be set aside. I also note

that there are issues of facts raised by the parties in their affidavits which

15 ought to go for trial: see Tatchee Machinery Agency v Posan Timber Trading

Sdn Bhd (1984) I LNS 167 and Yap Ke Huat Ors v Pembangunan Warisan

Murni Sejahtera Sdn Bhd (2008) 4 CLJ 175.

6. I order that the judgment in default of appearance entered on 30.07.2008

20 be set aside and the 1st and 2nd Defendant shall file their defence within 14

days from today and the Plaintiff to file a reply to the defence (if any)

within 14 days of service of the defence. Costs to be in the cause.

16.11.2009

25

(STEPHEN CHUNG)

Judicial Commissioner

High Court 4, Kota Kinabalu