PROCEDURE & PRINCIPLES: ORDER 26A: ORDER 14 & ORDER 14A

PROCEDURE & PRINCIPLES: ORDER 26A: ORDER 14 & ORDER 14A ISBN 983-41166-7-5 Author: Nasser Hamid Binding: Softcover/Extent: 650 pp Publication Price: MYR 220.00 The law is stated as of July 1, 2004 Chapter 1 ORDER 26A SCR 1980 Summary judgment under Order 26A of the SCR 1980... 1 Bars to Summary Relief under Order 26A r 1 of the Subordinate Court Rules 1980.... 1 Claim of Plaintiff based on an allegation of Fraud... 1 Claims against the Government... 2 Claim by the Government... 2 Claim against Several Defendants... 4 Compliance with Rules of Court... 4 Application for Summary Judgment... 5 Procedural Requirements... 5 Principles Governing Application for Summary Judgment under Order 26A... 6 Time for Application - Delay in Application... 6 Manner in which Application under Rule 1 to be made... 10 Procedure - Service of Summons... 10 Service of Summons and Affidavit... 10 Service of Notice of Application, Affidavit and Exhibits... 11 Notice of Application... 11 Pleadings... 12 Defective Pleadings... 12 Amendment of Pleadings... 13 Delay in Application to Amend Pleadings... 13 Delay in Application to Amend Pleadings Date of Amendment 14 Raising New Issues... 15 Amendment inconsistent with the Original Pleading... 16 Amendment adding an Allegation of Fraud 16 Statement of Claim - Summary Form of the Material Facts... 17 Defective Statement of Claim... 17 Affidavit in Support... 18 Jurats... 18 Affidavit to Condescend to Particulars... 19 Affidavit in Support - Locus Standi of Deponent... 19 Affidavit in Support Made by more than one Deponent... 19 Error in Affidavit... 20

Affidavit to be Signed... 20 Defective Affidavit... 21 The Affidavit-in-Reply... 21 Failure by Plaintiff to Reply to Allegations of Defendant... 21 Applicability of Order 26A Rule 2(3) of the SCR... 22 Affidavit in Reply Time for Filing... 23 Filing Affidavit out of Time... 24 Service of Affidavit in Reply Delay... 25 Venue of Hearing... 25 Duty of Defendant... 25 Defences - Alternative Claims Triable Issues... 26 Inconsistencies between Affidavit in Opposition and Statement of Defence 26 Application to Strike out Defence... 29 Orders of Court... 29 Dismissal of Application... 29 Granting Conditional Leave... 30 Varying or Amending Order... 30 Setting Aside Judgment - Judgment given in Absence of Party... 34 Setting Aside of Judgment Effect on Execution Proceedings... 35 Application for Summary judgment on Counterclaim... 35 Counterclaim Leave to Defend... 36 Plausible Counterclaim... 36 Relief against Forfeiture... 37 Stay Of Execution pending Appeal... 38 Appeals... 39 Notice of Appeal... 40 Endorsement of Notice of Appeal... 40 Appeal against Whole or Part of Decision... 45 Appeal to Judge in Chambers of the High Court... 46 Record of Appeal... 46 Appeals Admission of Fresh Evidence... 51 Costs... 52 Chapter 2 ORDER 14 Introduction... 53 Jurisdiction of Court... 53 Rules of Court Amendments - Technical Objections... 54 Prejudice to the due Adminsitration of Justice... 56 Summary Judgment Interpretation of Rules of Court... 57 General Principles... 58 Purpose of Order 14... 58 Scope of Order 14... 59 Bars to Summary Relief under Order 14 of the Rules of the

High Court 1980.... 59 Fraud... 60 Allegation of Fraud... 60 Conspiracy to Defraud... 62 Some Other Reason for a Trial - Fraud... 63 Evidence Fraud... 63 Fraud - Foreign Judgment... 63 Fraud - Agency - Knowledge of Solicitor... 64 Action under Order 81 of the RHC 1980... 66 Statutory Debt... 70 Actions against the Government... 71 Disputed Damages... 71 Presumptions - Statutory Presumptions... 73 Claims Within the Scope of Order 14... 73 Admiralty Actions - Admiralty Actions in Rem... 74 Declaratory Relief... 74 Employment... 74 Foreign Judgments... 77 Injunctions... 77 Perpetual Injunctions... 78 Copyright Infringement... 80 Passing Off Action... 80 Negligence Actions... 82 Time for Application... 84 Delay... 84 Explanation for Delay... 86 Commencement of Action... 94 Service of Summons... 95 Frivolous Applications... 96 Debtor Company under Receivership - Leave to Commence Application... 97 Sealed Summons and the Supporting Affidavit... 101 Proceeding on part of Claim... 102 Part of Claim based on Interim Certificates... 102 Preliminary Procedural Requirements for an Order 14 Application.... 103 Defendant to have entered Appearance... 103 Prima Facie Case... 104 Evidence... 104 Without Prejudice Negotiations The Rule as to Privilege... 105 Public Policy... 105 Continuing Privilege... 106 Absence of Negotiations Lifting of Without Prejudice Veil... 107 Waiver of Privilege... 109 Evidence Judicial Notice... 109 Hearing of Application... 109 Absence of Defendant at Hearing... 109 Third Party... 111

Application for Summary Judgment - Alternative Prayers... 113 Chapter 3 STATEMENT OF CLAIM Object of Pleadings... 117 Pleadings & Evidence - Rationale for Pleading Material Facts... 118 Statement of Claim... 120 Material Facts... 121 Defective Statement of Claim... 122 Non-Disclosure of Facts... 122 Cause of Action... 122 Presenting a case on Instalments Abuse of Process... 124 Particulars of Claim... 125 Defective Statement of Claim Date of Accrual of Action... 129 Amendment of Statement of Claim... 129 Amendment of Statement of Claim after grant of Summary Judgment... 130 Renewal of Application... 131 Chapter 4 AFFIDAVITS Affidavit Evidence... 137 Approach of Courts... 137 Evaluating Affidavit Evidence... 138 Optimum Evaluation Approach... 139 Conflicting Affidavit Evidence... 139 Affidavit Condescending into Particulars... 139 Form of affidavits... 139 Language of Affidavits... 140 Cross Examination... 140 Affidavits Irregularities Admissibility... 141 Defective Affidavits... 141 Supplementary Affidavits... 143 Defect in Substance... 143 Affidavit in Support-Validity of -Unsealed Summons... 144 Affidavit in Support - Prima Facie Evidence... 144 Affidavit in Support - Form 18... 145 Affidavit in Support-Procedural Requirements... 146 Non-Compliance... 146 Verification of Facts... 147 Swearing of Affidavit... 147 Omission of Deponent s Name... 148

Affidavits deposed by Solicitors... 148 Belief that there is No Defence... 149 Affidavit in Support Jurat Non-Compliance with Order 41 r 1(7) and (8) of the RHC... 150 Affidavit in Reply cannot improve the Statement of Defence... 152 Filing and Service of Affidavits... 152 Affidavit in Opposition... 157 Bare Assertions... 158 Affidavit filed out of Time Postponement of Application... 159 Chapter 5 DEFENCES & TRIABLE ISSUES Introduction... 161 Statutory Exclusion of Defences... 161 Defendant to Show Cause... 162 Opportunity to be Heard... 162 Pleadings... 163 Defendant bound by Pleadings... 163 Failure to file Statement of Defence... 164 Failure to Reply to Statement of Defence - Joinder of Issues... 164 Bad Defence in Law... 165 Statement of Defence Denials... 165 Failure to Reply to Statement of Defence... 168 Application to Amend Defence... 168 By Affidavit or Otherwise... 169 Can Documents be tendered as Exhibits through Written Submissions... 172 Triable Issues... 173 Affidavits raising Triable Issues... 175 Triable Defences... 177 Triable Issues Duty of Judge... 177 Triable Issues Affidavit Evidence Duty of Judge... 177 Conflict of Evidence Dispute as to Issue of Fact - Duty of Judge 179 Controversial Issues... 179 There ought to be some other reason for trial... 180 Arbitration... 181 Assignment... 182 Statutory Assignment... 182 Nature of Assignment - Locus Standi of Plaintiff... 183 Notice of Assignment... 189 Fraud - Assigment... 190 Estoppel... 191 Estoppel - Pleadings... 191 Estoppel by Convention... 192 Issue Estoppel... 193

Res Judicata... 194 Every Point Which Clearly Belonged to Subject of Litigation... 195 Estoppel Acceptance of Settlement from Third Party... 197 Evidence - Expert Opinion Whether Challenge could be disposed off summarily... 199 Jurisdiction Ouster of Jurisdiction... 200 Jurisdiction - Civil Jurisdiction of Courts... 202 Insurance - Motor Accident Knowledge of Existence of Co-Insurers... 204 Partnership - Dissolution of Partnership Rights of Partners... 207 Signature... 209 Chapter 6 BUILDING CONTRACTS Introduction... 211 Evidence Supporting Application for Summary Judgment in Building Contract Claims... 211 Affidavit in Support... 212 Certificates of Payment - Progress or Interim Certificates... 212 Final Certificate... 212 Validity of Certificate of Payment... 215 Back to Back or Pay When Paid... 217 Conditions Precedent- Absence of Architects Certificate... 224 Defective Works... 227 Delay... 229 Illegality... 229 Liquidated and Ascertained Damages... 229 Past Consideration... 230 Privity of Contract - Failure to Plead Privity of Contract... 230 Set-Off and Counterclaim - Right of Set-Off... 232 Chapter 7 CONTRACT Independent Causes of Action... 237 Claim based on Money Had And Received v Action in Contract 237 Unjust Enrichment... 238 Existence of Contract... 243 Existence of Valid & Enforceable Contract... 243 Factual Matrix of the Case... 246 Construction of Documents to determine Existence of Contract 247 Construction of Contract... 248 Parole Evidence Rule - Whether extrinsic evidence can be

allowed into the construction of a Contract... 249 Collateral Contract... 250 Extrinsic Evidence... 250 Construction of Admission Letter Extrinsic Evidence... 252 Informal Agreement Application of Parole Evidence Rule... 253 Exceptions- Where Extrinsic Evidence is Permissible... 254 Condition Precedent... 257 Contingent Contract... 259 Damages Prove of Damages... 261 Doctrine of Frustration... 263 Frustration - Injunction obtained by Third Party... 266 Illegality... 267 Illegality - Pleadings... 267 Laches - Defence of Laches- Principles which govern the operation of the Plea of Laches... 269 Mental Incapacity... 271 Mitigation of Damages... 274 Repudiation Right of Rescission- Communication of Rescission... 275 Contract Right to Rescind... 276 Right of Rescission- Communication of Rescission... 280 Undue Influence... 283 Chapter 8 CHEQUES Introduction... 287 Principles Applicable... 287 The Cheque Contract... 288 Dishonour of Cheque Due Presentment... 290 Refer to Drawer Dishonour of Cheque... 291 Defences... 291 Failure of Consideration... 292 Failure of Consideration Presumption under Section 30 of the Bills of Exchange Act 1949... 293 Onus of Proof of Lack of Consideration... 294 Defence Documents against acceptance - Whether Cheque Conditional and Unenforceable... 296 Counterclaim... 298 Forgeries... 299 Conversion Liability of Collecting Bank - Collecting Bank banker receives the proceeds of a cheque for a customer who has no title to the cheque... 300

Chapter 9 GUARANTEES Construction of Guarantee... 305 Nature of Guarantee Whether A Mere Guarantee Or An On Demand Guarantee?... 305 Guarantor s Obligation - Co-extensive with those of the Principal Debtor 307 Liability of Guarantor - Construction of Guarantee... 308 Liability of Guarantor Accrued Liability... 309 Continuing Guarantee... 310 Difference between Guarantee & Indemnity... 310 Triable Issues... 311 Action Premature by reason of Other Securities... 311 Breach of Contract... 313 Certificate of Indebtedness... 314 Certificate of Indebtedness - Manifest Error... 315 Conclusive Evidence Clause... 316 Consideration Forbearance to Sue... 317 Past Consideration - Consideration for Guarantee... 319 Interest... 320 Interest - Compound Interest... 321 Interest - Penalty Interest... 322 Liability Dispute as to Extent of Liability... 324 Limitation... 325 Limitation Doctrine of Estoppel... 326 Non-Explanation Of Guarantee and Mistake... 326 Notice of Demand... 327 Notice of Demand Proof of Posting... 328 Release of Guarantee... 329 Undue Influence... 329 Variation of Agreement... 331 Chapter 10 GOODS SOLD & DELIVERED Contract of Sale... 334 Cause of Action Supported by Contemporaneous Documents.. 334 Duty of Buyer... 337 Delivery of Wrong Quantity... 337 Defence of Non-Acceptance of Goods... 338 Failure to Deliver Goods in conformity with the specifications of Quantity, Time of Delivery and Price.... 339 Claim expressed in Foreign Currency... 341 Defence Replacement of Payment... 345

Termination... 345 Notice of Demand... 345 Counterclaim... 346 Interest - Late Payment Interest... 346 Corporate Veil - Lifting the Corporate Veil... 346 Chapter 11 HIRE PURCHASE Triable Issues... 348 Arrears - Claim for Debt above Arrears -Whether Claim for Liquidated Sum... 348 Fourth Schedule Notice - Denial of Receipt of... 351 Interest... 353 Breach of Contract - Repudiation... 354 Mitigation of Damages... 355 Moneylending Whether Hire Purchase Agreement in breach of Moneylenders Act 1951 356 Ownership of Machinery- Validity of Hire Purchase Agreement 356 Settlement Conflict of Evidence... 358 Notice of Termination - Failure to Issue Notice of Termination prior to instituting Action... 359 Chapter 12 LOANS Certificate of Indebtedness... 363 Conclusiveness of Debt Burden of Proof - Certificate of Indebtedness... 363 Certificate of Indebtedness Uncertainty of Debt... 364 Failure to State Parties in Certificate of Indebtedness... 364 Certificate of Indebtedness-Error... 365 Collateral Contract Defences excluded by Statute... 366 Disbursement of Monies Mere Evidence Of Disbursement Of Moneys Does Not Give Rise To A Presumption Of A Loan Or Advancement... 367 Execution of Loan Agreement... 370 Limitation... 371 Mitigation of Damages... 373 Moneylending Presumption of Moneylending... 374 Notice of Demand - General Rules... 375 Denial of Receipt of Notice of Demand... 376 Service of Notices of Demand - General Principles... 379 Service by Post... 380

Notices of Demand Proof of Posting... 381 Evasion of Service... 382 Usual or Last Known Place of Business or Residence... 382 Illegality... 384 Interest... 385 Interest Variation of Interest... 388 Interest Whether Agreement Void for Uncertainty... 390 Performance of Contract Contract performed by Third Party - Section 42 of the Contracts Act 1950... 393 Public Policy Illegality... 394 Recall of Loan Premature Recall... 396 Chapter 13 COUNTERCLAIM Exclusion of Counterclaim... 399 Principles Applicable... 400 Nature of Counterclaim... 401 Application for Summary Judgment on Counterclaim... 404 Bona Fide Counterclaim - Rights of a Defendant who sets up a legitimate counter-claim 405 Claim & Counterclaim - Same Subject Matter... 406 Leave to Defend... 407 Summary Judgment on Counterclaim against Co-Defendant... 409 Plausible Counterclaim... 409 Reply to Counterclaim... 410 Guarantors and Counterclaim... 411 Set- Off... 412 Verbal Agreement for Set Off... 414 Ouster or Exclusion of the Common Law Right of Set-Off... 415 Chapter 14 ORDERS OF COURT Judgment for the Plaintiff... 417 Grant of Summary Judgment - Proper Procedure... 417 Unconditional Leave to Defend... 419 Fresh Summons... 419 Conditional Leave to Defend... 420 Conditions to be Imposed... 425 Summons for Directions... 426 Consequences of Failure to apply for Summons for Directions.. 427 Summons for Directions in respect of Interrogatories... 430 Want of Prosecution Dismissal of Plaintiff s Action... 434 Dismissal of Action for Want of Prosecution The Law... 434

Power of Dismissal - Principles Applicable... 437 Compliance with Order 25 r 1(4) of the RHC... 440 The Delay & Prejudice... 442 Setting Aside Judgment... 449 Setting Aside - Principles Applicable... 449 Summary Judgment entered in hearing of O 18 r 19 Application - Application to Set aside 453 Whether Application should be to Set Aside under O 14 r 11 or appeal under O 56... 455 Mistake in Setting Aside Application for Summary Judgment.. 458 Chapter 15 STAY General Principles... 461 Discretion of Court... 461 Nature of Judgment and the Application for Stay... 462 Special Circumstances... 466 Special Circumstances Test v Nugatory Effect Test... 466 Special Circumstances... 482 Appeal... 482 Money Judgment... 483 Merits of Judgment or Appeal... 483 Permanent Deprivation of Monies... 483 Prejudice... 483 Solvency of Creditor... 484 Status of Defendants... 484 Special Circumstances Nugatory Effect... 484 The Defendant cannot be Restored to its Former Position... 484 Application for Stay v Application for Summary Judgment... 486 Consent Judgment... 486 Winding Up... 486 Stay Of Proceedings... 491 Unconditional Appearance... 492 Chapter 16 APPEALS Introduction... 497 Appeals from Decision of Judge in Chambers... 497 Further Argument... 498 Appeal to Federal Court... 500 Nature of Appeal to Judge in Chambers... 500 Principles of Interference... 501

Discretion of SAR... 504 Appeal to Judge in Chambers - Nature of the Hearing... 504 Admisson of Fresh Evidence in appeal against decision of SAR 505 Further Evidence... 507 Further Affidavit filed after Application for Summary Judgment 508 Point of Law... 508 Decision under Application for Summary Judgment Whether a Decision under Section 3 of the CJA 1964... 509 Preliminary Objections... 517 Appeal against Preliminary Objection... 518 Notice of Appeal Order 49 r 6(2) of the SCR 1980... 521 Notice of Appeal Filed out of Time... 521 Issued... 522 Ex Parte Order of Judge in Chambers... 528 Payment of Judgment Sum Pending Appeal... 536 Failure to Extract Order Effect on Appeal... 537 Failure to Include Decision Appealed From... 537 Application to Reinstate... 539 Chapter 17 ORDER 14A Determination of Questions of Law or Construction... 543 Application under Order 14A of the RHC 1980... 543 Application under Order 33 r 2 of the RHC 1980... 544 Rule 5 of Order 33 of the RHC 1980... 544 The Scope of Order 14A and Order 33 r 2 of the RHC 1980... 547 Purpose & Objective of Order 14A... 551 Disposal of Entire Cause or Matter... 552 Complex Questions of Law... 552 Determination of Questions of Law... 567 Defamation - Defence of Qualified Privilege Section 12 of the Defamation Act 1957 567 Fraud... 579 Limitation Whether the Plaintiff s Action was Time Barred Fraudulent Concealment 580 Locus Standi... 583 Estoppel - Res Judicata... 589 Stay- Agreement to Arbitrate... 599