However, the Federal Court cautioned "that in any attempt to widen the door of the inherent and discretionary jurisdiction of the superior courts to set aside an order of court ex debito justitiae to a category of cases involving orders which contravened 'any written law', the contravention should be one which defies a substantive statutory prohibition so as to render the defective order null and void on ground of illegality or lack of jurisdiction". The contravention must be one which defies a substantive statutory prohibition so as to render the defective order null and void on ground of illegality or lack of jurisdiction (in MacQuire (Malaysia) Sdn Bhd v. HSBC Bank Malaysia Bhd & Anor and Another Appeal [2007] 6 CLJ 176, Selvam Holdings (Malaysia) Sdn Bhd v. Grant Kenyon & Eckhardt Sdn Bhd; BSN Commercial Bank Malaysia & Ors (Intervenors) [2003] 1 CLJ 465 HC, and Yee Seng Plantations Sdn Bhd v. Kerajaan Negeri Terengganu & Ors 21 [2000] 3 CLJ 666, the Court of Appeal applied Badiaddin per Mohd Azmi). In Badiaddin, the contravention defied a substantive statutory prohibition contained in the Malay Reservations Enactment. In Meenakshi Naidoo v. Subramaniya Sastri LR 14 1A 160 (cited by Gopal Sri Ram JCA, as he then was, in Badiaddin ), the High Court at Madras purported to entertain an appeal which was not appealable. And in Chief Kofi Forfie v. Barima Kwabena Seifah [1958] AC 59, [1958] 1 All ER 289 (also cited by Gopai Sri Ram JCA, as he then was, in Badiaddin ), the judgment was delivered when the presiding judge of the Chief Commissioner's Court had no power to exercise judicial functions. There must be "a breach of the rules of natural justice or a contravention of a statute which is a sine qua non to invoke the very limited jurisdiction of a court to have its orders declared as void" (Annie Quah Lay Nah v. Syed Jafer Properties Sdn Bhd & Ors And Another Appeal [2007] 1 CLJ 1 per Gopal Sri Ram JCA). The order must be tainted by "fraud or some other vitiating element and not a judgment that was merely irregular in the sense that it is one obtained in breach of a rule of court or of practice (Chong Keat Realty Sdn Bhd v. Ban Hin Lee Bank Bhd [2003] 3 CLJ 532 per Gopal Sri Ram JCA). …’ (Emphasis added) [65] Thus, as a ‘special exception’, a final judgment of a High Court may only be set aside and struck out ex debito justitiae by another High Court, in the exercise of its inherent jurisdiction, upon grounds of breach of the rules of natural justice, illegality or lack of jurisdiction. [66] There was no indication that the JID in the Recovery Action was otherwise than regularly obtained. As indicated, the Insurer was served but had failed to enter an appearance. In any event, there is authority enough for the proposition that mere irregularity in procedure would not suffice to warrant the invocation of the Court’s inherent jurisdiction to set aside the judgment of another Court (see Chong Keat Realty Sdn Bhd v Ban Hin Lee Bank Bhd [2003] 3 CLJ 532 referred to in Hew Hooi Chun). 22 [67] In addition, it would be observed that the fraud alleged by the Insurer was in respect of the claim upon which judgment was obtained in the Liability Action. Until that judgment is set aside in an action brought for that purpose, it remains a valid and enforceable judgment that cannot be ignored. [68] The JID in the Recovery Action was itself untainted by the allegation of fraud. It was premised on the judgment in the Liability Action. There was also nothing to suggest that the JID itself was affected by any want, or excess of jurisdiction, or that it was tainted by any other illegality or breach of the rules of natural justice. [69] We were therefore in complete agreement with the learned Judge that the JID in the Recovery Action could not be impeached or set aside. Clearly, the obvious recourse the Insurer had was to apply to set aside the JID and to contest the Recovery Action (see Letchumanan Gopal v Pacific Orient & Co Sdn Bhd [2011] 5 CLJ 866; [2011] 4 MLJ 541). Appeal 1704: Claimant’s appeal against continuation of the injunction [70] Upon dismissal of the Insurer’s claim in Suit 332, there was in law no legal basis upon which the interlocutory injunction granted could be extended, whether upon terms or otherwise. [71] The injunction that was extended would have the indirect effect of precluding the Claimant’s enforcement of the judgment obtained in his favour in the Liability Action against the Insurer; leaving aside the issue 23 whether the order in the Recovery Action was at all necessary in the first place (see Pacific & Orient Insurance Co Bhd v Muniammah Muniandy [2011] 1 CLJ 947; Pacific & Orient Insurance Co Bhd v Rasip Hamsudi & Ors [2017] 4 CLJ 572). It has to be borne in mind that the judgment obtained by the Claimant in the Liability Action remains valid and was never set aside or appealed against. [72] An injunction is a remedy and it has to be supported by a valid cause of action. As Lord Diplock observed in the Siskina (Owners of Cargo Lately Laden on Board) and Others Respondents and Distos Compania Naviera S.A. Appellants [1979] AC 210 at p 256: ‘A right to obtain an interlocutory injunction is not a cause of action. It cannot stand on its own. It is dependent upon there being a pre-existing cause of action against the defendant arising out of an invasion, actual or threatened by him, of a legal or equitable right of the plaintiff for the enforcement of which the defendant is amenable to the jurisdiction of the court. The right to obtain an interlocutory injunction is merely ancillary and incidental to the pre-existing cause of action. It is granted to preserve the status quo pending the ascertainment by the court of the rights of the parties and the grant to the plaintiff of the relief to which his cause of action entitles him, which may or may not include a final injunction. Since the transfer to the Supreme Court of Judicature of all the jurisdiction previously exercised by the court of chancery and the courts of common law, the power of the High Court to grant interlocutory injunctions has been regulated by statute. That the High Court has no power to grant an interlocutory injunction except in protection or assertion of some legal or equitable right which it has jurisdiction to enforce by final judgment, was first laid down in the classic judgment of Cotton L.J. in North London Railway Co. v. Great Northern Railway Co. (1883) 11 Q.B.D. 30, 39-40, which has been consistently followed ever since.’ 24 (Emphasis added) [73] Lord Diplock’s statement of the law was referred to by Gopal Sri Ram JCA (as his Lordship then was) in a decision of this Court in Nishimatsu Construction Co Ltd v Kecom Sdn Bhd [2009] 2 MLJ 404 where at p 406, his Lordship stated as follows: ‘[3] In our judgment the injunction applied for should have not been granted because there was no pleading against the appellant on which the injunction could issue. It is settled law that the right to obtain an interlocutory injunction is not a cause of action. There must be a cause of action pleaded in the usual fashion before an interlocutory injunction may be applied for and obtained. We consider it unnecessary to do more than refer to the following passage in the speech of Lord Diplock in the Siskina (Cargo Owners) v Distos Compania Naviera SA [1979] AC 210at p 256 …’ (Emphasis added) (See also Tenaga Nasional Berhad v Teobros Development Sdn Bhd [2008] 6 MLJ 391 and Sivakumar A/L Varatharaju Naidu v Ganesan A/L Retanam [2010] 7 MLJ 355). [74] Although in recent times, the principle enunciated in the Siskina and its stringency have attracted reservations and reconsideration urged (see Kazakhstan Kagazy v Zhunus [2016] EWHC 1048 (Comm) at para 58) with exceptions created (e.g. in respect of anti-suit injunctions, see Masri v Consolidated Contractors [2009] QB 503), no such exception however existed or was raised in respect of Suit 332. [75] A similar situation was encountered in Yeap Tick In v Pacific & Orient Insurance Co Bhd [2020] MLJU 223. In that case, two causes of 25 action were mounted by the plaintiff. Despite having dismissed the plaintiff’s causes of action, a permanent injunction was granted against the defendant. [76] In delivering the judgment of the Court in Yeap Tick In, Harmindar Singh Dhaliwal JCA (as his Lordship then was) stated: ‘[9] There was no dispute that the respondent here had initiated two causes of action against the appellant, that is, the torts of malicious prosecution and abuse of the court process. It was also plain that after due consideration, both causes of action were dismissed by the learned Judge. Now, there were no appeals by either side on these findings. The parties are then taken to be bound by these findings and it was not open to this Court to revisit these findings. [10] Having so dismissed the claims of the respondent, it is our respectful view that the learned Judge had no jurisdiction to grant any relief to the respondents. In other words, before any relief is granted, whether in the form of damages or other relief, the causes of action must be firmly established. Curiously enough, the learned Judge thought it fit to grant what appeared to be a permanent injunction against the appellant from proceeding with any enforcement proceedings against the respondent. We will come to the reasons why the learned judge did so in a moment.’ (Emphasis added) [77] Similarly, having dismissed the Insurer’s claim in Suit 332, there was no legal foundation upon which the interlocutory injunction granted could be extended. [78] While we have no doubt that the learned Judge in extending the injunction was persuaded by his finding that there was a conspiracy to 26 defraud the Insurer, however, there are legal limits to what Courts may do in respect of what it may perceive to be the justice of the case. Appeals 1704 and 1711: Claimant’s appeal and cross-appeal against the costs ordered [79] There were then the costs ordered against the Claimant in favour of the Insurer in Suits 121 and 332. While costs are always a matter of discretion for the Court, it is trite that such discretion must be exercised judicially and upon relevant and appropriate material before the Court. [80] In Chia Tien Foh & Ors v Lo Man Heng & Ors [2015] 1 LNS 1219, Vernon Ong Lam Kiat JCA (as his Lordship then was) stated that: ‘[40] The power of the court to award costs is provided under Item 15 of the Schedule in the Court of Judicature Act 1964. It is a discretionary power which must be exercised judicially, ie, in accordance with established principles and in relation to the facts of the case, which includes any matter relating to litigation, the parties' conduct in it and the circumstances leading to the litigation, but nothing else. If there are no grounds for departing from the normal rule or the judge acts on extraneous grounds he has in effect not exercised his discretion at all (see Scherer & Anor v. Counting Instruments Ltd & Anor [1986] 2 All ER 529 (CA)). [41] As a general rule, costs follow the event and the successful party is entitled to be paid his costs unless there are special grounds to order otherwise, and those grounds, it is well settled, must be grounds connected with the cause of action (per Parker LJ in Ottway v. Jones [1955] 2 All ER 585 at page 591).’ (Emphasis added) 27 In that case, the learned Judge’s order of costs in the plaintiff’s favour was not set aside as the cause of action arose from the breach of an agreement by the defendants. [81] In Ottway v Jones [1955] 2 All ER 585 at p591, Parker LJ stated as follows: ‘It is, I think, clear that the discretion of the county court judge under the County Court Rules, 1936, Ord 47, r 1, just as that of a High Court judge under s 50(1) of the Supreme Court of Judicature (Consolidation) Act, 1925, is, on the face of it, completely unfettered. I say “on the face of it” because, of course, the discretion cannot be exercised arbitrarily; it must be exercised judicially and on fixed principles dictated by reason and justice. One starts with this, that, as a general principle, costs follow the event, and the successful party is entitled to be paid his costs unless there are special grounds to order otherwise, and those grounds, it is well settled, must be grounds connected with the cause of action. No doubt, also, where a plaintiff has wholly failed to establish his title or his right, it is impossible judicially to order the successful defendant to pay the plaintiff's costs.’ (Emphasis added) [82] In Donald Campbell & Co Ltd v Pollak [1927] AC 732 at pp 811- 812, Viscount Cave LC stated: ‘A successful defendant in a non-jury case has no doubt, in the absence of special circumstances, a reasonable expectation of obtaining an order for the payment of his costs by the plaintiff; but he has no right to costs unless and until the Court awards them to him, and the Court has an absolute and unfettered discretion to award or not to award them. This discretion, like any other discretion, must of course be exercised judicially, and the judge ought not to exercise it against the successful party except for some reason connected with the case.’ 28 (Emphasis added) [83] In identifying what those reasons might be, the learned Judge referred to the decision of the Court of Appeal in Ritter v Godfrey [1920] 2 K.B. 47 where Atkin LJ stated: ‘It is not easy to deduce from these authorities what the precise principles are that are to guide a judge in exercising his discretion over costs. And yet as the discretion is only to be exercised where there are materials upon which to exercise it, it seems important to ascertain the principles upon which a judge is to discern whether the necessary materials exist. In the case of a wholly successful defendant, in my opinion the judge must give the defendant his costs unless there is evidence that the defendant (1.) brought about the litigation, or (2.) has done something connected with the institution or the conduct of the suit calculated to occasion unnecessary litigation and expense, or (3.) has done some wrongful act in the course of the transaction of which the plaintiff complains. These principles require further expansion. By (1.) is meant - has so conducted himself as to lead the plaintiff reasonably to believe that he had a good cause of action against the defendant, and so induce him to bring the action. The authority for this proposition is Bostock v. Ramsey. (1) It is wide, for in terms it is not limited to unreasonable or improper conduct, or to conduct other than that which constitutes the alleged cause of action. Inasmuch as the bringing of many actions of contract and most actions of tort is due to the effect upon the plaintiff’s mind of defendant’s conduct, and the effect is at any rate to induce a belief that the plaintiff has a good cause of action, it would appear to follow that provided the belief was reasonable the judge in all such cases has grounds for depriving a successful defendant of costs. I presume e converso there would be grounds for dealing with a successful plaintiff’s costs when his conduct has induced the defendant reasonably to believe that he has a good defence. 29 I am inclined to think therefore that the propositions in Bostock v. Ramsey (1) should be read subject to the first, if not also the second, of the limitations suggested above – i.e., subject to the conduct being unreasonable or improper, and being conduct other than that which constituted the alleged cause of action. For the purposes of this case, however, I shall assume that they are to be read without the qualification suggested. (2.) and (3.) may possibly overlap. (2.), I think, would include improper conduct in or connected with the litigation calculated to defeat or delay justice. Such conduct would also be included in (3.), which, I think, further extends to cases where the facts complained of, though they do not give the plaintiff a cause of action, disclose a wrong to the public: King v. Gillard (2), by which I understand some criminal or quasi criminal misconduct, e.g., a fraud or crime or preparation for a fraud or crime, or possibly some act of serious oppression. Such conduct must, however, be in the course of the transaction complained of. If there is evidence of facts falling within the three classes above mentioned, then an appellate Court will not interfere with the discretion of the trial judge, even though they might not have come to the same finding of fact or exercised their discretion in the same way. (Emphasis added) [84] As pointed out by the learned Judge, both the cases Donald Campbell & Co and Ritter were cited with approval by the Federal Court in Mohamed Bin Hussin & Anor v Hashim Bin Said [1978] 1 MLJ 127. [85] In Mohamed Hussin the plaintiff, a member of the armed forces met with an accident while travelling in a car driven by another member of the armed forces. A suit was filed against inter alios the driver and his employer, the Government of Malaysia. The applicable provision, section 14 of the Government Proceedings Ordinance No. 58 of 1956, was interpreted such that the plaintiff’s right of action would cease if inter alia a certificate was issued by the Minister of Finance to the effect that the plaintiff would be compensated under service regulations. The relevant 30 certificates, including one from the Minister of Defence, were issued but was only served on the plaintiff some thirteen months after it was issued. As a result, the plaintiff’s action was withdrawn. However, notwithstanding the plaintiff’s withdrawal of the suit, costs were awarded to the plaintiff. The learned Judge, with whom the Federal Court agreed, stated as follows: 'Until the certificate was issued plaintiff has a good common law cause of action against first and second defendants and as the 2 letters had been sent before he instituted the action and there was no indication either from the Attorney-General's Chambers or the Ministry of Defence that such a certificate would be issued I considered it reasonable and proper that he be awarded the costs which he would not have incurred had the certificate been issued within a reasonable time after the two letters had been sent. The last letter was sent more than a month before the action was instituted.’ (Emphasis added) [86] Thus, in Mohamed Hussin, the plaintiff had a good claim which was only rendered unnecessary after he was made aware that the relevant certificates had been issued. [87] The circumstances in Suit 332 were, with respect, quite different. The learned Judge had dismissed the claim to impeach the JID in the Recovery Action. The learned Judge had concluded that the JID could not be faulted even if the judgment in the Liability Action may have been said to have been obtained by fraud, no doubt fundamentally because the JID was based on a valid judgment obtained in the Liability Action, which judgment itself had not been set aside or impeached. 31 [88] Indeed, the learned Judge also pointed out that the Insurer should have participated and contested the Recovery Action as it was a named party. Even if it had inadvertently omitted to instruct solicitors to defend the claim, the Insurer could have applied to set aside the JID but failed to do so. Instead, the Insurer chose to file a separate action to impeach the JID. [89] The commencement of Suit 332 and its dismissal could not in the circumstances be attributed to any fault on the part of the Claimant. Suit 332 was commenced by the Insurer after judgment had been obtained in the Liability Action. The Claimant’s conduct in defending Suit 332 cannot be faulted as he had the law on his side. The Claimant could not be faulted even in regard to the subject matter of the Insurer’s complaint because the Insurer’s complaint was in respect of the JID in the Recovery Action, which was a judgment that cannot be said to have been wrongfully or illegally obtained as it was based on a valid judgment in the Liability Action. [90] Why the Insurer did not take the more obvious step of impeaching the judgment in the Liability Action itself and/or applying to set aside the JID in the Recovery Action, are questions that may properly be posed. The Court however, will not enter into any speculation as to what the answers might be. [91] We observed that in the trial of Suits 121 and 332, the learned Judge had gone into the evidence and had held that: 32 ’42. … , I was satisfied that the insurer had proven that the accident had not occurred in the manner claimed by the claimant, and that as a consequence, there had been an attempt to make a false insurance claim against the insurer.’ [92] In our view, a declaration under section 96(3) of the RTA is one in respect of the validity or enforceability of an insurance policy. It is not a declaration as to the validity or otherwise of any claim that is or may be made against the policy. Fine though the distinction may be, it nevertheless exists. [93] The primary concern of a declaration under section 96(3) of the RTA is with the validity or enforceability of the contract of insurance between the Insurer and the Insured. [94] In the case at hand, if it be proven that the accident did not take place as alleged by the Claimant and the Rider, all it would mean is that the Claimant’s claim will fail and the Insured would not encounter any obligation to pay under the Insurance Policy. That per se, however, does not render the Insurance Policy itself void or unenforceable as a contract between the Insurer and the Insured. In this regard it is observed that there was no allegation in the Statement of Claim in Suit 121 that the Insurer had repudiated or terminated the Insurance Policy whether by reason of any breach on the part of the Insured or for any other reason. [95] It also follows that the proper venue to contest the Claimant’s claim, the validity of which was in substance the Insurer’s complaint, was in the Liability Action and not by way of a collateral action in an application for a declaration under section 96(3) of the RTA. 33 [96] In not contesting the Claimant’s claim in the Liability Action, the Insurer had in fact allowed the Claimant the opportunity to prove his claim in that suit and in respect of which a valid judgment had been entered by the Sessions Court. That judgment remains a valid judgment of a Court of law. Until that judgment is set aside it is valid and enforceable (see Isaacs v Robertson [1985] AC 97; Badiaddin bin Mohd Mahidin v Arab Malaysian Finance Berhad [1998] 2 CLJ 75). [97] In the circumstances, we do not see how the Claimant, the Insured or the Rider could be faulted for defending Suits 121 and 332 or how the orders for costs against them, despite having successfully defended Suits 121 and 332, could be justified. [98] We find no special grounds connected with Suits 121 and 332 such as would displace the general rule that costs are to follow the event and that the successful parties should be awarded costs. Conclusion [99] Suraya Othman JCA and Azizah Nawawi JCA have both perused and considered the draft of this judgment and have expressed their concurrence with it. [100] For the reasons given above, the Insurer’s appeal in Appeal 1711 was dismissed with costs. The Insured’s and the Rider’s cross-appeals were allowed with costs here and below. [101] As for Appeal 1704, the Claimant’s appeal was allowed with costs here and below and that part of the order of the High Court dated 16th 34 August 2019 which extended the injunction granted against the Claimant from enforcing the JID obtained in the Recovery Action and the costs ordered, were set aside. Dated this 7th day of October 2020 - sgd - (DARRYL GOON SIEW CHYE) JUDGE COURT OF APPEAL MALAYSIA PUTRAJAYA CASES: CITED Ahmad Nadzrin bin Abd Halim & Anor v Allianz General Insurance Co (M) Bhd [2015] 6 MLJ 223 Badiaddin bin Mohd Mahidin v Arab Malaysian Finance Berhad [1998] 2 CLJ 73 Badiaddin bin Mohd Mahidin v Arab Malaysian Finance Berhad [1998] 2 CLJ 75 Chia Tien Foh & Ors v Lo Man Heng & Ors [2015] 1 LNS 1219 Chong Keat Realty Sdn Bhd v Ban Hin Lee Bank Bhd [2003] 3 CLJ 532 35 CIMB Investment Bank Bhd v Metroplex Holdings Sdn Bhd [2014] 9 CLJ 1012 Donald Campbell & Co Ltd v Pollak [1927] AC 732 Hew Hooi Chun v KL Teksi Radio Bhd [2010] 4 CLJ 657 Isaacs v Robertson [1985] AC 97 Jayakumar Rajoo Mohamad v CIMB Aviva Takaful Bhd [2015] 9 CLJ 552 Kazakhstan Kagazy v Zhunus [2016] EWHC 1048 (Comm) Letchumanan Gopal v Pacific Orient & Co Sdn Bhd [2011] 5 CLJ 866; [2011] 4 MLJ 541 Masri v Consolidated Contractors [2009] QB 503 Mohamed Bin Hussin & Anor v Hashim Bin Said [1978] 1 MLJ 127 Nishimatsu Construction Co Ltd v Kecom Sdn Bhd [2009] 2 MLJ 404 Ottway v Jones [1955] 2 All ER 585 Pacific & Orient Insurance Co Berhad v Goh Cheng Loong & Ors [2013] 1 LNS 1002 Pacific & Orient Insurance Co Bhd v Muniammah Muniandy [2011] 1 CLJ 947 Pacific & Orient Insurance Co Bhd v Rasip Hamsudi & Ors [2017] 4 CLJ 572) Ritter v Godfrey [1920] 2 K.B. Serac Asia Sdn Bhd v Sepakat Insurance Brokers Sdn Bhd [2013] 6 CLJ 673 36 Siskina (Owners of Cargo Lately Laden on Board) and Others Respondents and Distos Compania Naviera S.A. Appellants [1979] AC 210 Sivakumar A/L Varatharaju Naidu v Ganesan A/L Retanam [2010] 7 MLJ 355 Tenaga Nasional Berhad v Teobros Development Sdn Bhd [2008] 6 MLJ 391 Yeap Tick In v Pacific & Orient Insurance Co Bhd [2020] MLJU 223 LEGISLATION AND LEGAL TEXT CITED Section 14 of the Government Proceedings Ordinance No. 58 of 1956 Section 96(1) and 96(3) of the Road Transport Act 1987 Counsel/Solicitors For the Appellant : R. Kamalanathan (Vinod R. Kamalanathan with him) Tetuan Vinod Kamalanathan & Associates Suite 501, 5th Floor, Loke Yew Building 4 Jalan Mahkamah Persekutuan 50050 Kuala Lumpur Tel. No. 03-2691 8501 Fax. No. 03-2691 3501 37 For the Respondent : Ellen Cheran (V. Gobi and Mendeep Singh with her) Tetuan V.Gobi & Assoc No. 19, 1st Floor, Jalan Genuang Perdana, Taman Genuang Perdana 85000 Segamat, Johor Tel. No. 07-9435 157 / 07-9435 257 Fax. No. 07-943 5357 G. Ravi Tetuan G.Ravi No. 193, Level 1 Jalan Sutera, Taman Sentosa 80150 Johor Bahru Johor Tel. No. 07-3339788 Fax. No. 07-3339990