CHASE PERDANA BHD v. MD AFENDI BIN HAMDAN [2006] 5 CLJ 563 HC. [26] The Court has an unqualified discretion to grant a stay of execution. However, the Court will only grant stay if there are special circumstances. It is trite law that in civil litigation, the Court will not deprive a successful party of the fruits of his litigation. In criminal litigation, there must be special circumstances or nugatory effect (which is often called “the nugatory principle”) before a stay is granted. [27] The filing of a notice of appeal shall not operate as a stay of execution, but the Court may, on application, and on sufficient cause being shown, stay the execution on such terms as it may think fit. O. 56 R. 1 (4) Rules of Court 2012; s. 73 COURT OF JUDICATURE ACT 1964. S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 10 [28] The procedure for a stay application may be done either by the stay of execution be applied for orally if it is applied immediately after the decision or order has been made by the Judge or the Court. In such an event, no formal written application and no supporting affidavit need be filed. [29] However, if the Magistrate / Judge does not wish to entertain an oral application for stay, then he may indicate or direct that the unsuccessful party should make a formal written application vide a Notice of Application which is supported by affidavit. Such application for stay should be made as early as possible and the Cause Papers must be served on the adversary party. [30] The law relating to the granting of a stay of proceedings is settled. The court must exercise its discretion as to what is the fairest mode, after taking into consideration all the relevant matters, which exist between the parties. Put differently, the court may exercise its discretion whenever it is just and reasonable to do so, so as to ensure that justice is done to both the parties. It is entirely an exercise of discretion, pure and simple. These principles of law are reflected in Halsbury’s Laws of England, 4th edition, reissue, vol. 37 at p. 290 at para. 926: In general a stay of proceedings arises under an order of the court which puts a stop or 'stay' on the further conduct of the proceedings in that court at the stage which they have then reached, so that the parties are precluded thereafter from taking any further step in the proceedings. The object of the order is to avoid the trial or hearing of the claim taking place, where the court thinks it is just and convenient to make the order, to prevent undue prejudice being occasioned to the opposite party or to prevent the abuse of process. The order is made generally in the exercise of S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 11 the court's discretionary jurisdiction, and by way of summary process, that is without a trial on the substantive merits of the case, and, at any rate in the exercise of its inherent jurisdiction, an order for the stay of proceedings is made very sparingly and only in exceptional circumstances. (see MCAT GEN SDN BHD v. CELCOM (M) BHD (NO 2) [2007] 10 CLJ 375). [31] In BOARD OF GOVERNORS OF SEKOLAH MENENGAH ST. GABRIEL v. RANJIT SINGH [1969] 1 LNS 16; [1970] MLJ 38 where his Lordship, Justice Raja Azlan Shah (as His Majesty then was) aptly said at p. 39 of the report: I hold the view that a stay of proceedings is a matter of discretion and the court must exercise its discretion as to what is the fairest mode, upon taking all matters into consideration of trying the several disputes which exist between the parties. In one case one consideration may have more sway, more cogency, and more effect than that same consideration, perhaps, may have in another. Putting it in another way, the court must exercise its discretion whenever it is just and reasonable to do so. [32] His Lordship, Justice Zakaria Yatim, in BANK BUMIPUTRA MALAYSIA BERHAD & ANOR. v. LORRAIN ESME OSMAN, BANK BUMIPUTRA MALAYSIA BERHAD & ANOR. v. LORRAIN ESME OSMAN & ORS [1987] 1 CLJ 572 said the same thing in these salient words: The law on this point has developed in England over the years. I shall start with the case of ST. PIERRE v. SOUTH AMERICAN STORES (GATH & CHAVES) LTD. [1936] 1 K.B. 382. In that case the Court decided that a mere balance of convenience was not a S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 12 sufficient ground for depriving a plaintiff of the advantages of prosecuting his action in an English Court. The Court laid down two requirements to be satisfied in order to justify a stay. Firstly, the defendant must satisfy the Court that the continuance of the action would work an injustice because it would be oppressive or vexatious to him or would be an abuse of the process of the Court. Secondly, the stay must not cause injustice to the plaintiff. The burden of proving both requirements was on the defendant. [33] His Lordship, Justice Abdul Malik, in analysing the law, said this, “Even if the merits of the appeal were to be considered as was considered by his Lordship, Justice Brown, in SERANGOON GARDEN ESTATE LTD. v. ANG KENG [1953] 1 LNS 98; [1953] 19 MLJ 116, the plaintiff’s appeal to the Court of Appeal, so submitted the defendant, has no good prospects of success. It was a case of transferring the S4 suit to the S6 court and the S4 suit to be heard after the S6 suit has been heard. It was as simple as that. It looks like the D4 suit would be heard next month (June 2007) as was said by the plaintiff. And if that is really true, then the trial of the S6 suit would surely be heard after the D4 suit. No one knows the outcome of the trial of the D4 suit. It is to be heard by another judge. It is because of the “potential disaster of inconsistent verdicts” (to borrow the words of Justice Lai Kew Chai, in BARING FUTURES (SINGAPORE) PTE LTD (IN LIQUIDATION) v. DELOITTE & TOUCHE (A FIRM) & ANOR [1997] 3 SLR 312) or the fear of “two inconsistent judgments” (to borrow the words of his Lordship, Chief Justice (Malaya) Raja Azlan Shah (as His Majesty then was) in CENTRAL SECURITIES (HOLDINGS) BHD. v. HARON BIN MOHAMED ZAID [1979] 2 MLJ 244, 251) that I made those orders as I did in the first judgment. I wonder why the defendant in the D4 suit did not apply to transfer the D4 suit to this court! It would certainly save time and costs.” (see MCAT GEN SDN BHD v. CELCOM (M) BHD (NO 2) [2007] 10 CLJ 375). S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 13 [34] Further his Lordship, said - “At the outset, I must categorically say that the plaintiff has failed to disclose a single fact or issue that would amount to a special circumstance. In fact, the plaintiff’s affidavits failed to make any reference to the existence of any special circumstances. The plaintiff’s application for a stay was premised on two considerations, namely: (a) pending an appeal to the Court of Appeal against my decision; and (b) pending the full and final determination of the trial of the D4 suit. With respect, these two considerations cannot constitute special circumstances unless the plaintiff can show that my decision dated 11 December 2006 as reflected in the first judgment had caused an injustice in that it was oppressive or vexatious to the plaintiff or that it would amount to an abuse of the process of the court. Additionally, the plaintiff must establish that the stay of the present proceedings would not cause an injustice to the defendant” [35] In MCPHAIL v. PERSONS, NAMES UNKNOWN [1973] 1 Ch 447, at 460, Lord Denning MR said that in the case of a mortgagee who seeks possession of a dwelling house, that - The Court has power by statute (Administration of Justice Act 1970, s. 36(2)) to suspend the order. This goes to show that, apart from statute, the Court would have no such power. [36] His Lordship, Justice NH Chan said in CHE WAN DEVELOPMENT SDN. BHD. v. CO-OPERATIVE CENTRAL BANK BHD. [1989] 1 CLJ Rep 366 - It seems to me to be plain that the Court has no general inherent jurisdiction to grant a stay of execution beyond the jurisdiction S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 14 given by certain statutes (such as s. 36(2) of the English Administration of Justice Act 1970 and, in this country, such as s. 73 of the Courts of Judicature Act 1964 ) or by the Rules of the High Court (such as O. 47, r. 1 ).No authority can be produced showing that such a jurisdiction exists outside the power conferred by rules of Court or by statute. The Court, therefore, has no inherent jurisdiction (because no power has been conferred under rules of Court or by statute) to stay or suspend the execution of the judgment or order for possession of land against a trespasser; see McPhail v. Persons, names unknown, supra. [37] Section 73 Courts of Judicature Act 1964 is similar to the provisions of the English RSC, O. 59, r. 13(1). See also Halsbury’s Laws of England, 4th Edition., Vol. 17 [1976], p. 272, para. 454 which reads: Except so far as the Court below or the Court of appeal may otherwise direct, an appeal does not operate as a stay of execution or of proceedings under the decision of the Court below, and no intermediate act or proceeding is invalidated by an appeal. [38] This is what Halsbury’s Laws of England says on the effect of the English O. 59, r. 13(1); 4th Edition., Vol. 17 [1976], at p. 272, para. 455: The Court has an absolute and unfettered discretion as to the granting of refusing of a stay, and as to the terms upon which it will grant it, and will, as a rule, only grant a stay if there are special circumstances, which must be deposed to an affidavit unless the application is made at the hearing. [39] And the position is this country is as stated by his Lordship, Justice Hashim Yeop Sani (as he then was) in SYARIKAT BERPAKAT v. LIM KAI KOK [1983] 1 MLJ 406, at 407: S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 15 The law on the granting of an order for stay of execution has been examined a number of times in the Courts of this country. It is trite law that the Court has an absolute and unfettered discretion to grant or refuse an application for stay. As a rule the Court will however only grant stay if there are special circumstances and which circumstances must be deposed in the affidavit supporting the application. The governing principle in all cases where the Court is asked to exercise its discretion is clearly expressed by Brown J in SERANGOON GARDEN ESTATE LTD. V. ANG KENG [1953] 1 LNS 98 and the principle is this: the Court will not deprive a successful party of the fruits of his litigation until an appeal is determined, unless the unsuccessful party can show special circumstances to justify it. [40] The principle enunciated here goes back to many years ago as can be seen in MONK v. BARTRAM [1891] 1 QB 346. In that case stay had been refused by the trial Judge and in the Court of Appeal it was held that where a stay of execution has been refused by the Trial Court an application made in a Court of Appeal for a stay pending appeal must be supported by special circumstances and allegations that there has been misdirection or that the verdict or judgment was against the weight of evidence, or that there was no evidence to support the verdict or judgment are not special circumstances. Lord Esher MR in the Court of Appeal when refusing the application for stay said: We have made inquiries, and find that the practice in the Divisional Court has been similar to that as to appeals in this Court in cases of trials before a Judge without a jury. It has never been the practice in either case to stay execution after the Judge at the trial has refused to grant it, unless special circumstances are shown to exist. S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 16 [41] The Court of Appeal in MING ANN HOLDINGS SDN BHD v. DANAHARTA URUS SDN BHD [2002] 3 CLJ 380 held that, “The approach taken by most judges appears to be that a successful litigant should not be deprived of the fruits of a judgment obtained in his favour, unless there are special circumstances (or special grounds) that justify a stay of execution to be granted. The weight of authorities consider that special circumstances must be special, not ordinary, common or usual circumstances and that go to the execution of the judgment and not to the validity or correctness of the judgment (or merits of the appeal). The most important factor for consideration in granting a stay appears to be whether the appeal, if successful, is rendered nugatory. It does not matter whether the nugatory factor is considered under the head of “special circumstances”, so long as it is considered.” [42] In KOSMA PALM OIL MILL SDN BHD & ORS v. KOPERASI SERBAUSAHA MAKMUR BHD [2004] 1 CLJ 239; [2004] 1 MLJ 257, the Federal Court said this, It is therefore clear beyond doubt that there are many factors that may constitute special circumstances and the fact that an appeal would be rendered nugatory if stay was refused is the most common one. It is an example of special circumstances. In other words special circumstances is the genus of which nugatoriness is a species. If it has been shown that an appeal would be rendered nugatory if stay was refused what it means is that a special circumstance has been established. Thus they cannot be treated as separate heads and one cannot be an alternative to the other. Neither can one be accepted or rejected in favour of the other as they are inter-related. S/N YYeJChIrj0O/kmFvjxhHfw November 28, 2021 17 ... The onus is on the applicants to demonstrate the existence of special circumstances to justify the grant of a stay of execution. The reasons must relate to the enforcement of the judgment. They must be deposed in the affidavit filed in support of the application. [43] In KOSMA PALM OIL MILL SDN BHD & ORS v. KOPERASI SERBAUSAHA MAKMUR BHD [2003] 4 CLJ 1 where the Federal Court made the following observations: