Sim Kwang Kai, Adrian v Johnathan Wong Futt Po (WA-22NCC-544-08/2023)

SIM KWANG KAI, ADRIAN …DEFENDANTS (Passport No.: K1154449N)

CHEONG MUN HONG (IC No.: 641202-10-6699)

SIGNATURE HEALTHLAND SDN BHD (Company No.: 1239052-V) (melalui tuntutan balas)

[stay the entire proceedings]

This is a stay application dated 18-07-2025 [Enclosure 111] filed by Johnathan Wong Futt Po, [defendant to the Main Suit and the plaintiff in the counterclaim] to stay the entire proceedings. The alleged basis is that Cheong Hong Mun [sic, court - the correct name is Cheong Mun Hong], the 2nd defendant in the counterclaim is a bankrupt since 15 years ago i.e. 27-12-2010.

The 14-day trial is fixed to commence on 2, 3, 4, 8, 9, 10 September 2025 and continue on various dates in December 2025 and conclude in June 2026.

The alleged basis for stay is the need for Tetuan S. Sothi, Leong & Partners to obtain sanction to act for a bankrupt. They alleged their client Cheong Mun Hong [a bankrupt] the 2nd defendant in the counterclaim did not disclose to them he is a bankrupt since

It is also alleged by Tetuan M. Menon & Partners [solicitors for the defendant to the Main Suit and the plaintiff in the counterclaim] that they only did a belated bankruptcy search on 01-07-2025. These reasons are set out in Enclosure 111.

The plaintiff in the counterclaim also said they want to obtain leave from the bankruptcy court to proceed against Cheong Mun Hong [a bankrupt] the 2nd defendant in the counterclaim. [See Enclosure 111].

On 15-08-2025, I had dismissed the stay application as this is an old August 2023 suit. Under the court guidelines, there is a need to dispose of this old suit. If the trial dates fixed are vacated, the next available trial dates will only be from June 2027 onwards. Counsel should just get on and obtain the necessary leave or file a Proof of Debt so that the trial dates are not scuttled.

The plaintiff in the counterclaim has appealed to the Court of Appeal on 15-08-2025. These are my Grounds of Decision. Facts of the case Main Suit

The plaintiff pleaded that he gave RM 6,950,000 to Johnathan Wong Futt Po for the purpose of investment into companies owned by one Cheong Mun Hong.

The plaintiff sued Johnathan Wong Futt Po for fraud amounting to RM 3,225,000. Counterclaim

Johnathan Wong Futt Po, the defendant filed a Counterclaim against-i. The plaintiff; ii. Cheong Mun Hong; and iii. Signature Healthland Sdn Bhd

As against the plaintiff/1st defendant in the Counterclaim Johnathan Wong Futt Po pleaded, inter-alia, that he was in pari delicto when he undertook in the illegal exchange of cryptocurrency into Malaysian Ringgit as the plaintiff is fully aware that cryptocurrency is not legal tender and recognized currency in Malaysia. [See paragraph 51 Amended Statement of Defence and Counterclaim in Enclosure 29].

As against Cheong Mun Hong [a bankrupt]/2nd defendant in the Counterclaim and Signature Healthland Sdn Bhd, Johnathan Wong Futt Po claimed, inter-alia, the repayment of various sums of monies being friendly loans made to them. [See paragraph 72 Amended Statement of Defence and Counterclaim in Enclosure 29]. Court’s analysis

In Enclosure 111, the defendant/plaintiff in the counterclaim prayed that -

Bahawa segala prosiding di dalam tindakan ini digantung sementara pihak Plaintif dalam Tuntutan Balas mendapatkan kebenaran Mahkamah bankrapsi untuk memulakan dan meneruskan tindakan ini terhadap Cheong Hong Mun [Defendan Kedua dalam Tuntutan balas];

…

To stay the entire proceedings the burden is on the defendant to show there are special circumstances. [See AmBank (M) Bhd v Metal Reclamation (Industries) Sdn Bhd & Ors [2016] 10 CLJ 205, HC, and Ramachandran Meyappan & Ors v Chellapan K Kalimuthu & Ors [2019] 7 CLJ 788; [2019] MLJU 113, HC].

In my view, there are no special circumstances to stay the entire proceedings. The plaintiff has filed the suit in August 2023. He should be entitled to a speedy trial under our court guidelines.

The 14-day trial is fixed to commence on 2, 3, 4, 8, 9, 10 September 2025 and continue on various dates in December 2025 and conclude in June 2026. If the trial dates fixed are vacated the next available trial dates will only be from June 2027 onwards.

The suit should not be delayed due to the failure of the defendant’s solicitors to do a bankruptcy search way back in 2023 when suing Cheong Mun Hong [a bankrupt] the 2nd defendant in the counterclaim.

Further Cheong Mun Hong [a bankrupt] the 2nd defendant in the counterclaim has been a bankrupt since 15 years ago i.e. 27-12-

The defendant/plaintiff in the counterclaim can always file a proof of debt if he still thinks it is realistic to recover any monies from this bankrupt. But this should not be used as a reason to scuttle the trial dates.

For the reasons above, I dismiss the application to stay the entire proceedings. Dated: 19th August 2025 …………(signed)………….. Leong Wai Hong Judge High Court of Malaya Kuala Lumpur (NCC 6) Counsel for plaintiff: Mr. William Ch’ng Wei Lim Jeffrey Tan & Chng (Petaling Jaya) Counsel for 1st defendant: Muralee Menon and Vel Manoharan M. Menon & Partners (Kuala Lumpur) Counsel for 2nd defendant: Mr. Leong Khai Yan S. Sothi Leong & Partners (Kuala Lumpur) CASES REFERRED TO: 1) AmBank (M) Bhd v Metal Reclamation (Industries) Sdn Bhd & Ors [2016] 10 CLJ 205, HC. 2) Ramachandran Meyappan & Ors v Chellapan K Kalimuthu & Ors [2019] 7 CLJ 788; [2019] MLJU 113, HC.