The mode of service for ‘legal process’ must be specifically set out in the agreement

June 22, 2024

Our Tishondra Puspanathan acted as Counsel in a recent appeal at the Kuala Lumpur High Court. Tishon was successful in setting aside the judgment in default entered by the Sessions Court, with  Justice Atan Mustapha ,who heard the appeal, agreeing that the Judgment was irregular and ought to be set aside as of right. Of note is that the service clause (a corollary clause often not receiving much attention by clients)  in the Judgment Creditor’s loan agreement did not expressly include the usual “ legal process”,  instead referencing only ‘notices, requests and claims”. Justice Atan Mustapha agreed with our position that the lack of clarity must be construed against the Judgment Creditor such that the deeming provision in the service clause could not be relied upon and Order 10 ROC 2012 as recently applied by the Federal Court in Goh Teng Woo had to be satisfied. His Lordship also found that there was no delay in the Judgment Debtor moving the setting aside application given that the Judgment Creditor had never served the Judgment. The matter has been remitted back to the Sessions Court for Appearance/Defence to be filed.

[The broad grounds of judgment were pronounced in the High Court Appeal in WA-12ANCC-73-11/2023]

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