PLAZA PREMIUM LOUNGE MALAYSIA SDN. BHD. v MALAYSIA AIRPORTS (SEPANG) SDN. BHD.

ba-22ncvc-290-07-2024 High Court (Mahkamah Tinggi) 16 January 2025 • BA-22NCvC-290-07/2024 • 23 min read
18 cases cited (1 SG, 17 foreign)

Catchwords

INTERLOCUTORY APPLICATION - An interim injunction against the defendant to preserve the status quo of the premises pending the disposal of the main suit - The plaintiff seeks to restrain the defendant, a subsidiary of Malaysia Airport Holdings Berhad, which operates Malaysia International Airports, KLIA Terminal 1 and KLIA Terminal 2, from exercising its right to terminate the plaintiff for a breach of authorised use - The Plaintiff is operating one Airport Lounge (Plaza Premium Lounge) and three Food & Beverage Outlets which are Flight Club Signature (FCS), The Summerhouse (TS) and Flight Club (FC) in KLIA 1 - Defendant is responsible for the management, operation, maintenance and development of the KLIA - For KLIA Terminal 1, Defendant provides airport services to more than 23 million passengers annually and manages more than 100 tenants, ranging from core business types such as retail, food and beverages, services, and tenancies such as storage and offices - The defendant has rented out 56 food and beverage outlets at KLIA. Whether the defendant, as the landlord, can impose additional terms to prevent the plaintiff from conducting business-to-business (B2B) transactions at the FCS, TS, and FC after the tenancy has commenced - Whether the plaintiff provided complimentary corporate set meals to its customers at FCS FC and TS, and if so, whether that constituted a breach of the authorised business of the F&B outlets - Where does the balance of convenience lie – Whether damages are an adequate remedy in tenancy cases - The defendant operates critical public amenities and services within the airport- Defendant is to regulate and manage its tenants and limited spaces according to changes in passenger footfall and demand trends from time to time.

Practice Areas

Judges (1)

Counsel (7)

Parties (2)

Case Significance

Illustrates the court's reluctance to allow late amendments to pleadings or wide discovery close to a fixed trial date, especially on issues that could have been raised in an earlier amendment, so as not to disrupt trial preparation.

This High Court decision at Shah Alam concerns two interlocutory applications by the defendant in a dispute over the operation of an airport lounge, and it illustrates the court's reluctance to permit late amendments and wide discovery on the eve of trial. The plaintiff, part of a group operating airport lounges, dining areas and related services across many countries and airports, had sued the defendant, the operator of the relevant airport terminals, seeking to restrain the defendant from exercising a right to terminate the plaintiff for an alleged breach of authorised use, so as to preserve the status quo of the premises pending disposal of the main suit. In the course of that litigation the defendant applied to amend its amended defence and counterclaim under Order 20 rule 5 of the Rules of Court 2012, and separately applied for discovery of documents under Order 24.

The court considered both applications together against the stage the proceedings had reached. It noted that discovery may be refused where it would be oppressive to the party from whom it is sought, and that an amendment introducing new issues late in the day may be disallowed. The trial had already been fixed for December 2025 and the parties were preparing pre-trial cause papers; the defendant had previously amended its defence and counterclaim in September 2024 without including the issues now raised. In those circumstances the court considered that the case fell within the categories that prevented it from exercising its discretion in the defendant's favour.

The court dismissed both the amendment application and the discovery application, ordering costs of RM4,000 for each, subject to allocator. The judgment illustrates that a party who seeks to reshape its pleadings or to obtain wide discovery close to a fixed trial date, on issues it could have raised in an earlier amendment, faces a high hurdle, and that the court will guard against last-minute applications that would disrupt trial preparation.

What was the main suit about?

The plaintiff, an airport-lounge operator, sought to restrain the defendant, the operator of the airport terminals, from terminating it for an alleged breach of authorised use, so as to preserve the status quo of the premises pending disposal of the main suit.

What interlocutory applications did the defendant bring?

The defendant applied to amend its amended defence and counterclaim under Order 20 rule 5, and separately for discovery of documents under Order 24 of the Rules of Court 2012.

Why were both applications dismissed?

The trial was already fixed and pre-trial papers were being prepared; the defendant had earlier amended without raising these issues, and the court considered the amendment and wide discovery, sought late, fell within the categories preventing it from exercising its discretion in the defendant's favour. It dismissed both with costs of RM4,000 each.

Statutes Cited

Rules of Court 2012

Cases Cited (18)

SLR (1)
[1994] 1 SLR 513
UK (3)
[1904] 1 KB 295 [1932] 1 KB 254 [1932] 1 KB 423
MY (14)
[1981] 1 MLJ 225 [1983] 1 MLJ 213 [1993] MLJU 96 [1994] 2 CLJ 581 [2000] MLJU 822 [2004] 4 MLJ 398 [2004] 6 MLJ 235 [2007] MLJU 111 [2009] 4 MLJ 833 [2012] 4 MLJ 149 [2017] MLJU 1532 [2020] MLJU 1421 [2020] MLJU 2338 [2023] MLJU 1577

Judgment

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Read on eJudgment

Source: eJudgment (ba-22ncvc-290-07-2024)