Ketua Pengarah Jabatan Penyiaran Malaysia & Anor v Vertex Blue Consulting Sdn Bhd

Appellant(s):

• Ketua Pengarah Jabatan Penyiaran Malaysia
• Kerajaan Malaysia

Respondent(s): Vertex Blue Consulting Sdn Bhd

• YAA Dato' Abu Bakar Bin Jais
• YAA Tan Sri Hasnah binti Dato' Mohammed Hashim
• YA Dato' Seri Vazeer Alam bin Mydin Meera

• The respondent, an advertising and media services provider, entered into a Concession Agreement with the appellants (RTM, under the Malaysian Government) to act as an independent sales agent.
• The appellants terminated the agreement, alleging breach by the respondent, and counterclaimed for damages, while the respondent sued for unlawful termination and damages.
• During High Court proceedings, the respondent obtained an "unless order" for discovery against the appellants, stipulating that non-compliance would result in their defence and counterclaim being struck out and judgment entered for the respondent.

• Whether a trial judge is bound by an interlocutory "unless order" that effectively grants summary judgment or judgment in default, particularly when it involves declaratory relief.
• Whether a default judgment granting declaratory relief can be made without the Court considering the merits of the case and an evidential basis.
• Whether such a default judgment, if granted without an evidential basis, complies with the provisions of Order 73 of the Rules of Court 2012 and Section 42 of the Government Proceedings Act 1956.

• The Federal Court held that a default judgment containing a declaratory order cannot be made without the benefit of any evidence on which the Court could properly exercise its discretion.
• Declarations are a form of specific relief subject to the Court's discretion, requiring some level of scrutiny of the claim's merits and an evidential basis, even if the defendant has not responded.
• The Federal Court found that the High Court and Court of Appeal erred in affirming the default judgment, as it was irregularly entered without supporting evidence, and thus, the trial judge was not bound by the "unless order" to grant such a judgment based on mere non-compliance. The appeal was allowed, and the matter remitted to the High Court for trial.