Public Islamic Bank Berhad v Edwin Cassian a/l Nagappan @ Marie

Appellant(s): Public Islamic Bank Berhad

Respondent(s): Edwin Cassian A/L Nagappan @ Marie

• YAA Datuk Hajah Azizah binti Haji Nawawi
• YA Dato' Collin Lawrence Sequerah
• YA Dato Alwi Bin Abdul Wahab

• A hire-purchase agreement was entered into for a vehicle, where the hirer subsequently defaulted on instalment payments.
• As the hirer had paid more than 75% of the cash price, the owner obtained *ex parte* leave from the Magistrates' Court under Section 16(1A) of the Hire-Purchase Act 1967 (HPA 1967) to commence repossession procedures.
• The hirer successfully appealed to the High Court, which set aside the *ex parte* leave order, contending that such an application must be made *inter partes* and that the *ex parte* order violated natural justice.

• Whether an application for leave to repossess goods under Section 16(1A) of the Hire-Purchase Act 1967 (HPA 1967) must be made *inter partes* or can be made *ex parte*.
• Whether granting *ex parte* leave for repossession under Section 16(1A) HPA 1967, without prior service of the order, violates the principles of natural justice and the *audi alteram partem* rule.
• The interpretation of Section 16(1A) and (1B) HPA 1967 and Order 85A of the Rules of Court 2012 regarding the procedural requirements for obtaining such leave.

• The Court of Appeal held that an application for leave under Section 16(1A) HPA 1967 is a procedural safeguard to verify statutory conditions (over 75% payment, two defaults) and does not need to be *inter partes*.
• The leave granted under Section 16(1A) merely permits the owner to *commence* the statutory notice process, not to repossess the vehicle directly; the actual right to be heard is enshrined in the subsequent Fourth Schedule notice.
• The Court found that the *ex parte* application for leave does not breach natural justice, as its purpose is narrow and specific, and the hirer's rights are protected by the subsequent statutory notice requirements. The Court therefore allowed the appeal, reinstating the Magistrate's decision.