WRP Asia Pacific SDN BHD V Tenaga Nasional B
WRP Asia Pacific SDN BHD V Tenaga Nasional B
WRP Asia Pacific SDN BHD V Tenaga Nasional B
A against the respondent to challenge the exercise of its power under s 38 of the
Act read together with other relevant sections of the Act and/or the Licensee
Supply Regulations 1990.
Held, dismissing the appeal with costs and affirming the order of the High
B Court:
(1) The appellant failed to establish that the impugned matter fell under the
realm of public law. The court was satisfied the matter fell squarely under
private law and that the basis of the appellant’s appeal was outside the
ambit of judicial review. An arguable case would not be disclosed and the
C
orders sought for granted at the High Court if leave was given (see para
26).
(2) The respondent had established a private relationship with the appellant
when they mutually signed a contract of supply. The relationship was
D commerce-based and the appellant was expected to keep its part of the
bargain by not tampering with the electricity meter which would cause
losses to the respondent. The Court of Appeal was right in concluding the
facts came within a commercial or contractual environment (see paras
20–21).
E
(3) The letter and the two documents were sent out due to the wrongful
tampering of the electricity meter on account of a breach of private law
(see para 22).
(4) Section 38 of the Act empowered the respondent to discontinue
F electricity supply based on the subjective finding of its employee that an
offence had been committed under s 37(1), (3) or (14). The respondent
had complied with all the necessary requirements under the Act. If it was
later found to have breached its contractual or statutory obligation, the
appellant could take action against the respondent. Hence, the appellant
G was not without a remedy (see para 25).
[Bahasa Malaysia summary
Bertindak atas maklumat yang diterima, responden menyerbu kilang perayu
dan mendapati meter elektriknya telah diusik menyebabkan ia gagal untuk
H merekodkan penggunaan elektrik yang betul. Usikan tersebut telah
menyebabkan perayu dikenakan bayaran kurang sebanyak RM5,485,463.87.
Berikutan s 38 Akta Bekalan Elektrik 1990 (‘Akta’), responden menghantar
notis kepada perayu bahawa ia telah melakukan kesalahan di bawah s 37(3)
Akta dan rang undang-undang bagi amaun yang kurang tersebut (‘kedua-dua
I dokumen tersebut’). Satu surat yang melampirkan kedua-dua dokumen
tersebut memerlukan jumlah bil diselesaikan dalam tempoh 14 hari di mana
jika gagal, bekalan elektrik akan dipotong. Perayu memohon kepada
Mahkamah Tinggi di bawah K 53 Kaedah-Kaedah Mahkamah Tinggi 1980
untuk mendapatkan kebenaran bagi permohonan semakan kehakiman
298 Malayan Law Journal [2012] 4 MLJ
Notes
For cases on judicial review in general, see 2(2) Mallal’s Digest (4th Ed, 2010
C Reissue) paras 4797–4807.
Cases referred to
Ahmad Jefri bin Mohd Jahri @ Md Johari v Pengarah Kebudayaan & Kesenian
Johor & Ors [2010] 3 MLJ 145, FC (refd)
D Chief Constable of North Wales Police v Evans [1982] 3 All ER 141, HL (refd)
Claybricks & Tiles Sdn Bhd lwn Tenaga Nasional Bhd [2007] 1 MLJ 217; [2006]
4 CLJ 892, CA (refd)
IRC v National Federation of Self-Employed and Small Businesses Ltd [1982] AC
617, HL (refd)
E
Mohamed Nordin bin Johan v Attorney-General, Malaysia [1983] 1 MLJ 68;
[1983] CLJ (Rep) 271, FC (refd)
Queen v Minister of Energy and Director General of Electricity Supply ex parte
Robert Guildford [1998] EWHC Admin 203, QBD (refd)
F Tang Kwor Ham & Ors v Pengurusan Danaharta Nasional Bhd & Ors [2006] 5
MLJ 60; [2006] 1 CLJ 927, CA (refd)
Tenaga Nasional Bhd v Ong See Teong & Anor (suing on their behalf and for all
parties who are the owners or tenants of the Kampung Sungai Terentang —
which was served with a notice under ss 13 and 16 of the Electricity Supply Act
G 1990) [2010] 2 MLJ 155, FC (distd)
Tenaga Nasional Bhd v Tekali Prospecting Sdn Bhd [2002] 2 MLJ 707; [2002] 3
AMR 3082, CA (refd)
Yahya bin Kassim v Government of Malaysia & Anor [1997] 3 MLJ 749; [1997]
4 AMR 3687, CA (refd)
H
Legislation referred to
Companies Act 1965
Courts of Judicature Act 1964
Electricity Supply Act 1990 ss 13, 37(1), (3), (14), 38, 38(1)
I Specific Relief Act 1950
Rules of the High Court 1980 O 53, O 53 rr 2(4), 3, 3(6)
Appeal from: Civil Appeal Nos W-02–647 of 2010 and W-02–649 of 2010
(Court of Appeal, Putrajaya)
300 Malayan Law Journal [2012] 4 MLJ
A
Robert Low (CL Tan and Ahmad Shahrizal with him) (Ranjit Ooi & Robert Low)
for the appellant.
Shamsul Bolhassan (Nadia Hanim Tajuddin with him) (Attorney General’s
Chambers) for the attorney general’s chambers.
Raja Ahmad Mohzanuddin Shah bin Raja Mohzan (Azmi & Associates) for the B
putative respondent.
C
[1] Leave was applied for at the High Court by the appellant pursuant to
O 53 r 3 of the Rules of the High Court 1980 (‘the Rules’), for a judicial review
of a decision made by Tenaga Nasional Bhd (‘the respondent’), a decision
which aggrieved the appellant. The High Court dismissed the leave
application. The appellant then filed the relevant appeal to the Court of Appeal
D
but was dismissed too.
[2] Being dissatisfied, the appellant forthwith applied for leave to appeal to
the Federal Court, with the question for determination being:
E
Whether judicial review lie against Tenaga Nasional Bhd to challenge the exercise of
its power conferred pursuant to s 38 of the Electricity Supply Act 1990 (read
together with other relevant sections of the Electricity Supply Act 1990 thereto
and/or applicable regulations pursuant to the Licensee Supply Regulations 1990
thereto)?
F
[3] The appellant was successful in its application and leave to appeal was
granted. We subsequently heard the appeal proper and today is for decision of
the appeal.
G
BACKGROUND FACTS
[4] The appellant runs and operates factories, and manufactures amongst
others, disposable latex and synthetic gloves. On information received, the
respondent on 14 November 2009 raided the appellant’s factory premises, and H
there found the electricity meter having been tampered with, causing it to fail
to record the correct usage of electricity. The respondent then discontinued the
electricity but reconnected it some eight hours later.
[5] Vide a letter dated 22 January 2010, in which were enclosed a Form A I
notice dated 22 January 2010 and a bill carrying No 2197471 (‘the two
documents’), all issued pursuant to s 38 of the Electricity Supply Act 1990 (‘the
Act’), the respondent notified the appellant that as a result of a meter inspection
carried out on 14 November 2009 at the factory premises, it was discovered
WRP Asia Pacific Sdn Bhd v Tenaga Nasional Bhd
[2012] 4 MLJ (Suriyadi FCJ) 301
A that the meter located there was found tampered with. The Form A notice was
issued in relation to the commission of an offence under s 37(3) of the Act. This
tampering had resulted in inaccurate reading of the electricity consumption
thus undercharging up to RM5,485,463.87. The bill details out the amount.
Through the letter the appellant was then instructed to pay that amount within
B 14 days, failing which the electricity supply would be disconnected on 5
February 2010.
[6] It was due to the dissatisfaction of the decision in the 22 January 2010
letter and the two documents that the appellant filed the application for a
C judicial review under O 53 of the Rules. But the appellant had to circumvent
the first hurdle ie the leave stage. It failed. The High Court when dismissing the
appellant’s application for leave held, inter alia, that there was no element of
discretion in the issuance of the notice under s 38(1) of the Act. Under it, once
it was discovered that there was evidence of meter tampering, the respondent
D was empowered to disconnect electricity supplied, subject to the issuance of a
notice. The High Court too opined that s 38(1) of the Act was drafted to
specifically safeguard the interest of the respondent and allow it to take
immediate action to prevent misuse of electricity. It was not open to the
appellant to challenge the power given to the respondent under the Act to
E disconnect electricity supply and to demand the amount claimed.
[7] At the Court of Appeal the appellant’s appeal was dismissed on the
ground that the relationship between the appellant and the respondent was
purely commercial or contractual. As the relationship came within an
F environment regulated by private law it was not open to the appellant to
challenge the respondent’s decision by judicial review, which was a public law
remedy. In dismissing the appellant’s appeal, the Court of Appeal relied on
Claybricks & Tiles Sdn Bhd lwn Tenaga Nasional Bhd [2007] 1 MLJ 217; [2006]
4 CLJ 892. This case relates to an erinford injunction application to prevent the
G TNB from disconnecting the supply of electricity to the plaintiff ’s premises.
Zulkefli Ahmad Makinudin JCA (as he was then) when dismissing the appeal
remarked:
TNB’s s 38 notice to disconnect the electricity supply for offences enumerated in s
H 7 need not prove the offences in court. The reason is that, any purported act to
review such act will defeat the swift enforcement under the Act where electricity
supply needs to be severed immediately to avoid further illegal usage by the
perpetrator. The nature of the act taken by TNB arose from a commercial
obligation on the part of the consumer rather than TNB’s obligation under public
I law.
[8] Zulkefli Ahmad Makinudin JCA also elaborated that s 38(1) of the Act
was enacted to give effective powers to TNB to instantly prevent any offence
that may be committed and not to be left unattended or unabated. It provided
302 Malayan Law Journal [2012] 4 MLJ
specifically for the preservation of TNB’s interest and empowers TNB to act A
expeditiously, thereby preventing misuse such as theft of electricity supplied by
TNB.
[10] Here, being dissatisfied with the decision of the respondent, the
appellant filed the judicial review application, to include amongst others the
order of certiorari (the others being for a declaration, prohibition order and an E
injunction). As fundamentally judicial review relates to the issue of
jurisdiction, the appellant desires to establish that the respondent had acted
without authority, thus rendering the decision as contained in the letter to be
void. A court order of certiorari will formally declare that decision to be
ineffectual in law. F
[11] This application was filed despite the respondent not being a public
authority. How then can the appellant succeed? By analogy MP Jain had
occasion to author in Administrative Law of Malaysia and Singapore (2nd Ed),
at p 462, ‘certiorari is issued not only to a statutory body but even to a G
non-statutory body which is under a duty to act judicially and performing a
public duty’.
[12] For purposes of its application the appellant had alluded to the statutory
route of O 53 of the Rules. Under this order two stages are anticipated, with the H
leave stage being the first, to be followed closely by the substantive hearing after
succesfully obtaining leave at the High Court. At the leave stage, on a quick
perusal of the material available, if the court thinks that subsequently at the
substantive hearing stage an arguable case may be disclosed, and the relief
sought may be granted, leave should be granted (IRC v National Federation of I
Self-Employed and Small Businesses Ltd [1982] AC 617). In Malaysia, the
Federal Court in Mohamed Nordin bin Johan v Attorney-General, Malaysia
[1983] 1 MLJ 68; [1983] CLJ (Rep) 271 when allowing the appeal, opined
that ‘the point taken was not frivolous to merit refusal of leave in limine and
WRP Asia Pacific Sdn Bhd v Tenaga Nasional Bhd
[2012] 4 MLJ (Suriyadi FCJ) 303
[13] Returning to the mainstream, the appeal before us relates to the first
C
stage ie the leave application. With both the High Court and the Court of
Appeal having rejected the leave application, we now begin by resolving certain
preliminary matters, namely whether the appellant has the necessary locus
standi, whether it has complied with the time factor, and whether the facts and
circumstances before us are amenable to judicial review.
D
[14] For purposes of deciding whether the appellant has the locus standi to
file the judicial review application O 53 r 2(4) of the Rules is relevant. It reads:
Any person who is adversely affected by the decision of any public authority shall be
E entitled to make the application.
[15] Appreciating the above provision, the person entitled to make the
application has to be any person who is adversely affected by the decision. As
F the facts are quite straightforward, no serious judicial activism is required here.
The appellant claimed that it was directly and adversely affected by the decision
of the respondent. Apart from the matter of the huge sum of RM5,485,463.87
which was required to be paid, there was also of the threat hanging over its head
like the Sword of Democles, in the event there was failure to comply with the
G letter. Any discontinuance of the electricity supply would cause untold grief to
the business of the appellant. A possibility of a prosecution being undertaken
under s 37(3) of the Act could not be discounted either. Having considered the
appellant’s submission we are satisfied that it is not a mere busybody but a
person that will be adversely affected by the decision of the respondent.
H
[16] We now touch on the legal requirement of whether the application was
made on time. For this purpose, O 53 r 3(6) of the Rules is relevant, and it
reads:
I An application for judicial review shall be made promptly and in any event within
40 days from the date when grounds for the application first arose or when the decision
is first communicated to the applicant provided that the Court may, upon application
and if it considers that there is a good reason for doing so, extend the period of 40
days.
304 Malayan Law Journal [2012] 4 MLJ
[18] With the basic requirements satisfied, the all important question to be
confronted, and which will forthwith resolve the question for determination, is
the legal interpretation of whether the respondent is excluded from any judicial
C
review due to the restrictions of O 53 of the Rules. This provision legislates that
only a decision made by a public authority is amenable to judicial review. It is
common ground that the respondent is a corporate body but provides public
functions regulated by the Act. So, does judicial review lie against the
respondent for the decision as reflected in the letter dated 22 January 2010 and
D
the two documents though not a public authority? The answer depends very
much on whether the action of the respondent falls within the public law
environment (Tenaga Nasional Bhd v Tekali Prospecting Sdn Bhd [2002] 2 MLJ
707; [2002] 3 AMR 3082). To quote Gopal Sri Ram JCA when discussing
whether TNB was amenable to judicial review:
E
So what answer is to be given to the question: does judicial review lie against the
appellant? In our view, the answer lies in two words. It depends.
If the activity of the appellant in the private law sphere is called into question, eg the
wrongful allotment or issuance of shares, the alleged wrongful removal of a director F
and the like, then, plainly judicial review will not lie. On the other hand, if the
activity complained of falls within the public law environment, then of course
judicial review will be available.
[19] It is admitted that the respondent’s decision in issuing the letter dated G
22 January 2010, and the two documents were exercised pursuant to a power
conferred by the Act particularly s 38. In truth when the respondent issued the
letter and the two documents, it was then exercising a power of an authoritative
body, though we must with haste clarify that not every decision of such body is
suitable for judicial review (Tenaga Nasional Bhd v Ong See Teong & Anor (suing H
on their behalf and for all parties who are the owners or tenants of the Kampung
Sungai Terentang — which was served with a notice under ss 13 and 16 of the
Electricity Supply Act 1990) [2010] 2 MLJ 155). In Ahmad Jefri bin Mohd Jahri
@ Md Johari v Pengarah Kebudayaan & Kesenian Johor & Ors [2010] 3 MLJ
145, James Foong FCJ had occasion to state: I
G
[23] This appeal is unlike the case of Tenaga Nasional Bhd v Ong See Teong &
Anor [2010] 2 MLJ 155, where TNB in exercise of its responsibility to the
public pursuant to s 13 of the Act, was freed of private law when it could enter
any land to undertake whatever was necessary for the purpose of maintaining,
H repairing or upgrading any licensed installation or any part thereof. And
without any relationship existing between TNB and the land owners at that.
TNB could fell, remove vegetation and do all other things necessary to fulfill
the above purpose as it was carrying out a public function under the Act.
I
306 Malayan Law Journal [2012] 4 MLJ
[25] Let us now scrutinise the letter. Even though the effect of the letter is
quite harsh, s 38 of the Act empowers the respondent to discontinue the supply
of electricity based on the subjective finding of its employee if any offence has
been found committed under s 37(1), 37(3) or 37(14). Despite holding the D
status of being the only supplier of electricity in the country the respondent has
clearly complied with all the necessary statutory requirements. It served the
appellant not only with the letter of 22 January 2010 but also the two
documents, documentations which are necessary prerequisites under the Act.
In the event the respondent was later found to have breached its obligation E
under the contract or its statuatory obligation the appellant may take up action
against the respondent. Hence, the appellant is not without a remedy.
CONCLUSION
F
[26] Even though satisfied that the appellant has successfully established the
issue of locus standi and factor of time, it failed to establish that the impugned
matter falls under public law realm. In fact we are satisfied that the matter falls
squarely under private law. In conclusion, despite the earlier error committed
by the respondent when it disconnected the electricity supply for eight hours, G
we are convinced that the basis of the appellant’s appeal is outside the ambit of
judicial review. We are satisfied that an arguable case will not be disclosed and
the orders sought for granted at the High Court if leave was given (Mohamed
Nordin bin Johan v Attorney-General Malaysia; Tang Kwor Ham & Ors v
Pengurusan Danaharta Nasional Bhd & Ors [2006] 5 MLJ 60). H
A Appeal dismissed with costs and order of the High Court affirmed.