In a landmark judgment, the Federal Court today overruled a six-year-old authority that denied parties to appeal against interlocutory orders originally made at the Court of Appeal.

Reversing the binding authority of Lam Kong Co Ltd vs Tong Guan Co Pte Ltd - decided by former chief justice Mohamed Dzaiddin Abdullah in 2000 - the court ruled that interlocutory orders originally granted by the Appeals Court were appealable to the apex court.

"We are unanimous of the view that the Court of Appeal had no original jurisdiction under Section 44 of the Court of Judicature Act (under which the interlocutory orders are made) and that the orders are appealable to the Federal Court," said Chief Justice Sheikh Ahmad Fairuz ( left ) who headed a five-member panel of judges.

The previous authority stated that only matters which originated from the High Court could be appealable to the Federal Court, and not matters that concerned the original jurisdiction of the Court of Appeal.

The court made the decision when ruling in favour of Metramac Corporation Sdn Bhd in its challenge against an injunction by the Court of Appeal dated Oct 25, 2005 which barred the company from disposing its assets until its appeal against Fawziah Holdings was disposed.

Ahmad Fairuz, who sat with Federal Court judges Pajan Singh Gill, Allaudin Mohd Sherif, Richard Malanjum and S Augustine Paul, also awarded cost to Metramac.

"The full written judgment will be delivered in due course," said the chief justice.

No arguments offered

The court was able to reach the decision after counsel Dr Cyrus Das - representing Fawziah Holdings - offered no arguments to oppose Metramac's application for leave to appeal against the injunction.

"We are not opposing to the leave application and we leave it to the court to frame the questions that are to be argued at the appeal," said the lawyer.

Ahmad Fairuz however said that the no-contest plea by Fawziah Holdings forced the court to make a ruling on the substance of the issue involved which was whether the Court of Appeal had an original jurisdiction.

After a 40-minute stand down, the court made the brief ruling.

On March 6, the court ruled that Metramac could challenge the injunction although it had been dissolved.

The injunction was issued in the cause of the appeal between Metramac and Fawziah Holdings, which was awarded RM65 million over a breach of contract dispute.

The case attracted public attention when Gopal - in his judgment - accused tycoon Halim Saad and his former business partner Anuar Othman of siphoning RM32.5 million from Metramac under the patronage of former Finance Minister Daim Zainuddin

Halim and Daim have since obtained leave to expunge the remarks made by the judge.