Federal Court to hear dispute over expulsion of Penang Swimming Club president

 Apex court grants leave on questions surrounding interpretation of club rules.

The dispute centres on disciplinary proceedings against former Penang Swimming Club president Chan Kean Hin over decisions made by the club’s management committee during his presidency. (Facebook pic)

PUTRAJAYA:

The Federal Court has granted leave to appeal to Dr Lee Ville, a public officer of the Penang Swimming Club, in a disciplinary dispute involving the expulsion of former club president Chan Kean Hin.

A three-member bench comprising Justices Nordin Hassan, Ahmad Terrirudin Salleh and Che Ruzima Ghazali granted leave today on three questions of law, finding that they met the threshold under Sections 96 and 97 of the Courts of Judicature Act 1964.

The appeal stems from the Court of Appeal’s decision on March 11 last year overturning a Penang High Court ruling delivered by Justice Quay Chew Soon on Nov 26, 2024.

The dispute centres on disciplinary proceedings against Chan over decisions made by the club’s management committee during his presidency.

The complaints involved the reinstatement of a member beyond the number of times permitted under the club rules, and the waiver of recovery of certain court-awarded costs owed to the club.

Chan challenged the disciplinary committee’s jurisdiction to hear the complaints.

The High Court dismissed his application, finding, among other things, that the management committee was not above the club’s rules and could be subjected to disciplinary proceedings.

The court also found that Chan had failed to exhaust his internal remedies before initiating court proceedings.

However, at an extraordinary general meeting he convened to hear his appeal, the club’s general body subsequently affirmed his expulsion.

The Court of Appeal, chaired by Justice Lim Chong Fong, took a different view, ruling that the disciplinary committee had acted ultra vires the club rules.

It held that the rules allowed the committee to deal with complaints concerning members’ personal conduct in their use of club facilities, but not their participation in collective management committee decisions.

The Federal Court will now consider questions of general importance, including whether club and association rules should be interpreted liberally and purposively or strictly, like commercial contracts, and whether courts should consider members’ wishes when interpreting such rules.

Lee is represented by Karin Lim, A Suppiah and Nicholas Lim, while Daphne Choy and Amanda Lo are acting for Chan. - FMT