STAR MEDIA GROUP BERHAD 1. ) JAKS RESOURCES BERHAD 2. ) JAKS ISLAND CIRCLE SDN. BHD.

STAR MEDIA GROUP BERHAD 1. ) JAKS RESOURCES BERHAD 2. ) JAKS ISLAND CIRCLE SDN. BHD.

Interlocutory findings in Originating Summonses dismissing injunctions to restrain calls on BGs were tentative and not final; res judicata/issue estoppel did not bar JAKS/JIC from litigating the extended completion date or other disputed factual issues at trial; Order 14A disposal was inappropriate because material facts and expert/industry matters were in dispute; High Court order striking out JRB's defence and counterclaim was set aside and matters remitted for trial.

Citation
W-02(IM)(NCvC)-1435-10/2020 (Mahkamah Rayuan)
Parties
Appellant (civil Appeal No. W 02(im)(ncvc) 1122 08/2020); Respondent/defendant (in Other Consolidated Appeals): JAKS Resources Berhad; Appellant (civil Appeal Nos. W 02(im)(ncvc) 1188 09/2020 and W 02(im)(ncvc) 1435 10/2020); Respondent (in Appeal 1122): Star Media Group Berhad; Respondent/plaintiff in Underlying Proceedings and Respondent in Appeal 1435: Jaks Island Circle Sdn Bhd
Court
IM
Jurisdiction
Malaysia
Judgment Date
27 July 2021
Case Number
W-02(IM)(NCvC)-1435-10/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeals From High Court (construction Contract Disputes; Injunctions Restraining Call on Bank Guarantees; Order 14 a Applications) / Court of Appeal Judgment (31 July 2023); Appeals Allowed/dismissed and Matters Remitted to High Court for Trial
Outcome
Allowed JAKS Resources Berhad's appeal (No.1122); set aside High Court decision of 7.8.2020 that struck out JRB's defence and counterclaim; dismissed Star Media's appeals (Nos.1188 and 1435); remitted underlying suits to High Court for full trial; costs to be in the cause.
Legal Topics
Call on Banker's Guarantee, Interim Injunctions, Order 14 a Rules of Court (summary Disposal), Deeming Clause/certificate of Completion and Compliance, Unconscionability Test for Restraining Guarantees, Issue Estoppel/res Judicata, Liquidated Damages Vs Penalty
Source Language
Malay/English
Contract Law Construction Law Arbitration Law Civil Procedure Bank Guarantees Equity (unconscionability) Res Judicata/issue Estoppel Call on Banker's Guarantee +6 more

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Parties

JAKS Resources Berhad

Appellant (civil Appeal No. W 02(im)(ncvc) 1122 08/2020); Respondent/defendant (in Other Consolidated Appeals)

Star Media Group Berhad

Appellant (civil Appeal Nos. W 02(im)(ncvc) 1188 09/2020 and W 02(im)(ncvc) 1435 10/2020); Respondent (in Appeal 1122)

Jaks Island Circle Sdn Bhd

Respondent/plaintiff in Underlying Proceedings and Respondent in Appeal 1435

Procedural Posture

Civil Appeals From High Court (construction Contract Disputes; Injunctions Restraining Call on Bank Guarantees; Order 14 a Applications) / Court of Appeal Judgment (31 July 2023); Appeals Allowed/dismissed and Matters Remitted to High Court for Trial

Legal Issues

  1. 1 Whether a finding on extended completion date made in interlocutory Originating Summons restraining a call on BG is binding (res judicata/issue estoppel) on subsequent trial of underlying disputes
  2. 2 Whether disputes of fact in the construction contract are amenable to summary disposal under Order 14A ROC
  3. 3 Whether call on BG should be restrained absent unconscionable conduct by beneficiary

Ratio Decidendi

Interlocutory findings in Originating Summonses dismissing injunctions to restrain calls on BGs were tentative and not final; res judicata/issue estoppel did not bar JAKS/JIC from litigating the extended completion date or other disputed factual issues at trial; Order 14A disposal was inappropriate because material facts and expert/industry matters were in dispute; High Court order striking out JRB's defence and counterclaim was set aside and matters remitted for trial.

Court Disposition

Allowed JAKS Resources Berhad's appeal (No.1122); set aside High Court decision of 7.8.2020 that struck out JRB's defence and counterclaim; dismissed Star Media's appeals (Nos.1188 and 1435); remitted underlying suits to High Court for full trial; costs to be in the cause.

Orders

  • Set aside High Court Order of Justice CL Wong dated 7.8.2020 (striking out Defence and Counterclaim in Suit 258)
  • Allow Appeal W-02(IM)(NCVC)-1122-08/2020 (JRB) and dismiss Appeals W-02(IM)(NCVC)-1188-09/2020 and W-02(IM)(NCVC)-1435-10/2020 (Star Media)