NOBBY ENGINEERING (M) SDN BHD MMN BINA SDN BHD

NOBBY ENGINEERING (M) SDN BHD MMN BINA SDN BHD

The High Court allowed the appeal, finding that the factual matrix — representations by MMN Bina's managing director, communications using MMN Bina email and contact with MMN Bina employees, prior dealings between the parties and the manner the work order was issued — established a contractual relationship (including a collateral contract) binding MMN Bina. The Sessions Court erred by failing to give weight to those representations and contextual evidence; MMN Bina is liable to pay the outstanding RM204,607.55 to Nobby Engineering.

Citation
CA-12BNCvC-2-08/2022 (Mahkamah Tinggi)
Parties
Perayu/plaintif: Nobby Engineering (M) Sdn Bhd; Responden/defendan Pertama: MMN Bina Sdn Bhd; Defendan Kedua: MMN Infrra Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
18 May 2023
Case Number
CA-12BNCvC-2-08/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal (contract/dispute Over Payment) / High Court Hearing Appeal From Sessions Court Judgment Dated 17 October 2022
Outcome
Appeal allowed; Sessions Court judgment dated 17 October 2022 set aside
Legal Topics
Existence of Contract, Collateral Contract, Parol Evidence Rule (s92 Evidence Act 1950), Burden of Proof (s101 Evidence Act 1950), Subcontractor Payment Dispute
Source Language
Malay/English
Contract Evidence Civil Procedure Agency/principal Existence of Contract Collateral Contract Parol Evidence Rule (s92 Evidence Act 1950) Burden of Proof (s101 Evidence Act 1950) +1 more

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Parties

Nobby Engineering (M) Sdn Bhd

Perayu/plaintif

MMN Bina Sdn Bhd

Responden/defendan Pertama

MMN Infrra Sdn Bhd

Defendan Kedua

Procedural Posture

Civil Appeal (contract/dispute Over Payment) / High Court Hearing Appeal From Sessions Court Judgment Dated 17 October 2022

Legal Issues

  1. 1 Whether a contract existed between Nobby Engineering and MMN Bina
  2. 2 Whether representations by MMN Bina's director (SD4) created a collateral contract binding MMN Bina
  3. 3 Whether the parol evidence rule / s92 Evidence Act 1950 precluded admitting oral representations

Ratio Decidendi

The High Court allowed the appeal, finding that the factual matrix — representations by MMN Bina's managing director, communications using MMN Bina email and contact with MMN Bina employees, prior dealings between the parties and the manner the work order was issued — established a contractual relationship (including a collateral contract) binding MMN Bina. The Sessions Court erred by failing to give weight to those representations and contextual evidence; MMN Bina is liable to pay the outstanding RM204,607.55 to Nobby Engineering.

Court Disposition

Appeal allowed; Sessions Court judgment dated 17 October 2022 set aside

Orders

  • Appeal allowed and Sessions Court judgment set aside
  • MMN Bina Sdn Bhd ordered to pay Nobby Engineering (M) Sdn Bhd RM204,607.55