BUDAYA YNS SDN BHD REMBAU GALIAN SDN BHD

BUDAYA YNS SDN BHD REMBAU GALIAN SDN BHD

The Sand Excavation Agreements, properly construed, created a licence and agency arrangement permitting plaintiffs to occupy and extract sand as agent/licensee of the Malay landowner; they did not transfer, charge or otherwise dispose of a Malay holding within the meaning of the Malay Reservation Enactment, and therefore were not void. The defendant breached clause 2 by failing to execute documents to obtain permits and was obliged to return the RM200,000 security deposits to each plaintiff with interest at 5% per annum from 1 March 2017. The defendant's counterclaim for trespass succeeded only to the extent of nominal damages (RM1,000) because loss was not proved. Appellate intervention...

Citation
NA-12BNCC-3-07/2022 (Mahkamah Tinggi)
Parties
Appellant/defendant: Budaya YNS Sdn Bhd; Respondent/plaintiff: Rembau Galian Sdn Bhd; Respondent/plaintiff: Permata Ketara Sdn Bhd; Respondent/plaintiff: Pedas Galian Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
23 May 2023
Case Number
NA-12BNCC-3-07/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court (contract and Land Disputes) / High Court Judgment on Appeal (final Disposition)
Outcome
Appeal allowed in part and dismissed in part: the High Court affirmed that the Sand Excavation Agreements were not void and that the defendant must return deposits with interest; the defendant's appeal on the counterclaim for trespass was allowed to the extent of nominal damages; other grounds of appeal dismissed.
Legal Topics
Illegality Under Contracts Act S24, Malay Reservation Enactment S8/s19, Licence Versus Lease, Trespass (occupational Trespass), Security Deposit and Set Off, Interest on Deposits, Nominal Damages, Appellate Review of Findings of Fact
Source Language
Malay/English
Contract Law Property/land Law Administrative Law Civil Procedure Illegality Under Contracts Act S24 Malay Reservation Enactment S8/s19 Licence Versus Lease Trespass (occupational Trespass) +4 more

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Parties

Budaya YNS Sdn Bhd

Appellant/defendant

Rembau Galian Sdn Bhd

Respondent/plaintiff

Permata Ketara Sdn Bhd

Respondent/plaintiff

Pedas Galian Sdn Bhd

Respondent/plaintiff

Procedural Posture

Civil Appeal From Sessions Court (contract and Land Disputes) / High Court Judgment on Appeal (final Disposition)

Legal Issues

  1. 1 Whether the Sand Excavation Agreements were illegal and void under section 24 Contracts Act 1950 by contravening section 19 of the Malay Reservation Enactment
  2. 2 Whether the agreements transferred, charged or otherwise disposed of a Malay holding (section 8)
  3. 3 Whether the defendant breached clause 2 by failing to execute documents for permits

Ratio Decidendi

The Sand Excavation Agreements, properly construed, created a licence and agency arrangement permitting plaintiffs to occupy and extract sand as agent/licensee of the Malay landowner; they did not transfer, charge or otherwise dispose of a Malay holding within the meaning of the Malay Reservation Enactment, and therefore were not void. The defendant breached clause 2 by failing to execute documents to obtain permits and was obliged to return the RM200,000 security deposits to each plaintiff with interest at 5% per annum from 1 March 2017. The defendant's counterclaim for trespass succeeded only to the extent of nominal damages (RM1,000) because loss was not proved. Appellate intervention...

Court Disposition

Appeal allowed in part and dismissed in part: the High Court affirmed that the Sand Excavation Agreements were not void and that the defendant must return deposits with interest; the defendant's appeal on the counterclaim for trespass was allowed to the extent of nominal damages; other grounds of appeal dismissed.

Orders

  • Budaya YNS Sdn Bhd to repay each plaintiff RM200000 (security deposit) together with interest at 5.0 per cent per annum from 1 March 2017 until payment
  • Permata Ketara Sdn Bhd, Rembau Galian Sdn Bhd and Pedas Galian Sdn Bhd to deliver payment of recovered deposits as ordered