1. ) PEMBINAAN LERCAST SDN. BHD 2. ) LERCAST ALDEWAY SDN. BHD. CHEK SAM BINTI SALLEH

1. ) PEMBINAAN LERCAST SDN. BHD 2. ) LERCAST ALDEWAY SDN. BHD. CHEK SAM BINTI SALLEH

The Court of Appeal allowed the appeal, finding the High Court had erred in some factual appreciation but concluded the Project was no longer viable; applying its statutory powers under s69(4) Courts of Judicature Act 1964 the court declared the Joint Venture Agreement, Supplementary Agreement, Manager Agreement and Power of Attorney terminated forthwith, varied the High Court judgment accordingly and made consequential orders (return of title, removal of caveat, refund of the specified deposit, no damages awarded and parties to bear their own costs). The Supplemental Agreement's mutual termination clause precluded unilateral termination but the court nonetheless terminated the agreements...

Citation
P-02(NCvC)(W)-1311-08/2024 (Mahkamah Rayuan)
Parties
Appellant / First Defendant in High Court: Pembinaan Lercast Sdn Bhd; Appellant / Second Defendant in High Court: Lercast Aldeway Sdn Bhd; Respondent / Plaintiff in High Court: Chek Sam binti Salleh
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
13 January 2026
Case Number
P-02(NCvC)(W)-1311-08/2024 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed in part; High Court judgment varied; JVA, SA, MA and Power of Attorney terminated; parties to bear their own costs
Legal Topics
Joint Venture Agreement, Termination for Breach, Vacant Possession and Squatters, Power of Attorney, Supplementary Agreement, Declaratory Relief, Costs
Source Language
Malay/English
Contract Law Property Law Civil Procedure Equity Joint Venture Agreement Termination for Breach Vacant Possession and Squatters Power of Attorney +3 more

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Parties

Pembinaan Lercast Sdn Bhd

Appellant / First Defendant in High Court

Lercast Aldeway Sdn Bhd

Appellant / Second Defendant in High Court

Chek Sam binti Salleh

Respondent / Plaintiff in High Court

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the Appellants repudiated or materially breached the Joint Venture Agreement and related agreements thereby entitling the Respondent to terminate
  2. 2 Whether the obligation to secure vacant possession of the land lay with the developer (Appellants) or the landowner (Respondent) under the JVA, Manager Agreement and Supplemental Agreement
  3. 3 Whether the Supplemental Agreement barred unilateral termination and required mutual consent

Ratio Decidendi

The Court of Appeal allowed the appeal, finding the High Court had erred in some factual appreciation but concluded the Project was no longer viable; applying its statutory powers under s69(4) Courts of Judicature Act 1964 the court declared the Joint Venture Agreement, Supplementary Agreement, Manager Agreement and Power of Attorney terminated forthwith, varied the High Court judgment accordingly and made consequential orders (return of title, removal of caveat, refund of the specified deposit, no damages awarded and parties to bear their own costs). The Supplemental Agreement's mutual termination clause precluded unilateral termination but the court nonetheless terminated the agreements...

Court Disposition

Appeal allowed in part; High Court judgment varied; JVA, SA, MA and Power of Attorney terminated; parties to bear their own costs

Orders

  • Declaration that the Joint Venture Agreement dated 28 July 2015 is terminated
  • Declaration that the Power of Attorney dated 28 July 2015 is terminated