CASH KEY (IPOH) SDN BHD WAN MOHD FADZIL BIN MAAMOR & ANOTHER

CASH KEY (IPOH) SDN BHD WAN MOHD FADZIL BIN MAAMOR & ANOTHER

The appeal is allowed because the 2nd and 3rd defendants were not parties to the settlement agreement and therefore not liable under it; the Sessions Court's order directing them to pay RM163,500 is set aside. The obligation to pay the sum rested on the 1st defendant, and the recorded consent judgment was set aside due to lack of approval from the official assignee for the bankrupt party.

Citation
WA-12BNCVC-8-01/2020 (Mahkamah Tinggi)
Parties
Appellant (2nd Defendant in Original Action): Wan Mohd Fadzil bin Maamor; Appellant (3rd Defendant in Original Action): Eddin Syazlee bin Shith; Respondent (plaintiff in Original Action): Cash Key (Ipoh) Sdn Bhd; 1st Defendant (original Action): Dr Nik Zamri bin Abdul Majid; 4th Defendant (original Action): Ahmad Fadhli bin Salleh; 5th Defendant (original Action): Joso Development Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
23 September 2020
Case Number
WA-12BNCVC-8-01/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court / Judgment on Appeal (appeal Allowed)
Outcome
Appeal allowed; Sessions Court judgment insofar as it directed the 2nd and 3rd defendants to pay RM163,500 set aside.
Legal Topics
Privity of Contract, Settlement Agreement, Consent Judgment, Set Aside Consent Judgment, Liability of Stakeholders/solicitors
Source Language
Malay/English
Contract Law Civil Procedure Bankruptcy Law Privity of Contract Settlement Agreement Consent Judgment Set Aside Consent Judgment Liability of Stakeholders/solicitors

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Parties

Wan Mohd Fadzil bin Maamor

Appellant (2nd Defendant in Original Action)

Eddin Syazlee bin Shith

Appellant (3rd Defendant in Original Action)

Cash Key (Ipoh) Sdn Bhd

Respondent (plaintiff in Original Action)

Dr Nik Zamri bin Abdul Majid

1st Defendant (original Action)

Ahmad Fadhli bin Salleh

4th Defendant (original Action)

Joso Development Sdn Bhd

5th Defendant (original Action)

Procedural Posture

Civil Appeal From Sessions Court / Judgment on Appeal (appeal Allowed)

Legal Issues

  1. 1 Whether the 2nd and 3rd defendants were parties to the settlement agreement and therefore liable to pay the outstanding RM163,500
  2. 2 Whether privity of contract exists between the plaintiff and the 2nd and 3rd defendants
  3. 3 Whether the consent judgment was valid without approval of the official assignee for a bankrupt party

Ratio Decidendi

The appeal is allowed because the 2nd and 3rd defendants were not parties to the settlement agreement and therefore not liable under it; the Sessions Court's order directing them to pay RM163,500 is set aside. The obligation to pay the sum rested on the 1st defendant, and the recorded consent judgment was set aside due to lack of approval from the official assignee for the bankrupt party.

Court Disposition

Appeal allowed; Sessions Court judgment insofar as it directed the 2nd and 3rd defendants to pay RM163,500 set aside.

Orders

  • Order set aside the decision directing the 2nd and 3rd defendants to pay RM163,500 to the plaintiff