ARI UTARA SDN BHD 1. ) CF JAYA CONSTRUCTION SDN BHD 2. ) CHING FOO 3. ) LEE HOI LEN

ARI UTARA SDN BHD 1. ) CF JAYA CONSTRUCTION SDN BHD 2. ) CHING FOO 3. ) LEE HOI LEN

The deed of assignment operated only to assign interim payments from the main contractor as a mode of repayment; it did not contain any provision releasing the 1st defendant from personal liability nor transferring that liability to Proaktif, therefore the admitted debt remained payable by the 1st defendant and no triable issue was raised — summary judgment was appropriate and the strike out application failed.

Citation
PA-22NCvC-65-03/2021 (Mahkamah Tinggi)
Parties
Plaintiff: Ari Utara Sdn Bhd; 1st Defendant: CF Jaya Construction Sdn Bhd; 2nd Defendant: Ching Foo; 3rd Defendant: Lee Hoi Len
Court
High Court
Jurisdiction
Malaysia
Judgment Date
14 February 2022
Case Number
PA-22NCvC-65-03/2021 (Mahkamah Tinggi)
Procedural Posture
Civil Claim for Debt (goods Sold and Delivered) / Judgment on Applications (summary Judgment and Striking Out)
Outcome
Plaintiff's summary judgment allowed; defendants' striking out application dismissed.
Legal Topics
Deed of Assignment, Summary Judgment (order 14), Striking Out (order 18 R.19), Guarantee Liability, Assignment of Contractual Proceeds, Abuse of Process, Construction of Contracts
Source Language
Malay/English
Contract Civil Procedure Debt Recovery Corporate Guarantees Security/assignment Deed of Assignment Summary Judgment (order 14) Striking Out (order 18 R.19) +4 more

Case Brief

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Parties

Ari Utara Sdn Bhd

Plaintiff

CF Jaya Construction Sdn Bhd

1st Defendant

Ching Foo

2nd Defendant

Lee Hoi Len

3rd Defendant

Procedural Posture

Civil Claim for Debt (goods Sold and Delivered) / Judgment on Applications (summary Judgment and Striking Out)

Legal Issues

  1. 1 Whether the deed of assignment effected an absolute assignment that released the 1st defendant from liability
  2. 2 Whether the deed transferred the obligation to pay the plaintiff to the main contractor (Proaktif)
  3. 3 Whether the defendants raised any triable issue to defeat summary judgment

Ratio Decidendi

The deed of assignment operated only to assign interim payments from the main contractor as a mode of repayment; it did not contain any provision releasing the 1st defendant from personal liability nor transferring that liability to Proaktif, therefore the admitted debt remained payable by the 1st defendant and no triable issue was raised — summary judgment was appropriate and the strike out application failed.

Court Disposition

Plaintiff's summary judgment allowed; defendants' striking out application dismissed.

Orders

  • Enclosure 10 (defendants' striking out application) dismissed with costs.
  • Enclosure 6 (plaintiff's summary judgment application) allowed with costs.