Jaks Resources Berhad Star Media Group Berhad

Jaks Resources Berhad Star Media Group Berhad

The Court of Appeal held the interlocutory High Court findings in the originating summonses were tentative and not final; res judicata/issue estoppel did not bar JRB/JIC from litigating the completion date and related construction issues in the substantive suits. Order 14A disposal was inappropriate because material facts were genuinely in dispute; therefore the High Court decision striking out defences/counterclaims was set aside and the matters were remitted for full trial.

Citation
W-02(IM)(NCvC)-1122-08/2020 (Mahkamah Rayuan)
Parties
Appellant (appeal W 02(im)(ncvc) 1122 08/2020); Defendant; Corporate Guarantor: Jaks Resources Berhad; Respondent (appeal W 02(im)(ncvc) 1122 08/2020); Plaintiff: Star Media Group Berhad; Respondent (appeal W 02(im)(ncvc) 1435 10/2020); Co Defendant/co Plaintiff in Underlying Suit: Jaks Island Circle Sdn Bhd
Court
IM
Jurisdiction
Malaysia
Judgment Date
27 July 2021
Case Number
W-02(IM)(NCvC)-1122-08/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeals to Court of Appeal From High Court Decisions in Construction/arbitration Disputes Involving Bank Guarantees / Court of Appeal Judgment Remitting Underlying High Court Suits for Full Trial; Appeal Allowed in Part and Interlocutory Orders Set Aside
Outcome
Court of Appeal allowed Jaks Resources Berhad's appeal (W-02(IM)(NCVC)-1122-08/2020), set aside the High Court Order of 7.8.2020, dismissed Star Media's related appeals and remitted the underlying High Court suits for full trial
Legal Topics
Banker’s Guarantee, Unconscionability, Order 14 a Rules of Court (summary Disposal), Issue Estoppel/res Judicata, Deemed Completion Clause, Liquidated Damages Vs Penalty
Source Language
Malay/English
Contract Law Construction Law Arbitration Law Civil Procedure Equity (res Judicata/issue Estoppel) Bank Guarantee Law Banker’s Guarantee Unconscionability +4 more

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Parties

Jaks Resources Berhad

Appellant (appeal W 02(im)(ncvc) 1122 08/2020); Defendant; Corporate Guarantor

Star Media Group Berhad

Respondent (appeal W 02(im)(ncvc) 1122 08/2020); Plaintiff

Jaks Island Circle Sdn Bhd

Respondent (appeal W 02(im)(ncvc) 1435 10/2020); Co Defendant/co Plaintiff in Underlying Suit

Procedural Posture

Civil Appeals to Court of Appeal From High Court Decisions in Construction/arbitration Disputes Involving Bank Guarantees / Court of Appeal Judgment Remitting Underlying High Court Suits for Full Trial; Appeal Allowed in Part and Interlocutory Orders Set Aside

Legal Issues

  1. 1 Whether an interlocutory High Court finding in originating summonses restraining call on bank guarantees (BGs) as to the extended completion date is binding on parties and their privies in subsequent substantive suits (res judicata/issue estoppel)
  2. 2 Whether the disputes arising from the SPA are amenable to summary disposal under Order 14A of the Rules of Court 2012
  3. 3 Whether an injunction to restrain the beneficiary from calling a BG requires a finding of unconscionability or fraud

Ratio Decidendi

The Court of Appeal held the interlocutory High Court findings in the originating summonses were tentative and not final; res judicata/issue estoppel did not bar JRB/JIC from litigating the completion date and related construction issues in the substantive suits. Order 14A disposal was inappropriate because material facts were genuinely in dispute; therefore the High Court decision striking out defences/counterclaims was set aside and the matters were remitted for full trial.

Court Disposition

Court of Appeal allowed Jaks Resources Berhad's appeal (W-02(IM)(NCVC)-1122-08/2020), set aside the High Court Order of 7.8.2020, dismissed Star Media's related appeals and remitted the underlying High Court suits for full trial

Orders

  • Set aside High Court decision of Justice CL Wong dated 7.8.2020 (Order 14A/O 18/O 81 disposals)
  • Allow Appeal W-02(IM)(NCVC)-1122-08/2020 by Jaks Resources Berhad and remit KLHC Suit No. WA-22NCvC-258-04/2019 for trial