Cosmo Maju Sdn Bhd Erallex Sdn Bhd Law Hock Meng

Cosmo Maju Sdn Bhd Erallex Sdn Bhd Law Hock Meng

Appellate court upheld the Sessions Court finding that the 74 doors were defective and that rectification costs of RM92,452.84 were properly awarded, but set aside the orders requiring Cosmo Maju to dismantle, re-supply, reinstall and paint the doors because those orders exceeded the supplier's contractual scope, amounted to specific performance of services the court could not supervise and would unjustly enrich the buyer. The court allowed Cosmo Maju's claim for unpaid value RM189,728.90 subject to set-off of RM92,452.84, resulting in RM97,276.06 payable by Erallex and Law Hock Meng with interest; appeal allowed in part with costs RM10,000.

Citation
BA-12BNCvC-2-01/2020 (Mahkamah Tinggi)
Parties
Appellant (perayu): Cosmo Maju Sdn Bhd; Respondent (1st Respondent): Erallex Sdn Bhd; Respondent (2nd Respondent): Law Hock Meng
Court
High Court
Jurisdiction
Malaysia
Judgment Date
25 August 2020
Case Number
BA-12BNCvC-2-01/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / Judgment on Appeal After Consolidation of Suits
Outcome
Appeal allowed in part; Sessions Court orders for dismantling, replacement and painting of doors set aside; rectification damages RM92,452.84 affirmed; Cosmo Maju's claim for unpaid value RM189,728.90 allowed subject to set-off; net RM97,276.06 payable by Erallex and Law Hock Meng with interest; costs awarded.
Legal Topics
Breach of Contract, Specific Performance, Set Off, Damages, Appellate Review/plainly Wrong Test, Director's Guarantee, Rectification Costs
Source Language
Malay/English
Contract Sale of Goods Remedies Specific Performance Civil Procedure Evidence Breach of Contract Set Off +4 more

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Parties

Cosmo Maju Sdn Bhd

Appellant (perayu)

Erallex Sdn Bhd

Respondent (1st Respondent)

Law Hock Meng

Respondent (2nd Respondent)

Procedural Posture

Civil Appeal / Judgment on Appeal After Consolidation of Suits

Legal Issues

  1. 1 Whether Cosmo Maju is entitled to unpaid price of goods (RM189,728.90)
  2. 2 Whether the 74 two-hour fire-rated doors conformed with contract specifications
  3. 3 Whether defects were discoverable on reasonable examination

Ratio Decidendi

Appellate court upheld the Sessions Court finding that the 74 doors were defective and that rectification costs of RM92,452.84 were properly awarded, but set aside the orders requiring Cosmo Maju to dismantle, re-supply, reinstall and paint the doors because those orders exceeded the supplier's contractual scope, amounted to specific performance of services the court could not supervise and would unjustly enrich the buyer. The court allowed Cosmo Maju's claim for unpaid value RM189,728.90 subject to set-off of RM92,452.84, resulting in RM97,276.06 payable by Erallex and Law Hock Meng with interest; appeal allowed in part with costs RM10,000.

Court Disposition

Appeal allowed in part; Sessions Court orders for dismantling, replacement and painting of doors set aside; rectification damages RM92,452.84 affirmed; Cosmo Maju's claim for unpaid value RM189,728.90 allowed subject to set-off; net RM97,276.06 payable by Erallex and Law Hock Meng with interest; costs awarded.

Orders

  • Items (1) to (3) of Sessions Court order dated 23.12.2019 (dismantle, remove, re-supply, re-install and paint 74 doors) set aside
  • Item (4) of Sessions Court order (award RM92,452.84 as special damages for rectification) affirmed