PEPS-JV (MELAKA) SDN. BHD. VMG TRANSPORT (M) SDN. BHD.

PEPS-JV (MELAKA) SDN. BHD. VMG TRANSPORT (M) SDN. BHD.

The Court of Appeal affirmed the High Court: the Plaintiff proved the outstanding invoices and was entitled to RM1,917,495.86 and nominal damages for wrongful termination; the Plaintiff's suspension of services was lawful and the Defendant's purported termination was premature and wrongful; the Plaintiff failed to prove GST, lorry repair and expectation loss claims; the Defendant's counterclaim failed; appellate restraint applied to factual findings and no adverse inference was justified under s.114(g).

Citation
M-02(NCvC)(W)-1810-10/2024 (Mahkamah Rayuan)
Parties
Defendant in High Court; Appellant in CA Appeal M 02(ncv C)(w) 1810 10/2024; Respondent in Cross Appeal: PEPS-JV (Melaka) Sdn. Bhd.; Plaintiff in High Court; Appellant in CA Appeal M 02(ncv C)(w) 1811 10/2024; Respondent in Cross Appeal: VMG Transport (M) Sdn. Bhd.
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
22 January 2026
Case Number
M-02(NCvC)(W)-1810-10/2024 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal to the Court of Appeal Arising From High Court Civil Suit MA 22 Ncv C 14 03/2020 / Judgment on Appeal (final Disposition by Court of Appeal)
Outcome
Appeals dismissed; High Court judgment affirmed in all respects
Legal Topics
Breach of Contract, Termination, Damages (expectation and Nominal), Adverse Inference (s114 Evidence Act 1950), Invoice/dispute Procedures, GST Penalties
Source Language
Malay/English
Contract Evidence Civil Procedure Commercial Law Breach of Contract Termination Damages (expectation and Nominal) Adverse Inference (s114 Evidence Act 1950) +2 more

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Parties

PEPS-JV (Melaka) Sdn. Bhd.

Defendant in High Court; Appellant in CA Appeal M 02(ncv C)(w) 1810 10/2024; Respondent in Cross Appeal

VMG Transport (M) Sdn. Bhd.

Plaintiff in High Court; Appellant in CA Appeal M 02(ncv C)(w) 1811 10/2024; Respondent in Cross Appeal

Procedural Posture

Civil Appeal to the Court of Appeal Arising From High Court Civil Suit MA 22 Ncv C 14 03/2020 / Judgment on Appeal (final Disposition by Court of Appeal)

Legal Issues

  1. 1 Whether Plaintiff proved outstanding invoices under 2015 Contracts and 2018 Agreement
  2. 2 Whether adverse inference under s.114(g) Evidence Act 1950 should be drawn for failure to call witnesses
  3. 3 Whether suspension by Plaintiff or subsequent letter by Defendant amounted to repudiatory breach and lawful termination

Ratio Decidendi

The Court of Appeal affirmed the High Court: the Plaintiff proved the outstanding invoices and was entitled to RM1,917,495.86 and nominal damages for wrongful termination; the Plaintiff's suspension of services was lawful and the Defendant's purported termination was premature and wrongful; the Plaintiff failed to prove GST, lorry repair and expectation loss claims; the Defendant's counterclaim failed; appellate restraint applied to factual findings and no adverse inference was justified under s.114(g).

Court Disposition

Appeals dismissed; High Court judgment affirmed in all respects

Orders

  • High Court judgment affirmed
  • Award to Plaintiff (VMG) for outstanding invoices RM1,917,495.86