AHMAD ZAKI BIN EMBI HALAL DEVELOPMENT CORPORATION BERHAD

AHMAD ZAKI BIN EMBI HALAL DEVELOPMENT CORPORATION BERHAD

On the balance of probabilities the court found plaintiff completed the works required for Phase 1 and Phase 2 and prepared Phase 3, that HDC breached express obligations (not providing adequate server and payment gateway, unjustified delays of UAT and withheld payments), that many complaints were enhancements not defects and HDC had by conduct waived strict FAT/RFS conditions; plaintiff validly rescinded under s40 Contracts Act 1950 and is entitled to compensation under s74/76 and release of the retention sum. Therefore the plaintiff's claim is allowed and the defendant's counterclaim dismissed.

Citation
BB-B52NCvC-47-08/2021 (Mahkamah Sesyen)
Parties
Plaintiff in BB B52 Ncv C 47 08/2021; Defendant in BB B52 Ncv C 63 10/2021: Ahmad Zaki Bin Embi; Defendant in BB B52 Ncv C 47 08/2021; Plaintiff in BB B52 Ncv C 63 10/2021: Halal Development Corporation Berhad
Court
Sessions Court
Jurisdiction
Malaysia
Judgment Date
4 October 2023
Case Number
BB-B52NCvC-47-08/2021 (Mahkamah Sesyen)
Procedural Posture
Civil: Contractual Dispute Over Services and Payments / Trial Judgment (full Trial Concluded)
Outcome
Plaintiff's claim in Guaman 47 allowed with costs; Defendant's claim in Guaman 63 dismissed with costs
Legal Topics
Breach of Contract, Termination and Rescission, Liquidated Damages, User Acceptance Testing (uat) and Acceptance Procedures, Estoppel and Variation by Conduct, Remedies: Damages and Retention Sums
Source Language
Malay/English
Contract Law Civil Procedure Construction and Services Contracts Evidence Breach of Contract Termination and Rescission Liquidated Damages User Acceptance Testing (uat) and Acceptance Procedures +2 more

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Parties

Ahmad Zaki Bin Embi

Plaintiff in BB B52 Ncv C 47 08/2021; Defendant in BB B52 Ncv C 63 10/2021

Halal Development Corporation Berhad

Defendant in BB B52 Ncv C 47 08/2021; Plaintiff in BB B52 Ncv C 63 10/2021

Procedural Posture

Civil: Contractual Dispute Over Services and Payments / Trial Judgment (full Trial Concluded)

Legal Issues

  1. 1 Whether the plaintiff completed contractual deliverables required by the agreement
  2. 2 Whether the defendant repudiated the contract by failing to provide infrastructure, payment gateway and by delaying UATs
  3. 3 Whether alleged defects were defects or enhancements and whether contractual notice requirements were complied with

Ratio Decidendi

On the balance of probabilities the court found plaintiff completed the works required for Phase 1 and Phase 2 and prepared Phase 3, that HDC breached express obligations (not providing adequate server and payment gateway, unjustified delays of UAT and withheld payments), that many complaints were enhancements not defects and HDC had by conduct waived strict FAT/RFS conditions; plaintiff validly rescinded under s40 Contracts Act 1950 and is entitled to compensation under s74/76 and release of the retention sum. Therefore the plaintiff's claim is allowed and the defendant's counterclaim dismissed.

Court Disposition

Plaintiff's claim in Guaman 47 allowed with costs; Defendant's claim in Guaman 63 dismissed with costs

Orders

  • Claim of Plaintiff in Guaman 47 allowed with costs
  • Claim of Defendant in Guaman 63 dismissed with costs