CRCC MALAYSIA BERHAD 1. ) M101 ENTITY SDN BHD 2. ) M101 HOLDINGS SDN BHD 3. ) YAP TING HAU, DATO' 4. ) DATIN CHAN HENG SI

CRCC MALAYSIA BERHAD 1. ) M101 ENTITY SDN BHD 2. ) M101 HOLDINGS SDN BHD 3. ) YAP TING HAU, DATO' 4. ) DATIN CHAN HENG SI

On the evidence the plaintiff proved breach of contract by the 1st Defendant through failure to pay certified interim sums; the expiry of the performance bond did not justify withholding payment where defendant had not promptly raised the issue and sought to rely on it only after defaulting on payments; the purported Line of Credit arrangement was not contractually concluded and could not defeat the plaintiff's claim; the plaintiff's suspension was contractually justified and the defendant's termination was wrongful—consequently judgment was entered for the plaintiff against the 1st Defendant for RM38,277,862.45 with interest and costs, while claims against the 2nd, 3rd and 4th Defendants...

Citation
WA-22C-70-07/2020 (Mahkamah Tinggi)
Parties
Plaintiff: CRCC Malaysia Berhad; 1st Defendant: M101 Entity Sdn Bhd; 2nd Defendant: M101 Holdings Sdn Bhd; 3rd Defendant: Dato' Yap Ting Hau; 4th Defendant: Datin Chan Heng Si
Court
High Court
Jurisdiction
Malaysia
Judgment Date
15 May 2024
Case Number
WA-22C-70-07/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Construction Contract Dispute (breach of Contract, Variations, Performance Bond, Directors' Allegations) / High Court Judgment on Liability and Quantum (trial)
Outcome
Judgment for Plaintiff CRCC Malaysia Berhad against 1st Defendant M101 Entity Sdn Bhd for RM38,277,862.45 plus interest; Plaintiff's claims against 2nd, 3rd and 4th Defendants dismissed.
Legal Topics
Performance Bond, Suspension and Termination of Contract, Variation Orders and Quantum, Contractual Interest, Director Duties and Piercing Corporate Veil, Misrepresentation and Estoppel, Adjudication/cipaa Issues
Source Language
Malay/English
Construction Law Contract Law Company Law Commercial Litigation Civil Procedure Performance Bond Suspension and Termination of Contract Variation Orders and Quantum +4 more

Case Brief

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Parties

CRCC Malaysia Berhad

Plaintiff

M101 Entity Sdn Bhd

1st Defendant

M101 Holdings Sdn Bhd

2nd Defendant

Dato' Yap Ting Hau

3rd Defendant

Datin Chan Heng Si

4th Defendant

Procedural Posture

Civil Construction Contract Dispute (breach of Contract, Variations, Performance Bond, Directors' Allegations) / High Court Judgment on Liability and Quantum (trial)

Legal Issues

  1. 1 Whether plaintiff entitled to payment for works done and variations
  2. 2 Whether defendant validly withheld payment for expired performance bond
  3. 3 Whether plaintiff validly suspended works and whether defendant lawfully terminated contract

Ratio Decidendi

On the evidence the plaintiff proved breach of contract by the 1st Defendant through failure to pay certified interim sums; the expiry of the performance bond did not justify withholding payment where defendant had not promptly raised the issue and sought to rely on it only after defaulting on payments; the purported Line of Credit arrangement was not contractually concluded and could not defeat the plaintiff's claim; the plaintiff's suspension was contractually justified and the defendant's termination was wrongful—consequently judgment was entered for the plaintiff against the 1st Defendant for RM38,277,862.45 with interest and costs, while claims against the 2nd, 3rd and 4th Defendants...

Court Disposition

Judgment for Plaintiff CRCC Malaysia Berhad against 1st Defendant M101 Entity Sdn Bhd for RM38,277,862.45 plus interest; Plaintiff's claims against 2nd, 3rd and 4th Defendants dismissed.

Orders

  • 1. Judgment entered for the Plaintiff against the 1st Defendant in the sum of RM38,277,862.45 (being RM37,694,650.97 for works done; RM2,780,560.20 for variation works; RM832,527.76 for customised material; less set-off of RM5,514,760.20 already paid).
  • 2. 1st Defendant to pay contractual interest at 5% per annum on the total judgment sum of RM38,277,862.45 from 24.7.2020 until full settlement.