Perbadanan Kemajuan Negeri Selangor (PKNS) NATIONWIDE TIARA (M) SDN. BHD.

Perbadanan Kemajuan Negeri Selangor (PKNS) NATIONWIDE TIARA (M) SDN. BHD.

The High Court allowed the appeal, holding that the magistrate erred in law and fact by failing to apply Act 829 and the contract's force majeure clause; the statutory temporary measures and force majeure excused PKNS's inability to perform during the relevant COVID-19 period and therefore Nationwide Tiara was not entitled to liquidated damages on the proved facts.

Citation
BA-11BNCvC-12-04/2023 (Mahkamah Tinggi)
Parties
Plaintiff/respondent: Nationwide Tiara (M) Sdn Bhd; Defendant/appellant: Perbadanan Kemajuan Negeri Selangor (PKNS)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
24 August 2023
Case Number
BA-11BNCvC-12-04/2023 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / High Court (appellate) Judgment
Outcome
Appeal allowed; decision of the Magistrate set aside
Legal Topics
Force Majeure, Liquidated Damages, Inability to Perform Contractual Obligations, Appellate Intervention, COVID 19 Emergency Legislation (act 829)
Source Language
Malay/English
Contract Law Construction Law Property Law Statutory Interpretation Civil Procedure Force Majeure Liquidated Damages Inability to Perform Contractual Obligations +2 more

Case Brief

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Parties

Nationwide Tiara (M) Sdn Bhd

Plaintiff/respondent

Perbadanan Kemajuan Negeri Selangor (PKNS)

Defendant/appellant

Procedural Posture

Civil Appeal / High Court (appellate) Judgment

Legal Issues

  1. 1 Whether plaintiff complied with contractual notice provisions (Clause 11(h))
  2. 2 Whether defendant delayed completion and delivery of vacant possession
  3. 3 Whether force majeure clause and COVID-19 temporary measures (Act 829) bar plaintiff's liquidated damages claim

Ratio Decidendi

The High Court allowed the appeal, holding that the magistrate erred in law and fact by failing to apply Act 829 and the contract's force majeure clause; the statutory temporary measures and force majeure excused PKNS's inability to perform during the relevant COVID-19 period and therefore Nationwide Tiara was not entitled to liquidated damages on the proved facts.

Court Disposition

Appeal allowed; decision of the Magistrate set aside

Orders

  • Appeal allowed
  • Magistrate's judgment ordering PKNS to pay RM24,712.20 in late payment charges set aside