UEM GENISYS SDN BHD (Dalam Likuidasi) [No. Pendaftaran Perniagaan: 269771-U] ONN KIEN HOE (disaman dalam kapasiti sebagai seorang pelikuidasi) [No. Kad Pengenalan: 650216106811] MOK YUEN LOK (disaman dalam kapasiti sebagai seorang pelikuida

UEM GENISYS SDN BHD (Dalam Likuidasi) [No. Pendaftaran Perniagaan: 269771-U] ONN KIEN HOE (disaman dalam kapasiti sebagai seorang pelikuidasi) [No. Kad Pengenalan: 650216106811] MOK YUEN LOK (disaman dalam kapasiti sebagai seorang pelikuida

The appellant Court held GIE's claim was time-barred because the proof of debt was expressly based on the Architect's Certificate dated 6.11.2000 which gave rise to a cause of action on 20.11.2000 and expired under section 6 Limitation Act; however UEG's deduction of the procurement fee was not time-barred because the Limitation Act's term 'action' is limited to court proceedings and the deduction was an out-of-court contractual recovery; GIE had made judicial admissions accepting the procurement deduction; imposition of interest was commercially justified; accordingly the liquidators are not personally liable for costs.

Citation
W-02(NCC)(W)-2598-12/2018 (Mahkamah Rayuan)
Parties
Appellant (company in Liquidation): UEM GENISYS SDN BHD (in Liquidation); Appellant (being Sued in the Capacity of a Liquidator): ONN KIEN HOE; Appellant (being Sued in the Capacity of a Liquidator): MOK YUEN LOK; Respondent: GENISYS INTEGRATED ENGINEERS PTE LTD
Court
NCC
Jurisdiction
Malaysia
Judgment Date
16 August 2021
Case Number
W-02(NCC)(W)-2598-12/2018 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Judgment on Appeal (court of Appeal)
Outcome
appeal allowed; High Court judgment set aside
Legal Topics
Liquidation, Proof of Debt, Limitation Period, Procurement Fee, Set Off, Indemnity Costs, Ultra Vires, Res Judicata
Source Language
Malay/English
Company Law Contract Law Limitation Law Civil Procedure Costs Liquidation Proof of Debt Limitation Period +5 more

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Parties

UEM GENISYS SDN BHD (in Liquidation)

Appellant (company in Liquidation)

ONN KIEN HOE

Appellant (being Sued in the Capacity of a Liquidator)

MOK YUEN LOK

Appellant (being Sued in the Capacity of a Liquidator)

GENISYS INTEGRATED ENGINEERS PTE LTD

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal (court of Appeal)

Legal Issues

  1. 1 whether GIE's claim is time barred
  2. 2 whether UEG's deduction of the Procurement Fee is time barred
  3. 3 whether the Liquidators are liable personally for costs on an indemnity basis

Ratio Decidendi

The appellant Court held GIE's claim was time-barred because the proof of debt was expressly based on the Architect's Certificate dated 6.11.2000 which gave rise to a cause of action on 20.11.2000 and expired under section 6 Limitation Act; however UEG's deduction of the procurement fee was not time-barred because the Limitation Act's term 'action' is limited to court proceedings and the deduction was an out-of-court contractual recovery; GIE had made judicial admissions accepting the procurement deduction; imposition of interest was commercially justified; accordingly the liquidators are not personally liable for costs.

Court Disposition

appeal allowed; High Court judgment set aside

Orders

  • High Court judgment dated 21.11.2018 set aside in its entirety
  • Costs awarded to appellants in the sum of RM40000.00 here and below, subject to allocatur