GIGA ENGINEERING & CONSTRUCTION SDN BHD (COMPANY NO.: 206741-A) HERCULES STRUCTURAL SYSTEMS SDN BHD (COMPANY NO.: 1003239-U)

GIGA ENGINEERING & CONSTRUCTION SDN BHD (COMPANY NO.: 206741-A) HERCULES STRUCTURAL SYSTEMS SDN BHD (COMPANY NO.: 1003239-U)

The Sessions Court erred in applying the 1.5% per month interest contained only in progress claims because those terms were not incorporated into the written letter of award; parol evidence cannot be used to vary the written contract; equitable estoppel did not operate to import the invoice term; accordingly interest is awarded at the statutory/default rate of 5% per annum from 1.1.2015 to 8.3.2021 on the specified sums, while the claim for RM2,289.18 for nuts and bolts is upheld as supported by contemporaneous documents.

Citation
WA-12ANCvC-140-06/2020 (Mahkamah Tinggi)
Parties
Appellant: GIGA ENGINEERING & CONSTRUCTION SDN. BHD.; Respondent: HERCULES STRUCTURAL SYSTEMS SDN. BHD.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 April 2021
Case Number
WA-12ANCvC-140-06/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal From Sessions Court (summary Judgment) / Appeal Hearing and Judgment on Rehearing Under Order 55 Rule 2
Outcome
Appeal allowed in part; Sessions Court judgment varied on interest only and otherwise affirmed
Legal Topics
Summary Judgment, Parol Evidence Rule, Equitable Estoppel, Pre Judgment Interest, Post Judgment Interest
Source Language
Malay/English
Contract Civil Procedure Evidence Remedies (interest) Summary Judgment Parol Evidence Rule Equitable Estoppel Pre Judgment Interest +1 more

Case Brief

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Parties

GIGA ENGINEERING & CONSTRUCTION SDN. BHD.

Appellant

HERCULES STRUCTURAL SYSTEMS SDN. BHD.

Respondent

Procedural Posture

Civil Appeal From Sessions Court (summary Judgment) / Appeal Hearing and Judgment on Rehearing Under Order 55 Rule 2

Legal Issues

  1. 1 Whether Respondent entitled to charge interest at 1.5% per month as stated in progress claims
  2. 2 Whether terms in progress claims were incorporated into the written contract (letter of award)
  3. 3 Whether equitable estoppel prevents Appellant from disputing interest

Ratio Decidendi

The Sessions Court erred in applying the 1.5% per month interest contained only in progress claims because those terms were not incorporated into the written letter of award; parol evidence cannot be used to vary the written contract; equitable estoppel did not operate to import the invoice term; accordingly interest is awarded at the statutory/default rate of 5% per annum from 1.1.2015 to 8.3.2021 on the specified sums, while the claim for RM2,289.18 for nuts and bolts is upheld as supported by contemporaneous documents.

Court Disposition

Appeal allowed in part; Sessions Court judgment varied on interest only and otherwise affirmed

Orders

  • Appellant directed to pay interest at 5% per annum on RM2,289.18 from 1.1.2015 to 8.3.2021
  • Appellant directed to pay interest at 5% per annum on RM202,480.34 from 1.1.2015 to 8.3.2021