HSL GROUND ENGINEERING SDN BHD 1. ) QINGJIAN HOLDING GROUP (MALAYSIA) SDN BHD 2. ) CIVIL TECH RESOURCES SDN BHD 3. ) TRITERRA METROPOLIS SDN BHD

HSL GROUND ENGINEERING SDN BHD 1. ) QINGJIAN HOLDING GROUP (MALAYSIA) SDN BHD 2. ) CIVIL TECH RESOURCES SDN BHD 3. ) TRITERRA METROPOLIS SDN BHD

The court held the consent orders were entered subject to the pre‑existing garnishee proceedings and contractual conditions and therefore could not take effect prior to disposal of those garnishee proceedings; there was no effective assignment from the Second Defendant to the First Defendant (the Notice of Assignment evidenced assignment by the First Defendant to its bank and did not show transfer of main contract sums), the employer's written consent and statutory notice requirements were not satisfied, and the First Defendant acted not bona fide in obtaining the consent orders; accordingly the application to set aside the consent orders was allowed.

Citation
WA-24NCvC-871-04/2021 (Mahkamah Tinggi)
Parties
Plaintiff: HSL GROUND ENGINEERING SDN BHD; First Defendant: QINGJIAN HOLDING GROUP (MALAYSIA) SDN BHD; Second Defendant: CIVIL TECH RESOURCES SDN BHD; Third Defendant: TRITERRA METROPOLIS SDN BHD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
18 August 2022
Case Number
WA-24NCvC-871-04/2021 (Mahkamah Tinggi)
Procedural Posture
Garnishee Proceedings and Originating Summons / Application to Set Aside Consent Orders (judgment)
Outcome
Application allowed: consent orders set aside; declaration that no valid assignment existed between Second Defendant and First Defendant and the disputed sum remains subject to the garnishee proceedings; costs awarded to Plaintiff.
Legal Topics
Assignment of Contractual Payments, Consent Order, Setting Aside Judgment by Consent, Statutory Assignment, Natural Justice, Jurisdiction, Costs
Source Language
Malay/English
Civil Contract Equity Procedure Garnishee Assignment of Contractual Payments Consent Order Setting Aside Judgment by Consent +4 more

Case Brief

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Parties

HSL GROUND ENGINEERING SDN BHD

Plaintiff

QINGJIAN HOLDING GROUP (MALAYSIA) SDN BHD

First Defendant

CIVIL TECH RESOURCES SDN BHD

Second Defendant

TRITERRA METROPOLIS SDN BHD

Third Defendant

Procedural Posture

Garnishee Proceedings and Originating Summons / Application to Set Aside Consent Orders (judgment)

Legal Issues

  1. 1 Whether the court had jurisdiction to set aside the consent orders entered in SP 2364
  2. 2 Whether a valid assignment of the main contract payments existed between the Second Defendant (main contractor) and the First Defendant (sub‑contractor), and compliance with contractual and statutory requirements for assignment
  3. 3 Whether the consent orders were entered bona fide and whether they could take effect prior to disposal of earlier garnishee proceedings

Ratio Decidendi

The court held the consent orders were entered subject to the pre‑existing garnishee proceedings and contractual conditions and therefore could not take effect prior to disposal of those garnishee proceedings; there was no effective assignment from the Second Defendant to the First Defendant (the Notice of Assignment evidenced assignment by the First Defendant to its bank and did not show transfer of main contract sums), the employer's written consent and statutory notice requirements were not satisfied, and the First Defendant acted not bona fide in obtaining the consent orders; accordingly the application to set aside the consent orders was allowed.

Court Disposition

Application allowed: consent orders set aside; declaration that no valid assignment existed between Second Defendant and First Defendant and the disputed sum remains subject to the garnishee proceedings; costs awarded to Plaintiff.

Orders

  • Perintah bertarikh 16 April 2021 dan Perintah Persetujuan bertarikh 30 Mac 2021 diketepikan
  • Declaration that there was no valid assignment from the Second Defendant to the First Defendant and that the sum RM4,645,497.80 is subject to the prior garnishee proceedings