1. ALLIANCE CONNEXT SDN BHD (Company No: 1152850-U) 2. NICHOLAS NG FUI MING (NRIC No. 811119-12-5249) WANGSA BUDIMAS SDN BHD (Company No. 896296-P)

1. ALLIANCE CONNEXT SDN BHD (Company No: 1152850-U) 2. NICHOLAS NG FUI MING (NRIC No. 811119-12-5249) WANGSA BUDIMAS SDN BHD (Company No. 896296-P)

The trial judge erred by excluding competent defence witnesses without legal basis; undisputed documentary evidence established the 70% rental reduction entitlement and produced a valid set-off (RM68,634.00) that extinguished claimed rental arrears, respondent failed to discharge burden to prove loss and valuation of equipment (Condition Report inadmissible/hearsay), and the 2nd appellant was not personally liable because no separate guarantee was executed and no arrears remained; accordingly the Court of Appeal set aside awards for rental arrears and equipment damage, entered judgment on utilities, and substituted judgment for the 1st appellant on its counterclaim (RM11,749.80 plus...

Citation
S-02(NCVC)(W)-2134-11/2019 (Mahkamah Rayuan)
Parties
1st Appellant / 1st Defendant: Alliance Connext Sdn Bhd; 2nd Appellant / 2nd Defendant: Nicholas Ng Fui Ming; Respondent / Plaintiff: Wangsa Budimas Sdn Bhd
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
28 October 2021
Case Number
S-02(NCVC)(W)-2134-11/2019 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (contract Lease) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed in part; cross-appeal dismissed; High Court orders varied as stated
Legal Topics
Lease Agreement, Re Entry and Termination, Personal Guarantee, Set Off, Competency of Witnesses, Damages for Loss of Equipment, Liquidated Damages, Termination of Tenancy
Source Language
Malay/English
Contract Company Law Evidence Landlord and Tenant Civil Procedure Lease Agreement Re Entry and Termination Personal Guarantee +5 more

Case Brief

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Parties

Alliance Connext Sdn Bhd

1st Appellant / 1st Defendant

Nicholas Ng Fui Ming

2nd Appellant / 2nd Defendant

Wangsa Budimas Sdn Bhd

Respondent / Plaintiff

Procedural Posture

Civil Appeal (contract Lease) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether witnesses called for a company must be current officers or authorised formally to testify
  2. 2 Whether rental arrears claimed were extinguished by set-off arising from agreed rental reduction
  3. 3 Whether respondent proved loss and damage to gym equipment and valuation

Ratio Decidendi

The trial judge erred by excluding competent defence witnesses without legal basis; undisputed documentary evidence established the 70% rental reduction entitlement and produced a valid set-off (RM68,634.00) that extinguished claimed rental arrears, respondent failed to discharge burden to prove loss and valuation of equipment (Condition Report inadmissible/hearsay), and the 2nd appellant was not personally liable because no separate guarantee was executed and no arrears remained; accordingly the Court of Appeal set aside awards for rental arrears and equipment damage, entered judgment on utilities, and substituted judgment for the 1st appellant on its counterclaim (RM11,749.80 plus...

Court Disposition

Appeal allowed in part; cross-appeal dismissed; High Court orders varied as stated

Orders

  • Set aside High Court judgment for rental arrears RM56,884.20 against 1st Appellant
  • Set aside High Court judgment for loss and damage to gym equipment RM588,378.91 against 1st Appellant