LEE CHOON HEI (NRIC No.: 490928-10-5331) CHEAH BOON HOE (NRIC No.: 571211-08-6107) (formerly the Principal Owner of the firm Messrs. Paul Cheah & Assocaites and now practising under the name of Messrs Paul Cheah Associates)

LEE CHOON HEI (NRIC No.: 490928-10-5331) CHEAH BOON HOE (NRIC No.: 571211-08-6107) (formerly the Principal Owner of the firm Messrs. Paul Cheah & Assocaites and now practising under the name of Messrs Paul Cheah Associates)

Defendant remained a partner because the Partnership Agreement continued in effect, he continued to receive profit shares and exercise management rights, and no variation or transfer of his partnership interests was proved; the earlier third‑party proceeding was terminated procedurally and did not dispose of the...

Source-derived case information.

Citation
WA-22NCC-258-05/2019 (No. 2) (Mahkamah Tinggi)
Parties
Plaintiff: Lee Choon Hei; Defendant: Cheah Boon Hoe
Court
No. 2
Jurisdiction
Malaysia
Judgment Date
27 December 2019
Case Number
WA-22NCC-258-05/2019 (No. 2) (Mahkamah Tinggi)
Procedural Posture
Commercial Division Civil Suit / Judgment (grounds of Judgment)
Outcome
Claim allowed. Defendant held liable to indemnify Plaintiff under the Partnership Agreement; costs awarded to Plaintiff.
Legal Topics
Indemnity Under Partnership Agreement, Partner Liability, Res Judicata and Third‑party Proceedings, Bankruptcy and Plaintiff Competence, Enforcement of Foreign Judgment
Partnership Law Contract Law Insolvency Law Civil Procedure Indemnity Under Partnership Agreement Partner Liability Res Judicata and Third‑party Proceedings Bankruptcy and Plaintiff Competence +1 more

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Summary, issues, holding and outcome

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Parties

Lee Choon Hei

Plaintiff

Cheah Boon Hoe

Defendant

Procedural Posture

Commercial Division Civil Suit / Judgment (grounds of Judgment)

Legal Issues

  1. 1 Whether the Defendant remained a partner of the firm during 14.7.2006–30.6.2008
  2. 2 Whether the Plaintiff's indemnity claim is barred by res judicata due to prior third‑party proceedings
  3. 3 Whether the indemnity claim is premature absent actual payment of the Judgment Sum

Ratio Decidendi

Defendant remained a partner because the Partnership Agreement continued in effect, he continued to receive profit shares and exercise management rights, and no variation or transfer of his partnership interests was proved; the earlier third‑party proceeding was terminated procedurally and did not dispose of the merits so res judicata did not apply; indemnity claim was not premature under authority that cause of action for indemnity runs from date defendant is held liable; Plaintiff's bankruptcy was stayed so the action could proceed.

Court Disposition

Claim allowed. Defendant held liable to indemnify Plaintiff under the Partnership Agreement; costs awarded to Plaintiff.

Orders

  • Claim allowed and Defendant ordered to indemnify Plaintiff in respect of the Judgment Sum (RM561413.02) with interest and costs as pleaded
  • Costs of this action fixed at RM25000.00