MIMOS BERHAD BCM ELECTRONICS CORPORATION SDN BHD

MIMOS BERHAD BCM ELECTRONICS CORPORATION SDN BHD

The Court held the 13 March 2012 email and surrounding correspondence were forecasts and simulations to assess lead time and exposure, not instructions to manufacture 2,822 units; BCM's decision to procure materials was its own commercial risk absent express written authorisation under the NPIA; the High Court was plainly wrong in finding MIMOS liable for RM1,672,789, so the appeal was allowed and the High Court judgment set aside.

Citation
W-02(NCvC)(W)-920-05/2019 (Mahkamah Rayuan)
Parties
Appellant: MIMOS Berhad; Respondent: BCM Electronics Corporation Sdn. Bhd.
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
3 August 2021
Case Number
W-02(NCvC)(W)-920-05/2019 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (contract Dispute) / Court of Appeal Judgment (appeal Allowed)
Outcome
Appeal allowed; High Court judgment set aside; Respondent's claim dismissed against the Appellant
Legal Topics
Formation and Interpretation of Contract, Purchase Orders Vs Forecasts, Liability for Procurement Decisions, Appellate Review of Factual Findings
Source Language
Malay/English
Contract Law Commercial Law Civil Procedure Evidence Law Formation and Interpretation of Contract Purchase Orders Vs Forecasts Liability for Procurement Decisions Appellate Review of Factual Findings

Case Brief

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Parties

MIMOS Berhad

Appellant

BCM Electronics Corporation Sdn. Bhd.

Respondent

Procedural Posture

Civil Appeal (contract Dispute) / Court of Appeal Judgment (appeal Allowed)

Legal Issues

  1. 1 Whether the 13 March 2012 email and related correspondence amounted to a confirmed purchase order or merely a forecast
  2. 2 Whether BCM purchased raw materials and proceeded to manufacture as a result of instructions from MIMOS or from BCM's own business decision
  3. 3 Whether MIMOS was liable for RM1,672,789 claimed by BCM for remnant components and handling charges

Ratio Decidendi

The Court held the 13 March 2012 email and surrounding correspondence were forecasts and simulations to assess lead time and exposure, not instructions to manufacture 2,822 units; BCM's decision to procure materials was its own commercial risk absent express written authorisation under the NPIA; the High Court was plainly wrong in finding MIMOS liable for RM1,672,789, so the appeal was allowed and the High Court judgment set aside.

Court Disposition

Appeal allowed; High Court judgment set aside; Respondent's claim dismissed against the Appellant

Orders

  • High Court judgment allowing BCM's claim for RM1,672,789.00 set aside
  • Appeal allowed with costs in favour of the Appellant