1. ) MUKESH KUMAR A/L M S KAPOOR 2. ) RITA KUMARI A/P BRAHAM SHARAN KALIA 3. ) KOAY TENG KEONG 4. ) TAN KOK NEE 5. ) OOI CHEE KHEONG 6. ) OOI CHENG HUAT 7. ) KHOO POH GIOK 1. ) TERANG MURNI SDN BHD 2. ) TAN & TAN DEVELOPMENTS BERHAD

1. ) MUKESH KUMAR A/L M S KAPOOR 2. ) RITA KUMARI A/P BRAHAM SHARAN KALIA 3. ) KOAY TENG KEONG 4. ) TAN KOK NEE 5. ) OOI CHEE KHEONG 6. ) OOI CHENG HUAT 7. ) KHOO POH GIOK 1. ) TERANG MURNI SDN BHD 2. ) TAN & TAN DEVELOPMENTS BERHAD

On the balance of probabilities the court found Tan & Tan acted as agent of Terang Murni; Tan & Tan’s sales representatives made false and/or negligent representations about the nature of the penthouse units that materially induced plaintiffs to enter S&P agreements; the delivered units were not bona fide penthouses but mirror-image combinations of two standard units (dual-sub units); plaintiffs are entitled to rescind the S&P agreements or, alternatively, have damages assessed under Order 37, and are awarded collective costs.

Citation
WA-22NCvC-225-04/2018 (Mahkamah Tinggi)
Parties
Plaintiff/respondent: Mukesh Kumar A/L M S Kapoor; Plaintiff/respondent: Rita Kumari A/P Braham Sharan Kalia; Plaintiff/respondent: Koay Teng Keong; Plaintiff/respondent: Tan Kok Nee; Plaintiff/respondent: Ooi Chee Kheong; Plaintiff/respondent: Ooi Cheng Huat; Plaintiff/respondent: Khoo Poh Giok; Defendant/appellant: Terang Murni Sdn Bhd; Defendant/appellant: Tan & Tan Development Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
26 October 2022
Case Number
WA-22NCvC-225-04/2018 (Mahkamah Tinggi)
Procedural Posture
Civil Litigation Misrepresentation/negligence in Property Sale / Trial Judgment (merits)
Outcome
Plaintiffs' claims allowed in part: findings of agency and actionable misrepresentation; orders for rescission alternatively damages to be assessed under Order 37 Rules of Court 2012; costs awarded.
Legal Topics
Misrepresentation, Rescission, Negligent Misstatement, Principal Agent Liability, Housing Development Regulations, Sale and Purchase Agreements
Source Language
Malay/English
Contract Tort Agency Property Law Administrative/regulatory Compliance Misrepresentation Rescission Negligent Misstatement +3 more

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Parties

Mukesh Kumar A/L M S Kapoor

Plaintiff/respondent

Rita Kumari A/P Braham Sharan Kalia

Plaintiff/respondent

Koay Teng Keong

Plaintiff/respondent

Tan Kok Nee

Plaintiff/respondent

Ooi Chee Kheong

Plaintiff/respondent

Ooi Cheng Huat

Plaintiff/respondent

Khoo Poh Giok

Plaintiff/respondent

Terang Murni Sdn Bhd

Defendant/appellant

Tan & Tan Development Berhad

Defendant/appellant

Procedural Posture

Civil Litigation Misrepresentation/negligence in Property Sale / Trial Judgment (merits)

Legal Issues

  1. 1 Existence of principal-agent relationship between Terang Murni and Tan & Tan
  2. 2 Whether statements by Tan & Tan's sales agents constituted representations
  3. 3 Whether those representations were negligent or actionable misrepresentations and induced plaintiffs to enter S&P agreements

Ratio Decidendi

On the balance of probabilities the court found Tan & Tan acted as agent of Terang Murni; Tan & Tan’s sales representatives made false and/or negligent representations about the nature of the penthouse units that materially induced plaintiffs to enter S&P agreements; the delivered units were not bona fide penthouses but mirror-image combinations of two standard units (dual-sub units); plaintiffs are entitled to rescind the S&P agreements or, alternatively, have damages assessed under Order 37, and are awarded collective costs.

Court Disposition

Plaintiffs' claims allowed in part: findings of agency and actionable misrepresentation; orders for rescission alternatively damages to be assessed under Order 37 Rules of Court 2012; costs awarded.

Orders

  • Finding that Tan & Tan Development Berhad was agent of Terang Murni Sdn Bhd for Sierramas Heights sales and marketing
  • Finding that Tan & Tan and its sales representatives made negligent and/or false representations inducing plaintiffs to enter Sale & Purchase Agreements