MODALKU VENTURES SDN BHD E-TECH IT SDN BHD

MODALKU VENTURES SDN BHD E-TECH IT SDN BHD

The Notice of Assignment unequivocally and validly assigned absolutely the invoices and receivables to the Plaintiff; the Defendant failed to raise a bona fide triable issue because the alleged verbal agreement was inadmissible and inconsistent with the written Notice which prohibited variation without Plaintiff's written consent, the Defendant had acknowledged receipt of goods as in good condition, equitable set-off was not established as not sufficiently connected, and concurrent proceedings against assignor and debtor do not amount to double recovery while debt remains unpaid; accordingly summary judgment principles applied and the Defendant's counterclaim amounted to abuse of process...

Citation
WA-22NCC-303-06/2022 (Mahkamah Tinggi)
Parties
PLAINTIFF: Modalku Ventures Sdn Bhd; DEFENDANT: E-Tech IT Sdn Bhd; THIRD PARTY: Able Enterprise (M) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
15 February 2023
Case Number
WA-22NCC-303-06/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Suit (commercial Division) / Summary Judgment (order 14 ROC 2012) and Strike Out (order 18 R 19 ROC 2012) Applications
Outcome
Summary judgment granted in favour of the Plaintiff on the assigned invoices; Defendant's counterclaim struck out as frivolous, vexatious and an abuse of process
Legal Topics
Assignment of Receivables, Factoring, Summary Judgment, Strike Out, Parol Evidence Rule, Equitable Set Off, Abuse of Process, Multiplicity of Actions/double Recovery
Source Language
Malay/English
Contract Law Commercial/banking Law Civil Procedure Evidence Law Sale of Goods Assignment of Receivables Factoring Summary Judgment +5 more

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Parties

Modalku Ventures Sdn Bhd

PLAINTIFF

E-Tech IT Sdn Bhd

DEFENDANT

Able Enterprise (M) Sdn Bhd

THIRD PARTY

Procedural Posture

Civil Suit (commercial Division) / Summary Judgment (order 14 ROC 2012) and Strike Out (order 18 R 19 ROC 2012) Applications

Legal Issues

  1. 1 Whether a verbal agreement between Defendant and assignor Able varied the written Notice of Assignment
  2. 2 Whether the Notice of Assignment contravened protections under the Sale of Goods Act 1957
  3. 3 Whether Defendant is entitled to an independent/equitable set-off against Able for returned goods and credit notes

Ratio Decidendi

The Notice of Assignment unequivocally and validly assigned absolutely the invoices and receivables to the Plaintiff; the Defendant failed to raise a bona fide triable issue because the alleged verbal agreement was inadmissible and inconsistent with the written Notice which prohibited variation without Plaintiff's written consent, the Defendant had acknowledged receipt of goods as in good condition, equitable set-off was not established as not sufficiently connected, and concurrent proceedings against assignor and debtor do not amount to double recovery while debt remains unpaid; accordingly summary judgment principles applied and the Defendant's counterclaim amounted to abuse of process...

Court Disposition

Summary judgment granted in favour of the Plaintiff on the assigned invoices; Defendant's counterclaim struck out as frivolous, vexatious and an abuse of process

Orders

  • Summary judgment entered for the Plaintiff in respect of the unpaid assigned invoices
  • Defendant ordered to pay the outstanding sum relating to the assigned invoices into the Designated Account (sum claimed RM1,235,735.71 as at 5.5.2022)