PERAK INTEGRATED NETWORK SERVICES SDN BHD 1. ) URBAN DOMAIN SDN. BHD. 2. ) PINS OSC & MAINTENANCE SERVICES SDN BHD

PERAK INTEGRATED NETWORK SERVICES SDN BHD 1. ) URBAN DOMAIN SDN. BHD. 2. ) PINS OSC & MAINTENANCE SERVICES SDN BHD

The Federal Court held that (1) the subsequent winding up of OSC on 27.10.2016 was not a relevant event to truncate the period for assessment because the winding up was contributed to by PINS' breach and would likely not have occurred but for that breach; res judicata/estoppel did not bar PINS from raising the point at the quantum stage given the bifurcated trial and the fact issue was one of quantum/interpretation; and (2) the Liability Judgment must be interpreted in context with the contractual matrix and the compensatory principle, therefore costs and expenses reasonably incurred in generating the rental proceeds are deductible in computing loss of profit. Appeals 5 and 6 were...

Citation
02(i)-26-08/2024(W) (Mahkamah Persekutuan)
Parties
Appellant: Perak Integrated Network Services Sdn Bhd; 1st Respondent: PINS OSC & Maintenance Services Sdn Bhd; 2nd Respondent: Urban Domain Sdn Bhd
Court
i
Jurisdiction
Malaysia
Judgment Date
29 January 2026
Case Number
02(i)-26-08/2024(W) (Mahkamah Persekutuan)
Procedural Posture
Civil Appeal (federal Court Appellate Jurisdiction) / Final Judgment (federal Court)
Outcome
Appeals 5 and 6 dismissed; Appeal 26 allowed; part of Court of Appeal order set aside; matter remitted to High Court for reassessment of quantum with directions
Legal Topics
Winding Up and Effect on Assessment of Damages, Derivative Action, Interpretation of Court Orders and Judgments, Account and Inquiry (o 43 R 2 ROC 2012), Loss of Profits Calculation and Allowable Deductions, Res Judicata / Issue Estoppel, Expert Evidence and Discounted Cash Flow
Source Language
Malay/English
Contract Law Company Law Civil Procedure Equity Remedies and Damages Winding Up and Effect on Assessment of Damages Derivative Action Interpretation of Court Orders and Judgments +4 more

Case Brief

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Parties

Perak Integrated Network Services Sdn Bhd

Appellant

PINS OSC & Maintenance Services Sdn Bhd

1st Respondent

Urban Domain Sdn Bhd

2nd Respondent

Procedural Posture

Civil Appeal (federal Court Appellate Jurisdiction) / Final Judgment (federal Court)

Legal Issues

  1. 1 Whether a subsequent winding up of the judgment creditor company limits the quantum to the winding up date (Subsequent Winding Up Issue)
  2. 2 Whether the Liability Judgment should be interpreted to allow deduction of costs and expenses in assessing quantum (Interpretation of Liability Judgment Issue)
  3. 3 Whether res judicata/issue estoppel prevents raising the winding up at quantum stage

Ratio Decidendi

The Federal Court held that (1) the subsequent winding up of OSC on 27.10.2016 was not a relevant event to truncate the period for assessment because the winding up was contributed to by PINS' breach and would likely not have occurred but for that breach; res judicata/estoppel did not bar PINS from raising the point at the quantum stage given the bifurcated trial and the fact issue was one of quantum/interpretation; and (2) the Liability Judgment must be interpreted in context with the contractual matrix and the compensatory principle, therefore costs and expenses reasonably incurred in generating the rental proceeds are deductible in computing loss of profit. Appeals 5 and 6 were...

Court Disposition

Appeals 5 and 6 dismissed; Appeal 26 allowed; part of Court of Appeal order set aside; matter remitted to High Court for reassessment of quantum with directions

Orders

  • Appeals 5 and 6 dismissed with costs of MYR 40,000 each subject to allocator to be paid to UDSB
  • Appeal 26 allowed with costs of MYR 100,000 to be paid by UDSB to PINS subject to allocator