PERAK INTEGRATED NETWORK SERVICES SDN BHD 1. ) PINS OSC & Maintenance Services Sdn. Bhd. 2. ) URBAN DOMAIN SDN BHD

PERAK INTEGRATED NETWORK SERVICES SDN BHD 1. ) PINS OSC & Maintenance Services Sdn. Bhd. 2. ) URBAN DOMAIN SDN BHD

The Federal Court held that the subsequent winding up of OSC after the liability judgment is not a relevant event that limits the period for assessment of quantum (Appeals 5 and 6 dismissed), but the liability judgment must be interpreted in its factual matrix and consistent with contractual and compensatory principles such that costs and expenses incurred in generating revenue are deductible in the account and inquiry; accordingly Appeal 26 is allowed and the matter is remitted for reassessment of quantum allowing those deductions.

Citation
03-5-08/2024(W) (Mahkamah Persekutuan)
Parties
Appellant: Perak Integrated Network Services Sdn Bhd; 1st Respondent (nominal): PINS OSC & Maintenance Services Sdn Bhd; 2nd Respondent (substantive/derivative Plaintiff): Urban Domain Sdn Bhd
Court
W
Jurisdiction
Malaysia
Judgment Date
29 January 2026
Case Number
03-5-08/2024(W) (Mahkamah Persekutuan)
Procedural Posture
Civil Appeal (federal Court) / Final Judgment on Appeals Remitting Matter to High Court for Further Account and Inquiry
Outcome
Appeals 5 and 6 dismissed; Appeal 26 allowed; part of Court of Appeal order disallowing deductions set aside; matter remitted to High Court for further account and inquiry allowing deductions; further expert directions and costs ordered.
Legal Topics
Winding Up, Quantum of Damages, Interpretation of Court Judgment, Res Judicata/issue Estoppel, Account and Inquiry, Deduction of Costs and Expenses, Court Appointed Expert
Source Language
Malay/English
Contract Law Company Law Civil Procedure Equity (derivative Action) Remedies and Damages Winding Up Quantum of Damages Interpretation of Court Judgment +4 more

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Parties

Perak Integrated Network Services Sdn Bhd

Appellant

PINS OSC & Maintenance Services Sdn Bhd

1st Respondent (nominal)

Urban Domain Sdn Bhd

2nd Respondent (substantive/derivative Plaintiff)

Procedural Posture

Civil Appeal (federal Court) / Final Judgment on Appeals Remitting Matter to High Court for Further Account and Inquiry

Legal Issues

  1. 1 Whether a subsequent winding up of the judgment creditor (after liability judgment but before quantum assessment) limits the period for assessment of quantum (Subsequent Winding Up Issue)
  2. 2 Whether the liability judgment must be interpreted to permit deduction of costs and expenses incurred in generating gross revenue when assessing quantum (Interpretation of Liability Judgment Issue)
  3. 3 Whether issue estoppel/res judicata bars raising the winding up at quantum stage

Ratio Decidendi

The Federal Court held that the subsequent winding up of OSC after the liability judgment is not a relevant event that limits the period for assessment of quantum (Appeals 5 and 6 dismissed), but the liability judgment must be interpreted in its factual matrix and consistent with contractual and compensatory principles such that costs and expenses incurred in generating revenue are deductible in the account and inquiry; accordingly Appeal 26 is allowed and the matter is remitted for reassessment of quantum allowing those deductions.

Court Disposition

Appeals 5 and 6 dismissed; Appeal 26 allowed; part of Court of Appeal order disallowing deductions set aside; matter remitted to High Court for further account and inquiry allowing deductions; further expert directions and costs ordered.

Orders

  • Appeals 5 and 6 dismissed with costs of RM40,000 each to be paid to UDSB (subject to allocator)
  • Appeal 26 allowed with costs of RM100,000 to be paid by UDSB to PINS (subject to allocator)