FABULOUS RANGE SDN BHD HELENA A/P GNANAMUTHU

FABULOUS RANGE SDN BHD HELENA A/P GNANAMUTHU

The Court of Appeal allowed the appeal in part because the Respondent affirmed the agreements by taking vacant possession and continuing payments, there was no total failure of consideration and the defects were rectifiable (not fundamental); therefore rescission was not available and it was erroneous to award rescission together with damages. The High Court's rescission was set aside except the award of liquidated ascertained damages of RM62,232.90, and the matter was remitted to the High Court to assess damages only.

Citation
B-02(NCVC)(W)-828-04/2017 (Mahkamah Rayuan)
Parties
Appellant/defendant: Fabulous Range Sdn Bhd; Respondent/plaintiff: Helena A/P K. Gnanamuthu
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
30 November 2020
Case Number
B-02(NCVC)(W)-828-04/2017 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) / Judgment on Appeal Remitting Matter to High Court for Assessment of Damages
Outcome
Appeal allowed in part; High Court order of rescission set aside; award of LAD RM62,232.90 with interest maintained; case remitted to High Court for assessment of damages; costs ordered.
Legal Topics
Rescission, Total Failure of Consideration, Affirmation of Contract, Innocent Misrepresentation, Liquidated Damages, Breach of Condition Vs Warranty, As Is Clauses, Lien on Property, Assessment of Damages
Source Language
Malay/English
Contract Law Property Law Restitution Tort (misrepresentation) Construction Law Civil Procedure Rescission Total Failure of Consideration +7 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 22 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Fabulous Range Sdn Bhd

Appellant/defendant

Helena A/P K. Gnanamuthu

Respondent/plaintiff

Procedural Posture

Civil Appeal (court of Appeal) / Judgment on Appeal Remitting Matter to High Court for Assessment of Damages

Legal Issues

  1. 1 Whether the plaintiff was entitled to rescind the sale and purchase agreement and supplemental agreement
  2. 2 Whether there was total failure of consideration or fundamental breach entitling rescission
  3. 3 Whether there was actionable misrepresentation (fraudulent, negligent or innocent) and appropriate remedy

Ratio Decidendi

The Court of Appeal allowed the appeal in part because the Respondent affirmed the agreements by taking vacant possession and continuing payments, there was no total failure of consideration and the defects were rectifiable (not fundamental); therefore rescission was not available and it was erroneous to award rescission together with damages. The High Court's rescission was set aside except the award of liquidated ascertained damages of RM62,232.90, and the matter was remitted to the High Court to assess damages only.

Court Disposition

Appeal allowed in part; High Court order of rescission set aside; award of LAD RM62,232.90 with interest maintained; case remitted to High Court for assessment of damages; costs ordered.

Orders

  • Set aside High Court order of rescission of the Sale & Purchase Agreement and Supplemental Agreement
  • Maintain High Court award of liquidated ascertained damages in the sum of 62232.90 MYR with interest as previously ordered