Solid Invention Sdn Bhd 1. ) XXXX 2. ) LAI KIM LING 3. ) LAI KIM LOONG 4. ) LIM KUAN SEK 5. ) LAI MAH LEE 6. ) Lai Siew Kien [Identity Card No.: ]

Solid Invention Sdn Bhd 1. ) XXXX 2. ) LAI KIM LING 3. ) LAI KIM LOONG 4. ) LIM KUAN SEK 5. ) LAI MAH LEE 6. ) Lai Siew Kien [Identity Card No.: ]

Only the purchase price paid under the now-void SPA constitutes a benefit requiring restitution under s66 Contracts Act 1950; ex-gratia payments under an unaffected consent judgment, ancillary expenses and stamp duty claim against a non-party are not recoverable by restitution; therefore defendants must refund their respective portions of the purchase price to Plaintiff's solicitors within six months and the transfer(s) are to be reversed upon refund.

Citation
BA-22NCVC-437-08/2016 (Mahkamah Tinggi)
Parties
Plaintiff: SOLID INVENTION SDN BHD; Defendant 1: LAI KIM FONG; Defendant 2: LAI KIM LING; Defendant 3: LAI KIM LOONG; Defendant 4 (executor): LAI KUAN SEK; Defendant 5 (beneficiary): LAI MAH LEE; Defendant 6 (beneficiary): LAI SIEW KIEN
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 March 2023
Case Number
BA-22NCVC-437-08/2016 (Mahkamah Tinggi)
Procedural Posture
Civil Claim to Enforce Sale and Purchase Agreement and Consequential Restitution / Application for Consequential Orders and Restitution Following Appellate Reversal (post Federal Court Judgment)
Outcome
Application partly allowed in part and dismissed in part
Legal Topics
Specific Performance, Condition Precedent, Void Contract, Restitution, Consequential Orders, Stamp Duty Refund
Source Language
Malay/English
Contract Law Restitution/unjust Enrichment Property Law Civil Procedure Specific Performance Condition Precedent Void Contract Restitution +2 more

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Parties

SOLID INVENTION SDN BHD

Plaintiff

LAI KIM FONG

Defendant 1

LAI KIM LING

Defendant 2

LAI KIM LOONG

Defendant 3

LAI KUAN SEK

Defendant 4 (executor)

LAI MAH LEE

Defendant 5 (beneficiary)

LAI SIEW KIEN

Defendant 6 (beneficiary)

Procedural Posture

Civil Claim to Enforce Sale and Purchase Agreement and Consequential Restitution / Application for Consequential Orders and Restitution Following Appellate Reversal (post Federal Court Judgment)

Legal Issues

  1. 1 Whether Plaintiff is entitled to restitution of monies paid pursuant to a sale and purchase agreement later held void
  2. 2 Whether ex-gratia payments under a prior consent judgment are refundable
  3. 3 Whether ancillary expenses and damages incurred by Plaintiff are recoverable by way of restitution

Ratio Decidendi

Only the purchase price paid under the now-void SPA constitutes a benefit requiring restitution under s66 Contracts Act 1950; ex-gratia payments under an unaffected consent judgment, ancillary expenses and stamp duty claim against a non-party are not recoverable by restitution; therefore defendants must refund their respective portions of the purchase price to Plaintiff's solicitors within six months and the transfer(s) are to be reversed upon refund.

Court Disposition

Application partly allowed in part and dismissed in part

Orders

  • D1-D3 to pay RM3,257,869.71 to Messrs. Kamarudin, Wee & Co (Plaintiff's conveyancing solicitors) within 6 calendar months to be held as stakeholders
  • Upon receipt of RM3,257,869.71 the initial transfer of the half share from D1-D3 to Plaintiff is declared null and void/expunged and Plaintiff to deliver original title to D1-D3's solicitors for re-registration