1. ) CHAN LAI YOKE (IC No: 731020-08-5734) 2. ) KONG WAI CHEN (IC No: 711026-14-5277) E.S.S. ENGINEERING SDN BHD (Company No: 120725-X)

1. ) CHAN LAI YOKE (IC No: 731020-08-5734) 2. ) KONG WAI CHEN (IC No: 711026-14-5277) E.S.S. ENGINEERING SDN BHD (Company No: 120725-X)

The court set aside summary judgment because the defendants produced contemporaneous documents and admissions (2015 Agreement, 11 June 2020 letter by director CSJ, audited financial statements signed by directors, and CSP's admission in separate litigation) that raised at least one bona fide triable issue—namely whether the Claimed Sum had been paid to the plaintiff—and therefore summary judgment under Order 14 was inappropriate; appeal allowed and defendants given leave to defend.

Citation
AA-12ANCC-11-12/2019 & AA-12ANCC-12-12/2019 (Mahkamah Tinggi)
Parties
Appellant/defendant: Chan Lai Yoke; Appellant/defendant: Kong Wai Chen; Respondent/plaintiff: E.S.S. Engineering Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
17 September 2021
Case Number
AA-12ANCC-11-12/2019 & AA-12ANCC-12-12/2019 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal (summary Judgment) / High Court Re Hearing on Appeal
Outcome
Appeal No.11 allowed; summary judgment entered by Sessions Court on 11 December 2019 set aside; Appeal No.12 struck out (withdrawn) with no order as to costs; defendants given unconditional leave to defend.
Legal Topics
Summary Judgment, Novation (substitution of Debtor), Payment by Third Party/agency, Admissions in Pleadings, Parol Evidence/fraud Exception, Estoppel, Unjust Enrichment, Costs
Source Language
Malay/English
Contract Law Civil Procedure Company Law Evidence Law Summary Judgment Novation (substitution of Debtor) Payment by Third Party/agency Admissions in Pleadings +4 more

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Parties

Chan Lai Yoke

Appellant/defendant

Kong Wai Chen

Appellant/defendant

E.S.S. Engineering Sdn Bhd

Respondent/plaintiff

Procedural Posture

Civil Appeal (summary Judgment) / High Court Re Hearing on Appeal

Legal Issues

  1. 1 Whether the 2015 Agreement effected a novation such that the plaintiff was no longer entitled to claim under the 2013 Agreement (s63 Contracts Act)
  2. 2 Whether the Claimed Sum of RM825,000 was in fact paid to the plaintiff by a third party (CSP) and therefore extinguished the defendants' liability
  3. 3 Whether admissions in other proceedings and contemporaneous company records raise a triable issue defeating summary judgment

Ratio Decidendi

The court set aside summary judgment because the defendants produced contemporaneous documents and admissions (2015 Agreement, 11 June 2020 letter by director CSJ, audited financial statements signed by directors, and CSP's admission in separate litigation) that raised at least one bona fide triable issue—namely whether the Claimed Sum had been paid to the plaintiff—and therefore summary judgment under Order 14 was inappropriate; appeal allowed and defendants given leave to defend.

Court Disposition

Appeal No.11 allowed; summary judgment entered by Sessions Court on 11 December 2019 set aside; Appeal No.12 struck out (withdrawn) with no order as to costs; defendants given unconditional leave to defend.

Orders

  • Appeal No.11 allowed with costs RM3,000 to be paid by the plaintiff (subject to allocatur)
  • Order of the Sessions Court dated 11 December 2019 (summary judgment against defendants) is set aside