1. ) LOOI CHEE HONG 2. ) CHEA AI RENE 1. ) LCC BUILDER SDN BHJD 2. ) LEE CHEE CHUAN 3. ) FONG CHONG LAM

1. ) LOOI CHEE HONG 2. ) CHEA AI RENE 1. ) LCC BUILDER SDN BHJD 2. ) LEE CHEE CHUAN 3. ) FONG CHONG LAM

The High Court affirmed the Sessions Court because the Respondents proved on the balance of probabilities an independent oral collateral agreement under Order 16 by adducing corroborative evidence (independent site witness SD2, contemporaneous project documents signed by the First Appellant, and three bank transfers totalling RM190,562.50 referencing 'toyoma') establishing Appellants' de facto control and receipt of funds; the reimbursement defence lacked contemporaneous corroboration and was inconsistent; therefore the Sessions Court was not plainly wrong and the Appellants are jointly and severally liable and ordered to pay costs.

Citation
WA-12BNCC-3-02/2025 (Mahkamah Tinggi)
Parties
First Appellant (formerly First Third Party): Looi Chee Hong; Second Appellant (formerly Second Third Party): Chea Ai Rene; First Respondent (defendant / Third Party Claimant): LCC Builder Sdn Bhd; Second Respondent (defendant / Third Party Claimant): Lee Chee Chuan; Third Respondent (defendant / Third Party Claimant): Fong Chong Lam; Original Plaintiff in Primary Action: Syn Tai Hung Trading Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
3 April 2026
Case Number
WA-12BNCC-3-02/2025 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal (commercial Division, High Court of Malaya at Kuala Lumpur) / Appeal Heard and Decided (grounds of Judgment)
Outcome
Appeal dismissed; decision of the Sessions Court dated 28 January 2025 affirmed.
Legal Topics
Third‑party Proceedings (order 16), Privity of Contract, Oral Collateral Agreement, Burden and Standard of Proof, Appellate Review (plainly Wrong), Credibility Findings, Characterisation of Payments (reimbursement Vs Profit)
Source Language
Malay/English
Contract Law Civil Procedure Evidence Company Law Partnership Law Third‑party Proceedings (order 16) Privity of Contract Oral Collateral Agreement +4 more

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Parties

Looi Chee Hong

First Appellant (formerly First Third Party)

Chea Ai Rene

Second Appellant (formerly Second Third Party)

LCC Builder Sdn Bhd

First Respondent (defendant / Third Party Claimant)

Lee Chee Chuan

Second Respondent (defendant / Third Party Claimant)

Fong Chong Lam

Third Respondent (defendant / Third Party Claimant)

Syn Tai Hung Trading Sdn Bhd

Original Plaintiff in Primary Action

Procedural Posture

Civil Appeal (commercial Division, High Court of Malaya at Kuala Lumpur) / Appeal Heard and Decided (grounds of Judgment)

Legal Issues

  1. 1 applicable appellate standard for factual findings
  2. 2 whether privity bars third‑party liability under Order 16
  3. 3 existence and proof of an oral collateral agreement between Appellants and Respondents

Ratio Decidendi

The High Court affirmed the Sessions Court because the Respondents proved on the balance of probabilities an independent oral collateral agreement under Order 16 by adducing corroborative evidence (independent site witness SD2, contemporaneous project documents signed by the First Appellant, and three bank transfers totalling RM190,562.50 referencing 'toyoma') establishing Appellants' de facto control and receipt of funds; the reimbursement defence lacked contemporaneous corroboration and was inconsistent; therefore the Sessions Court was not plainly wrong and the Appellants are jointly and severally liable and ordered to pay costs.

Court Disposition

Appeal dismissed; decision of the Sessions Court dated 28 January 2025 affirmed.

Orders

  • Appeal dismissed in its entirety.
  • Decision of the Sessions Court dated 28 January 2025 is affirmed.