IFFCO (MALAYSIA) SDN. BHD. RAMAMOORTHY A/L R. SUBRAMANIAM

IFFCO (MALAYSIA) SDN. BHD. RAMAMOORTHY A/L R. SUBRAMANIAM

The court held that because the letter of appointment expressly provided a one-month notice period, the Federal Court authority in Fung Keong and subsequent authorities restrict civil damages for wrongful dismissal to wages in lieu of the contractual notice period; Section 74 Contracts Act does not apply to expand damages where the contract provides a specific termination remedy. Accordingly the Sessions Court award of RM136,260 (45 months' salary) was set aside and replaced with one month's salary of RM3,028.

Citation
JA-12ANCvC-47-05/2021 (Mahkamah Tinggi)
Parties
Appellant/defendant: IFFCO (MALAYSIA) SDN BHD; Respondent/plaintiff: Ramamoorthy a/l R. Subramaniam
Court
High Court
Jurisdiction
Malaysia
Judgment Date
20 December 2022
Case Number
JA-12ANCvC-47-05/2021 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / Judgment on Appeal From Sessions Court Concerning Quantum of Damages
Outcome
Appeal allowed; Sessions Court award set aside and substituted award entered for one month's salary.
Legal Topics
Wrongful Dismissal, Measure of Damages, Notice Pay, Contracts Act S74, Pleading of Points of Law (order 18 R11)
Source Language
Malay/English
Contract Law Employment Law Civil Procedure Remedies (damages) Wrongful Dismissal Measure of Damages Notice Pay Contracts Act S74 +1 more

Case Brief

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Parties

IFFCO (MALAYSIA) SDN BHD

Appellant/defendant

Ramamoorthy a/l R. Subramaniam

Respondent/plaintiff

Procedural Posture

Civil Appeal / Judgment on Appeal From Sessions Court Concerning Quantum of Damages

Legal Issues

  1. 1 Whether damages for wrongful dismissal are limited to wages in lieu of the contractual notice period
  2. 2 Whether Section 74(1) of the Contracts Act 1950 applies where the employment contract specifies a notice period
  3. 3 Whether failure to plead a point of law at trial precludes raising it on appeal

Ratio Decidendi

The court held that because the letter of appointment expressly provided a one-month notice period, the Federal Court authority in Fung Keong and subsequent authorities restrict civil damages for wrongful dismissal to wages in lieu of the contractual notice period; Section 74 Contracts Act does not apply to expand damages where the contract provides a specific termination remedy. Accordingly the Sessions Court award of RM136,260 (45 months' salary) was set aside and replaced with one month's salary of RM3,028.

Court Disposition

Appeal allowed; Sessions Court award set aside and substituted award entered for one month's salary.

Orders

  • Appeal allowed.
  • Award of damages RM136,260.00 set aside.