Poteck Enterprise Sdn Bhd Richallenge Corporation Sdn Bhd

Poteck Enterprise Sdn Bhd Richallenge Corporation Sdn Bhd

The High Court's awards were varied because the trial judge erred in relying on IPC14 instead of the revised IPC14R for valuation of work done, and because variation works and loss of profit were not proved with required foundational factual evidence; accordingly the award for work done was reduced to RM783,200.00 (based on IPC14R), variations set to nil, advance payment RM500,000.00 retained, performance bond refunded in full (RM2,137,500.00), loss of profit reduced to nominal RM10,000.00, producing a substituted damages award of RM3,430,700.00 with interest and costs as ordered.

Citation
S-02(IM)(NCvC)-151-01/2022 (Mahkamah Rayuan)
Parties
Appellant (defendant in High Court): Poteck Enterprise Sdn Bhd; Respondent (plaintiff in High Court): Richallenge Corporation Sdn Bhd
Court
IM
Jurisdiction
Malaysia
Judgment Date
14 May 2025
Case Number
S-02(IM)(NCvC)-151-01/2022 (Mahkamah Rayuan)
Procedural Posture
Appeal on Assessment of Damages Arising From Terminated Construction Sub Contract / Court of Appeal Judgment on Appeal (assessment of Damages)
Outcome
Appeal allowed in part; High Court assessment of damages varied and substituted by Court of Appeal
Legal Topics
Wrongful Termination, Assessment of Damages, Performance Bond Refund, Loss of Profit, Variations, Interim Payment Certificate, Standard of Appellate Review
Source Language
Malay/English
Contract Construction Law Commercial Law Evidence Civil Procedure Wrongful Termination Assessment of Damages Performance Bond Refund +4 more

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Parties

Poteck Enterprise Sdn Bhd

Appellant (defendant in High Court)

Richallenge Corporation Sdn Bhd

Respondent (plaintiff in High Court)

Procedural Posture

Appeal on Assessment of Damages Arising From Terminated Construction Sub Contract / Court of Appeal Judgment on Appeal (assessment of Damages)

Legal Issues

  1. 1 Whether the High Court correctly valued work done using IPC14 instead of IPC14R
  2. 2 Whether variation works (rock excavation) were proven and payable
  3. 3 Whether performance bond deduction must be refunded in full or pro rata under 85%-15% arrangement

Ratio Decidendi

The High Court's awards were varied because the trial judge erred in relying on IPC14 instead of the revised IPC14R for valuation of work done, and because variation works and loss of profit were not proved with required foundational factual evidence; accordingly the award for work done was reduced to RM783,200.00 (based on IPC14R), variations set to nil, advance payment RM500,000.00 retained, performance bond refunded in full (RM2,137,500.00), loss of profit reduced to nominal RM10,000.00, producing a substituted damages award of RM3,430,700.00 with interest and costs as ordered.

Court Disposition

Appeal allowed in part; High Court assessment of damages varied and substituted by Court of Appeal

Orders

  • Damages awarded to Plaintiff (Respondent) in the sum of RM3,430,700.00
  • Interest at 8% per annum from 29.09.2014 to date of judgment on RM3,430,700.00