7 Feb 2023
1. ) MLGH (Sabah) Sdn Bhd 2. ) The State Government of Sabah Rainbow Bay Sdn Bhd
- Citation
- S-01(NCvC)(W)-163-04/2019 (Mahkamah Rayuan)
- Court
- NCvC
- Case number
- S-01(NCvC)(W)-163-04/2019 (Mahkamah Rayuan)
The Court held there was no fundamental breach by MLGH in failing to deliver the 150-acre title; performance of the JVA/SA was legally impossible and therefore frustrated by (i) the rejection of the DEIA Final Report and (ii) the subsequent s9A amendment to the Sabah Land Ordinance prohibiting alienation of the affected land; frustration was not self-induced by the State; the State was not liable for inducement; relief is governed by Civil Law Act s15 and limited to proven expenses/benefits prior to discharge, leading to an award of RM6,355,371.00 to the Developer against MLGH with interest.