Malaysia Case Law: Decisions & Judgments

Topic

Termination for fundamental breach

Legal area

Court

15 Aug 2025

REALCO PROPERTIES SDN BHD JT BINAJATI SDN. BHD

Citation

CA-B52C-3-04/2023 (Mahkamah Sesyen)
Court

Sessions Court
Case number

CA-B52C-3-04/2023 (Mahkamah Sesyen)

On the balance of probabilities the Plaintif failed to discharge the burden to prove defects and utility‑pipe interference; Plaintif breached contractual obligations by failing to appoint a site supervisor and by delaying/withholding payments, thus Defendan validly terminated for fundamental breach and is entitled to outstanding progress sums (RM101,229.53), retention (RM6,982.01), interest at 5% and costs; Plaintif's claims (including LAD and claimed RM333,742) are dismissed.
5 Sept 2024

ACMELAND DEVELOPMENT SDN. BHD. LEMBAGA KEMAJUAN JOHOR TENGGARA

Citation

JA-22NCvC-129-09/2019 (Mahkamah Tinggi)
Court

High Court
Case number

JA-22NCvC-129-09/2019 (Mahkamah Tinggi)

The court found planning permission was a condition precedent fundamental to the JVA; plaintiff's failure to obtain that permission (and to exhaust available remedies) constituted a fundamental breach and rendered performance impossible such that defendant lawfully terminated and, alternatively, the JVA was frustrated. Plaintiff failed to prove causal loss and to strictly prove claimed special damages; under s15(2) Civil Law Act the deposit paid must be returned subject to any allowable expenses, and fairness required refund of the deposit.
27 Oct 2023

PD PARADE VILLAGE SDN. BHD. MARITIME INTERNATIONAL GATEWAY SDN. BHD.

Citation

NA-22NCvC-54-11/2021 (Mahkamah Tinggi)
Court

High Court
Case number

NA-22NCvC-54-11/2021 (Mahkamah Tinggi)

On the balance of probabilities the defendant breached fundamental contractual obligations (failure to obtain approvals within agreed periods, failure to commence and complete works within five years, failure to pay agreed sums and to comply with authority conditions), those breaches entitled plaintiff to terminate the JVA; defendant's force majeure and vacant possession defences were rejected as self‑induced or unproven; defendant's counterclaim lacked documentary proof; accordingly judgment for plaintiff with declarations and costs (RM30,000) was proper.
31 Jan 2023

SUNGEI WANG INVESTMENT LTD Lim Hui Seng

Citation

WA-22NCvC-41-01/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCvC-41-01/2019 (Mahkamah Tinggi)

Defendant materially and fundamentally breached the Agreement by failing to transfer the agreed shares, failing to appoint plaintiff's nominee to company boards and failing to procure necessary IPO due diligence and approvals; he became uncontactable and disabled performance in its entirety such that plaintiff lawfully terminated under s.40 Contracts Act 1950 and was entitled to recover monies paid. The RM2.8m cash advances were non-gratuitous benefits received by defendant and, together with the RM2m tranche, unjustly enriched him; equity imposes a constructive/resulting trust and restitutio…
1 Nov 2021

1. ) ERA UNIVERSE DEVELOPMENT SDN. BHD. 2. ) MARSLAND DEVELOPMENT SDN. BHD. 1. ) Tang Twang Loi 2. ) Lau Teng Tiong

Citation

JA-12ANCvC-30-10/2020 (Mahkamah Tinggi)
Court

High Court
Case number

JA-12ANCvC-30-10/2020 (Mahkamah Tinggi)

The developer’s admitted failure to deliver vacant possession by a contractual date made time of the essence and amounted to a fundamental breach; therefore the purchasers validly terminated the SPA, no triable issues arose from prior documents or Bumiputera designation because the SPA and Overriding Agreement superseded prior documents, and summary judgment under Order 81 r1 was properly granted and should be affirmed.

Malaysia Case Law

REALCO PROPERTIES SDN BHD JT BINAJATI SDN. BHD

ACMELAND DEVELOPMENT SDN. BHD. LEMBAGA KEMAJUAN JOHOR TENGGARA

PD PARADE VILLAGE SDN. BHD. MARITIME INTERNATIONAL GATEWAY SDN. BHD.

SUNGEI WANG INVESTMENT LTD Lim Hui Seng

1. ) ERA UNIVERSE DEVELOPMENT SDN. BHD. 2. ) MARSLAND DEVELOPMENT SDN. BHD. 1. ) Tang Twang Loi 2. ) Lau Teng Tiong