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2025 MarsdenLR 1751

HIGH COURT MALAYA KUALA LUMPUR
GULATIS GLOBAL BUSINESS SDN BHD – Appellant
Versus
QIJANG TECHNOLOGIES SDN BHD & ORS – Respondent
[Civil Suit No: WA-22-NCvC-686-12/2023]



Petitioner Advocates:Harvinderjit Singh,Shanthiny Ya Ting ,Respondent Advocate: Harish Nair,Maxine Lim Jia Xin

A plaintiff cannot enforce a contract to which it is not a party, and pleadings must contain sufficient particulars to establish a cause of action.

Headnote:(A) Companies Act 2016 - Section 20 - Rules of Court 2012 - Order 18 r 19(1)(a)-(d) - Plaintiff's claim against 4th Defendant struck out for lack of contractual relationship under the Consultancy Agreement - The agreement was with a different legal entity, hence no privity of contract - Claims of new facts and lack of particulars in pleadings were deemed inconsistent and vague, failing to satisfy legal standards for a cause of action. (Paras 9, 12, 14, 18, 33, 45)

Facts of the case:
The Plaintiff, a private limited company, alleged breach of contract against the 4th Defendant based on a Consultancy Agreement. The 4th Defendant's application to strike out the claim was based on the argument that the Plaintiff was not a party to the agreement.

Findings of Court:
The Court found that the Plaintiff had no reasonable cause of action against the 4th Defendant as the Consultancy Agreement was with a different legal entity and the pleadings lacked sufficient particulars.

Issues: The primary issues addressed were whether the Plaintiff had a valid claim against the 4th Defendant and if the pleadings contained adequate particulars to substantiate the claims.

Ratio Decidendi: The court ruled that the doctrine of privity of contract precluded the Plaintiff from enforcing a contract to which it was not a party, and the failure to plead material facts adequately rendered the claim unsustainable.

Result: The Plaintiff's claim against the 4th Defendant was struck out.

Table of Content
1. background of the plaintiff's claims. (Para 2 , 3 , 4 , 5 , 6)
2. arguments presented by both parties. (Para 7 , 8)
3. analysis of contractual relationship. (Para 9 , 10 , 11 , 12 , 13 , 14)
4. doctrine of privity of contract. (Para 15 , 16 , 17 , 18)
5. new facts raised in reply to defense. (Para 19 , 20 , 21 , 22 , 23)
6. pleading inconsistencies and principles. (Para 24 , 25 , 26 , 27 , 28)
7. introduction of new documents in pleadings. (Para 29 , 30 , 31 , 32)
8. requirements for pleadings. (Para 33 , 34 , 35 , 36 , 37)
9. sufficiency of particulars in pleadings. (Para 38 , 39 , 40 , 41 , 42)
10. consequences of insufficient pleadings. (Para 43 , 44)
11. principles governing striking out of claims. (Para 45 , 46)
12. conclusion and order of the court. (Para 47)
Roz Mawar Rozain J:

Introduction

[1] On 19 March 2025 this Court had allowed the 4th Defendant's application via encl 24 to strike out the Plaintiff's claim against it. This Court's decision was premised on O 18 r 19(1)(a)-(d) Rules of Court 2012 (RoC) and the trite legal principles established by our case laws. Reasonable costs of RM5.000 was awarded to the 4th Defendant. The Plaintiff has appealed against my decision. My full written reasons are iterated below.

Background Facts

[2] The Plaintiff is a private limited company engaged in the business of wholesaling, retailing, and trading personal protective equipment. It was formerly known as Gulatis Global Gloves Sdn Bhd.

[3] The 1st Defendant is a private limited company providing information technology services, with the 2nd and 3rd Defendants as its directors and/or shareholders.

[4] The 4th Defendant is an individual who, according to the Plaintiff's Statement of Claim (SoC), had allegedly entered into a Consultancy Agreement with the Plaintiff dated 12 March 2021 (Consultancy Agreement).

[5] The Plaintiffs claim against the 1st to 3rd Defendants is primarily for breach of a Micro-Fulfilment Service Agreement (MFSA) executed on 16 August 2021 between the Plaintiff and the 1st Defendant.

[6] As against the 4th Defendant, the Plaintiffs claim is for breach of the alleged Consultancy Agreement. The reliefs sought by the Plaintiff against the 4th Defendant are:

(a) a declaration that the 4th Defendant acted in breach of the contractual obligations under the Consultancy Agreement; and

(b) a declaration that all the Defendants (the 1st to the 4th Defendants) are jointly and severally liable to pay special damages in the sum of RM1,748,245.20.

The 4th Defendant's Application (Enclosure 24)

[7] The 4th Defendant's application to strike out cited 3 main grounds:

(i) The Plaintiffs claim of breach of contractual obligations under the Consultancy Agreement was misconceived;

(ii) The Plaintiff raised new facts in their Reply to the 4th Defendant's Defence, which were inconsistent with the Plaintiffs SoC; and

(iii) The Plaintiffs SoC lacked particulars and elements of the acts and/or omissions that allegedly constitute the breach of the Consultancy Agreement.

[8] The Plaintiff, on the other hand, contended that:

(a) There were triable issues raised by the 4th Defendant which ought to be ventilated at trial;

(b) The facts raised in the Plaintiffs Reply to the 4th Defendant's Defence were consistent with their claim; and

(c) The Plaintiffs pleaded elements of tort were satisfied, with particulars adequately pleaded in the SoC.

Analysis And Findings By This Court

Ground 1: The Breach Of Contractual Obligations Under The Consultancy Agreement Was Misconceived

[9] The cornerstone of the Plaintiffs claim against the 4th Defendant was that the alleged Consultancy Agreement dated 12 March 2021. In paras 18 and 19 of the Statement of Claim, the Plaintiff pleaded:

"18. The Plaintiff contends and will contend that the 4th Defendant acted in breach of his contractual duties under the Consultancy Agreement.

Further to the above, the Plaintiff contends and will contend that the 4th Defendant carried out his services negligently and in breach of his contr

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