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2025 MarsdenLR 1770

HIGH COURT MALAYA PENANG
GIC CONSULTANCY SDN BHD – Appellant
Versus
WEALTHY HOMES EXPERT SOLUTIONS SDN BHD – Respondent
[Civil Suit No: PA-22NCvC-133-08/2023]



Petitioner Advocates:Mahendren Kathiravelu,Vaasudevan Puspagaran,Sheshalini Ramesh,Sharmila Shanthini Morgan ,Respondent Advocate: Devkumar K Kumaraendran,Yaw Xinying,Sagana Kaliyapan

The burden of proof lies on the plaintiff to establish claims on a balance of probabilities, and failure to provide sufficient evidence results in dismissal of the claim.

Headnote:(A) Evidence Act 1950 - Sections 101, 12, and 103 - Commission claim - Plaintiff's claim for RM 1,005,066.62 dismissed due to failure to prove the applicable commission rate and discrepancies in the claim - Defendant conceded to a commission of RM 518,735.75, set off against prior payments, resulting in a net payment order of RM 266,875.98. (Paras 10, 49, 50)

(B) Burden of Proof - The burden of proof lies on the plaintiff to establish its claim on a balance of probabilities; failure to produce corroborative evidence leads to dismissal of the claim. (Paras 10, 13)

(C) Oral Agreement - The existence of an oral agreement is acknowledged, but the terms are disputed leading to conflicting claims regarding commission amounts. (Paras 8, 14)

Facts of the case:
The plaintiff sought commission for securing buyers for housing units under an oral agreement with the defendant, who contested the commission amount based on performance criteria and discrepancies in the claims. (Paras 1-7)

Findings of Court:
The court found insufficient evidence from the plaintiff to substantiate the claimed commission, leading to the dismissal of the claim for RM 1,005,066.62. The defendant's admission of a lesser commission resulted in a net payment order. (Paras 49, 50)

Issues: The main issue was the determination of the correct commission rate and the total amount payable under the oral agreement. (Paras 8, 10)

Ratio Decidendi: The court emphasized the plaintiff's failure to meet the burden of proof required to establish its claim, leading to the dismissal of the higher claim while acknowledging the defendant's admission of a lesser amount owed. (Paras 10, 49)

Result: Plaintiff's claim dismissed; defendant ordered to pay RM 266,875.98.

Table of Content
1. existence of oral agreement and commission terms. (Para 1 , 3 , 4 , 5 , 6 , 7)
2. dispute over commission amount and burden of proof. (Para 8 , 9)
3. burden of proof lies with the plaintiff. (Para 10 , 11 , 12 , 13)
4. plaintiff's failure to substantiate claims. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
5. discrepancies in claims undermine credibility. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29)
6. conflicting pleadings raised concerns. (Para 31 , 32 , 33)
7. defendant's defense and admissions. (Para 39 , 40 , 46)
8. final ruling and order for payment. (Para 49 , 50)
Quay Chew Soon J:

Introduction

[1] This is an action by the Plaintiff ("P") against the Defendant ("D") for the payment of commission in the sum of RM 1,005,066.62 pertaining to the sale of certain housing units.

[2] After a full trial, I dismissed P's claim. Here are the grounds of my judgment.

Background Facts

[3] The parties herein entered into an oral agreement for P to find buyers for the housing units at (i) Quay West, (ii) The Stone and (iii) P3 Residence (collectively the "three projects"). Whereby D would source units from the developers of the three projects and P would secure buyers for those units. In consideration thereof, D will pay a commission to P.

[4] Given that the agreement between the parties was not formalised in writing, unsurprisingly, there is uncertainty regarding its terms and conditions. The parties offered their respective version of what the oral agreement entails, and what had transpired in this matter.

[5] P's version is this.

(a) For the work done by P, which is to act as an agent to secure buyers for the allocated units in the three projects, D agreed to pay a commission to P.

(b) The commission is based on a percentage of 2 %, 4 % and 7 % of the net price of the booking made by a buyer secured by P. The percentage would vary according to the package chosen by the buyer.

(c) At para 19 of the statement of claim, P alluded to a "rebate package of 28 %", whatever that means. P pleaded the following:

"19. In relation to that, from the very beginning, the Plaintiff has stated that the director of the Defendant's company, June Goh, has promised that with the director of the Plaintiff's company that the Defendant would give a rebate package of 28% and a sales commission of 4% for Quay West project."

(d) P has successfully sold:- (i) 33 units at Quay West; (ii) 16 units at The Stone; and (iii) 2 units at P3 Residence.

(e) Despite P fulfilling its obligation under the oral agreement, D refused to pay the applicable commission amounting to RM 1,005,066.62.

(f) The aforementioned sum is arrived at as follows.

[6] According to P, the basic components of the oral agreement are as follows:

(a) P would promote and advertise the units in the three projects that are allocated to D, with a view to getting buyers to buy the said units;

(b) D agreed to pay to P a commission of 2%, 4% or 7% based on the sale price of the units;

(c) The buyers secured by P would contact or go to the developer's office to get more information about the project, and make a booking if interested;

(d) If there is a buyer secured by P who has made a booking for a unit at the price offered to D by the developer, D will send the booking form to P. This is to notify that P has successfully secured a buyer. And for P's record of the number of buyers which it has successfully obtained for D;

(e) P would then send a proforma invoice to D to confirm the units that have been purchased by the buyers secured by P. Also to confirm the selling price and the agreed commission to be paid by D, for each unit purchased by the buyers secured by P;

(f) After receiving the proforma invoice, D would confirm the same if the information therein is correct. This is for the purpose of P preparing the invoice, where the proforma invoice and the invoice at this early stage are for 2%, 4% and 7% of the sales payment;

(g) The proforma invoice is to inform D of the amount to be paid to P; and

(h) After the re

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