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2025 MarsdenLR 4825

HIGH COURT MALAYA KUALA LUMPUR
MALTOOL INDUSTRIES SDN BHD – Appellant
Versus
THRIVE GLORY SDN BHD & ANOR – Respondent
[Civil Appeal No: WA-12BNCC-35-08/2022]



Petitioner Advocates:Ravin Woodhull,Fong Lip Jeen ,Respondent Advocate: Jason Lai

The requirement for expert evidence is essential in proving vehicle defects and establishing claims under the Sale of Goods Act, as failure to provide such evidence is fatal to the claim.

Headnote:(A) Sale of Goods Act 1967 - Section 16 - Consumer Protection Act 1999 - Appeal against dismissal of claim for defective vehicle - Appellant failed to prove breach of implied conditions of merchantable quality and fitness for purpose - Requirement for expert evidence established as essential in vehicle defect claims - Appellant's unilateral rejection of vehicle during warranty period deemed unjustified. (Paras 18-24, 55-62)

(B) Burden of Proof - Appellant's failure to call expert witness fatal to claim - Evidence of defects insufficient without expert testimony to establish merchantability. (Paras 23-25, 27-28)

(C) Merchantable Quality - Standard does not require perfection; complaints do not equate to defects affecting merchantability. (Paras 47-48)

(D) Remedies - Total rejection of vehicle without exhausting warranty remedies deemed unreasonable. (Paras 34-36, 56-58) (E) Conclusion - Appeal dismissed with costs awarded to Respondents. (Para 62)

Table of Content
1. overview of the appellant's claim and vehicle defects. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. appellant's arguments regarding evidence and expert testimony. (Para 9 , 10 , 11 , 12)
3. respondents' defense and burden of proof. (Para 13 , 14 , 15 , 16)
4. key issues in the appeal. (Para 18 , 19 , 20)
5. burden of proof and necessity for expert evidence. (Para 21 , 22 , 23 , 24 , 25 , 26)
6. appellant's rejection of the vehicle and its justification. (Para 29 , 30 , 31 , 32 , 33)
7. discussion on remedies and warranty obligations. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43)
8. distinguishing defects from inherent characteristics. (Para 44 , 45 , 46)
9. understanding merchantable quality. (Para 47 , 48)
10. application of the consumer protection act 1999. (Para 49 , 50 , 51 , 52 , 53 , 54)
11. final conclusion and dismissal of the appeal. (Para 55 , 56 , 57 , 58 , 59 , 60 , 61)
Wan Muhammad Amin Wan Yahya J:

[1] This is an appeal by the Appellant against the decision of the Sessions Court dated 17 August 2022, which, after a full trial, dismissed its claim against the Respondents. The claim concerned a brand new Mazda vehicle which the Appellant alleged was defective and not of merchantable quality. The Appellant sought compensation for the vehicle's value and damages for loss of use, having unilaterally rejected the vehicle on the basis that the Respondents had allegedly failed to rectify the defects despite multiple repair attempts ("this Appeal").

A] Salient Background Facts

[2] The Appellant purchased a brand new Mazda 6 2.5L SKYACTIV (A) vehicle bearing registration number VCX 8173 ("the Vehicle") from the 1st Respondent (dealer) for RM193,658.02 inclusive of registration fees and insurance premium. The 2nd Respondent is the distributor of Mazda vehicles in Malaysia.

[3] The Appellant's cause of action against the 1st Respondent allegedly arises from direct contractual liability under the Sale of Goods Act 1967 ("SOGA") for the sale of the Vehicle. The Appellant's cause of action against the 2nd Respondent stemmed from alleged liability under the warranty provisions, based on its attempts to repair the vehicle at its Shah Alam service centre, as well as its technical expertise and relationship with Mazda Corporation Japan in resolving vehicle defects. The purchase and the roles of the parties are not in dispute.

[4] The Vehicle was financed through a hire purchase agreement with Hong Leong Bank Bhd, which subsequently assigned its rights to the Appellant by a Deed of Assignment dated 11 November 2020, enabling the Appellant to sue in its own name. This assignment is not disputed.

[5] The Vehicle was delivered to the Appellant on 29 April 2019 and was purchased as a company car to be used by the company's manager. The Vehicle came with a five-year warranty period.

[6] From shortly after delivery, the Appellant complained of various defects with the Vehicle, including engine stalling during traffic, steering vibration, vibration when in parking position, and jerking at slow speed. The Vehicle was sent to the Respondents' service centre for repairs multiple times over approximately six months from mid-2019 to early 2020.

[7] The Appellant unilaterally rejected the Vehicle in 2020, well within the five-year warranty period, with approximately four years of warranty coverage remaining.

[8] The Appellant's case is that the Respondents were unable to repair the Vehicle satisfactorily, rendering it not of merchantable quality. The Appellant essentially sought compensation equivalent to the value of a new car and damages.

B] Appellant's Arguments

[9] The Appellant argued that the Sessions Court erred in dismissing the claim for failure to call an expert witness. The Appellant contended that the Respondents' own documentary evidence demonstrated the Vehicle's defects, making expert testimony unnecessary.

[10] The Appellant relied heavily on contemporaneous documents from the Respondents, including service records showing the

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