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2021 MarsdenLR 1529

HIGH COURT MALAYA JOHOR BAHRU
NORDIN SIDIN – Appellant
Versus
MOHD KHALID NORDIN ORS (ENCL 39) – Respondent
[Civil Suit No: JA-21NCVC-15-03-2020]



Petitioner Advocates:Mohd Fairuz Abdullah ,Respondent Advocate: Amalia Marsita Hamdan,Noor Anisha Mohd Musafri

Summary judgment can be granted when there are no triable issues raised by the Plaintiff, as seen through unsubstantiated claims and clear contractual obligations.

Headnote:(A) O 14 of the Rules of 2012 – Summary judgment application – The Plaintiff sought damages against the Fourth Defendant for alleged misrepresentation and negligence leading to business losses. The Defendant counterclaimed for the sum of MYR232,230.25 for defaulting on the financing facility. Court found no triable issues raised. (Paras 1, 4, 33)

(B) Negligence – The Plaintiff claimed the Fourth Defendant failed to conduct a feasibility study as per the MOU. Court ruled the duties were not outlined and no nexus secured liability for business failure. (Paras 8-11)

(C) Triable

Issues – The Plaintiff's contentions were unsubstantiated and did not meet required thresholds for a trial, with signed documents confirming obligations. (Paras 13-16, 30)

(D) Conclusion – Summary judgment was granted in favor of the Fourth Defendant, as no defensible grounds were raised by the Plaintiff. (Paras 33-35)

JUDGMENT

Evrol Mariette Peters JC:

Introduction

[1] This was the Fourth Defendant's application ("this Application") in enclosure 39 for summary judgment pursuant to O 14 of the Rules of 2012 ("Rules of ") for its counterclaim against the Plaintiff, for the sum of MYR232,230.25.

The Background Facts

[2] The Plaintiff is an individual, whilst the First Defendant, the Chief Minister of Johor at the material time, had officiated and launched a Programme known as JohorMart ("the Programme") on 25 April 2015. The Plaintiff participated in the Programme by entering into an Operator Agreement with the Third Defendant. The Fourth Defendant, Majlis Amanah Rakyat ("MARA") via a letter ("Surat Tawaran Pembiayaan Perniagaan MARA") dated 11 February 2016, offered the Plaintiff a Bai Al Inah financing facility ("the Facility") in the amount of MYR220,000, for the purpose of the Plaintiff's participation in the Programme. The Facility was accepted by the Plaintiff.

[3] The Plaintiff's JohorMart grocery store, under the Programme, was finally opened on 1 April 2017, but due to certain challenges, he suffered losses. As a result thereof, the Plaintiff eventually issued a letter to the Perbadanan Usahawan Johor Sdn Bhd (a shareholder of the Third Defendant), to surrender the JohorMart grocery store.

[4] On 12 February 2020, the Plaintiff instituted an action against the Defendants for damages for the failure of her business, claiming, inter alia, that the Fourth Defendant had not only misrepresented, but had failed to conduct a feasibility study of the potential risks to the business, and had wrongfully disbursed the money under the Facility to the Third Defendant.Since the Plaintiff had defaulted on the Facility, the Fourth Defendant filed a counterclaim, and on 11 September 2020, filed this Application, which was allowed for the following reasons.

The Applicable Law

[5] It is trite law as stated in several cases including National Company For Foreign Trade v. Kayu Raya Sdn Bhd , 1984 MarsdenLR 58 , that the Court may order summary judgment only in plain and obvious cases.

[6] The burden is on the Plaintiff in this case, to satisfy the Court why judgment should not be given against her in the counter-claim: per George Seah FJ in National Company For Foreign Trade v. Kayu Raya Sdn Bhd ; [1984] 2 CLJ 220; [1984] 1 MLRA 190, 1984 MarsdenLR 58 , which has been followed in a plethora of cases including Cempaka Finance Bhd v Ho Lai Ying & Anor; 2005 MarsdenLR 191 ; [2006] 3 CLJ 544; [2007] 1 AMR 525.

[7] It is pertinent to note that the issue that had to be addressed was whether the Plaintiff has a triable defence to the counterclaim. 'This simply means that it is for the Plaintiff to show on merits, he has a good defence to the counterclaim, or that a difficult point of law is involved, or the dispute is as to the fact which is to be tried or any other circumstances showing reasonable grounds of a bona fide defence:' per Mohamed Dzaiddin J in Syarikat Kerjasama Serbaguna Tunas Muda Sungai Ara v. Ghazali Bin Ibrahim , 1985 MarsdenLR 792 .

Contentions, Evaluation, And Findings

Whether the Fourth Defendant was negligent in ensuring the proper management of the Programme

[8] The Plaintiff averred that there was a Memorandum of Understanding ("MOU") (exhibited as A2 to the Affidavit-In-Reply affirmed by the Plaintiff on 1 October 2020), and pursuant thereto, the Fourth Defendant assumed the duty and obligation to conduct a feasibility study of the potential risks to the business that the Plaintiff had embarked on.

[9] I found the Plaintif's argument untenable in view of the fact that the MOU, which was between the Plaintiff and the Third Defendant, was prepared not by the Fourth Defendant, but by the Third Defendant and merely copied to the Fourth Defendant. Furthermore, there was no requirement in the MOU or any document whatsoever for a feasibility study to be conducted.

[10] Secondly, the Plaintiff on his own volition, and without any encouragement whatsoe


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