JUDGMENT

SM Komathy Suppiah J:

The Trial

[1] This action is brought by the plaintiff, Lee Teck Lip against the defendants Lee Kok Thian and Thien Seng Chan Sdn Bhd for the refund of monies arising out of an agreement to purchase two shoplots.

Background Facts

[2] Save where otherwise indicated, the following facts were all agreed or not disputed.

[3] The plaintiff and the first defendant were goods friends who had many business dealings with each other. The first defendant is a director and shareholder in the second defendant, a property development company.

[4] In 2012, the second defendant was involved in a housing development project known as D' Kebun Commercial Centre at Kota Kemuning, Selangor. The project involved the construction of 5 storey shoplots for sale to the public. The plaintiff approached the first defendant to inquire about the development and was informed that the selling price was yet to be determined and the estimated selling price for each unit was between RM2 million to RM2.3 million.

[5] On 3 January 2012, the plaintiff and the first defendant met at a coffee shop. There, the plaintiff handed to the first defendant a banker's cheque for RM500,000.00 made payable to