JUDGMENT

Su Tiang Joo J:

Introduction

[1] After having paid a sum of RM1,353,550.00 representing 25% of the contract sum, both the plaintiffs asserted that they have been defrauded in a contract for the charter of two flights to Gold Coast, Australia, they sued for, inter alia, total failure of consideration, breach of contract, fraud, negligence and misrepresentation by the defendants for the monies that were paid to and received by the first defendant. The plaintiffs claim for the monies be returned to them, loss of profit, general damages, aggravated and exemplary damages, interest on the monies and damages with costs. Besides resisting the claim, the first defendant counterclaimed for payment in the sum of RM541,420.00 being a further 10% of the invoiced amount as its cancellation fees.

[2] After a trial conducted over 6 days with a total of 5 witnesses called, judgment was pronounced in favour of only the first plaintiff and the counterclaim of the first defendant was dismissed. These are the grounds for the decision made.

Issues To Be Determined

[3] The following are the parties' agreed issues to be determined in this action (Enclosure 293) as crafted by them:

For the main action

i)