JUDGMENT

Mary Lim Thiam Suan JCA:

[1] These two related appeals were respectively filed by the 1st and 2nd defendants. The High Court had allowed the respondent's claim for specific performance of an agreement to extract timber and had further ordered the appellants to pay damages in the sum of RM2,680,511.68 for the timber extracted. Upon full consideration of the submissions, the records of appeal and the grounds of judgment, both appeals were unanimously allowed.

[2] For ease of reference, the parties will be referred to as they were at the High Court.

Material Background

[3] The 1st defendant is the registered and beneficial owner of a total of 467 parcels of native titles lands located in Kampung Kieyap, Ranau and measuring an area of over 5,000 acres [the said lands]. Timber could be found on the said lands.

[4] On 22 March 2011, the plaintiff and the 1st defendant entered into an agreement wherein the 1st defendant agreed to sell to the plaintiff "all the Commercial Timber extracted from the said lands" irrespective of timber species at the rate of RM700,000.00 in which "20% shall be paid upon signing of this Agreement, putting on tractor on site 20%, issuance of Form I or Form II