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1998 MarsdenLR 1833

COURT OF APPEAL, KUALA LUMPUR

GOPAL SRI RAM JCA SITI NORMA YAAKOB JCA DENIS ONG JCA


SWEDISH MOTOR ASSEMBLIES SDN BHD
versus
HJ MD ISON BABA

CIVIL APPEAL NO: W-04-59-1997

Decided On : 01-15-98

Advocates:
For the appellant - T Thavalingam; M/s Shearn Delamore & Co
For the respondent - LG Seah; M/s Lobo & Assoc

JUDGMENT

Gopal Sri Ram JCA:

This appeal has been brought against the order of the High Court at Kuala Lumpur made on 1 August 1997 whereby certiorari was issued quashing the award of the Industrial Court which had been delivered on 26 July 1995. The brief facts and background are as follows.

The respondent was at all material times employed by the appellant as a production and maintenance manager. By a letter dated 1 August 1992, the appellant purported to terminate the respondent's services by giving him three months notice. Later, on 15 October 1992, the parties entered into a written agreement under which the respondent resigned from the employment of the appellant. Since both these documents are of some importance, they are reproduced in full below.

Private And Confidential

Hj Mohd Ison B Baba No 10 Jalan SS 15/5E 47200 Subang Jaya 1st August 1992

The General Manager Swedish Motor Assemblies Sdn Bhd Jalan Bicu Shah Alam

Dear Sir,

Notice of Termination of Service

I wish to terminate my services earlier than my due retirement date if the Company would give me mutually acceptable and adequate compensation in consideration of my services from 2nd Sept, 1975.

On the basis of the above, this letter serves as my formal three (3) month's notice for termination of service.

Best regards.

Yours sincerely, (Signed) Hj Mohd Ison B Baba.

Next, the agreement, which is in the following terms:

AGREEMENT

An Agreement made this 15th day of October, 1992 between Swedish Motor Assemblies Sdn. Bhd, Jalan Bicu, 40000 Shah Alam hereinafter referred to as the Company on one part and Tuan Hj Mohd Ison bin Baba, NRIC 4099718 of No 10 Jalan SS 15/5E, 47200, Subang Jaya hereinafter referred to as the Executive, on the other part.

WHEREAS the Executive had on 1st August, 1992 tendered his formal three (3) month's written notice, hereinafter referred to as the Notice to resign from the services of the Company and the Company had duly accepted the Notice, it is HEREBY AGREED as follows:-

1. The resignation takes effect from the expiry date of the Notice, i.e. 1st November 1992.

2. Subject to due income tax clearance by the Department of Inland Revenue, a Volvo 740 GLE 1990 year model Registration No BDC 2932 will be transferred to the Executive free of charge, however any income tax payable to be paid by the Executive.

The Company will also cover the Executive under the existing SMA Group Insurance up till the 18th of September 1993 at the Company expense.

3. The above compensation is paid by the Company to the Executive, without any admission of liability by the Company due to the mutually agreed early retirement of the Executive.

4. The Executive hereby acknowledges due acceptance of the above terms and he has no further claims of whatsoever nature against the Company in connection with his employment or in any way arising out of or in the course of his employment in the Company.

5. The Executive further acknowledges and declares the payment made to him above is in FULL and FINAL DISCHARGE of all claims he has or may have against the Company of whatsoever nature.

IN WITNESS whereof the parties hereto have set their hands the day and year first written.

Signed by the said Executive: (signed) In the presence of: (signed)

Signed for and on behalf of Swedish Motor Assemblies Sdn. Bhd: (signed) In the presence of: (signed)

Later, the respondent took the position that he had not voluntarily resigned but had been dismissed without just cause or excuse. He made representations to the Director General of Industrial Relations. These were subsequently referred by the Honourable Minister to the Industrial Court for adjudication.

The Industrial Court after hearing evidence dismissed the respondent's claim. In its award, it evaluated the evidence led by both sides and came to the following conclusion:

Since he (the respondent) said he had signed the agreement in CO 1 at p. 3 on his own accord he is estopped from saying he signed it under dur

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