[1] Before us are two appeals which emanated from two civil suits, namely Civil Suit No MT3-22-421-2003 (suit 421) and Civil Suit No MT3-22-422 -2003 (suit 422) which were heard together by the learned judge as the factual matrix was the same except that in suit 421 the plaintiff is Nippon Express (M) Sdn Bhd and in suit 422 the plaintiff is Nittsu Transport Service (M) Sdn Bhd.

[2] The High Court after a full trial dismissed the plaintiffs' claims which resulted in these two appeals by the plaintiffs/appellants which we also heard together on 30 January 2013. After giving due consideration to the respective submissions from counsel, we allowed the appeal for reasons which are set out below.

Background Facts

[3] The appellant/plaintiff in appeal B-02-79-01-2012 is Nippon Express Malaysia Sdn Bhd while the respondent/defendant is Che Kiang Realty Sdn Bhd. In Appeal No: B-02-135-01-2012, the appellant/plaintiff is Nittsu Transport Service (M) Sdn Bhd while the respondent/defendant is Che Kiang Realty Sdn Bhd.

[4] In this judgment and for convenience the appellants will be referred to Nippon and Nittsu respectively when the circumstances require it.

[5] The appellants on 5 June 1997 respec