Su Geok Yiam JC:

This is an appeal to the judge-in-chambers (encl. 71) against the decision of the learned deputy registrar dated 11 October 2001 dismissing the defendants' application (encl. 28) to strike out the plaintiff's statement of claim and defence to counter-claim with costs.

Facts and background

The plaintiff's claim against the defendants is for a sum of RM1,425,336.66 together with interest thereon and costs of the action being the balance of charges for services rendered by the plaintiff to the defendants in procuring a purchaser for the defendants in respect of certain properties belonging to the defendants.

The defendants are the beneficial owners of four pieces of land, namely, Lots No. 440, 441, 803 and 2450, Seksyen 4, Bandar Butterworth, Province Wellesley North held under Grant First Grade No. 30871, 30872, 33267 and 55448 (hereinafter referred to as "the said lands").

On 10 December 1999, the plaintiff filed a writ of summons and statement of claim (encl. 2) against the defendants.

Plaintiff's Statement Of Claim

In his statement of claim, the plaintiff avers that on 10 July 1996 the defendants gave to the plaintiff and one Ang Chin Huat (hereinafter referred to as "the said Ang Chin Huat") an option (hereinafter referred to as "the said option") to procure a buyer for the said lands from either MCB Group of Companies, or OSK Group of Companies or PJD Group of Companies (hereinafter referred to as "the said companies").

In para. 3 of the plaintiff's statement of claim, the plaintiff avers that on the same date, the defendants issued a letter of confirmation confirming that a service charge of 4% of the purchase price for the said lands (exclusive of tax) will be paid to the plaintiff and a further 1% of the purchase price (exclusive of tax) will be paid to the said Ang Chin Huat if the two of them being the option holders succeeded in procuring a buyer from the said companies (hereinafter referred to as "the said letter of confirmation").

According to the plaintiff, through the plaintiff's efforts, the said lands were sold to one of the said companies, namely, MCB Eastern Land Sdn Bhd (hereinafter referred to as "the purchaser").

The sale and purchase agreement in respect of the said lands was executed by the defendants as vendors and MCB Eastern Land Sdn. Bhd. as purchaser on 14 October 1996. It was stamped on 7 November 1997. The purchase price of the said lands is RM47,511,222.

In para. 7 of the plaintiff's statement of claim, the plaintiff also avers that pursuant to the said letter of confirmation dated 10 July 1996, the plaintiff is entitled to be paid a sum of RM1,900,448.88 being 4% of the purchase price of RM47,511,222 being his service charges in respect of the sale of the said lands.

On 26 January 1998, the defendants issued to the plaintiff, two cheques for the total sum of RM100,000 and on 8 April 1998, another cheque for a sum of RM375,112.22 making it a total of RM475,112.22 which represents 1% of the purchase price of the said lands. This leaves a balance of RM1,425,336.66 or 3% of the purchase price being the balance of the service charges (hereinafter referred to as "the said balance") still to be paid.

Despite several reminders, including a letter of demand dated 11 November 1998 which was sent to the defendants by the plaintiff's solicitors, the defendants have failed and neglected to pay the said balance to the plaintiff.

Defendants' Statement Of Defence

In the defendant's statement of defence the defendant contends that the plaintiff's claim should be struck out or dismissed with costs on the following grounds:

(1) the plaintiff's claim is frivolous, vexatious and an abuse of the process of the court;

(2) the plaintiff's claim is prohibited by the provisions of the Valuers, Appraisers and Estate Agents Act 1981 (hereinafter referred to as "the said Act") as the plaintiff is not a registered estate agent;

(3) the plaintiff's claim is invalid because:

(a) the service charges are