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2010 MarsdenLR 947

HIGH COURT MALAYA KUANTAN
CH CHOO & SONS SDN BHD – Appellant
Versus
WONG NYUK SHING @ WONG TECK TSIN – Respondent
[Civil Suit No: 22-5-2002]



The plaintiffs failed to establish their legal claim regarding profit share, lacking sufficient evidence and adherence to legal pleading requirements.

Headnote:(A) Contracts Act 1950 - Sections 71, 101, and 103 - Dispute over shares from sale of land - Plaintiffs claimed 30% share in profits from land sale; however, they failed to prove contribution to joint venture or any legal right to sue - The court finds no basis for the claim due to lack of evidence and contradiction in pleadings. (Paras 1-20)

(B) Burden of Proof - The plaintiffs hold the burden to prove their claims as pleaded; failure to present required evidence leads to dismissal of claims. Court emphasizes that parties are bound by their pleadings, and any amendments must be properly applied for. (Paras 15-19)

(C) Legal Personality - The court confirms that separate legal entities cannot assert claims meant for another party, reiterating the doctrine of separate legal personality. (Paras 5-6) Fact of the case: The plaintiffs’ claims were weakened by their failure to contribute to the purchase of the land in question and their reliance on oral agreements contradicting their pleadings. Legal principles identified include the necessity of sufficient evidence to support claims, the importance of adhering to agreed statements of fact, and distinguishing between separate legal entities.

Findings of Court:
The plaintiffs did not establish their case based on the evidence presented and were therefore dismissed.

Issues: Whether the plaintiffs established a legal claim based on their pleadings and evidence regarding their share in land profits.

Ratio Decidendi: The court found that the lack of evidence to support the plaintiffs' claims, combined with contradictions in their submitted case, precluded a legal result in their favor.

Result: The plaintiffs' claim is dismissed with costs.

Table of Content
1. plaintiffs' claim based on alleged profits from land sale. (Para 1 , 2)
2. court's analysis of evidence and lack of established claims. (Para 4 , 5)
3. challenges on plaintiffs' duty to amend pleadings. (Para 6 , 12)
4. legal basis for rejection of unpleaded claims under contracts act. (Para 7 , 9)
5. court's preference for documentary over oral evidence. (Para 8 , 10)
6. failure of plaintiffs under s 71 of contracts act. (Para 13 , 16)
7. defendant's rebuttal of plaintiffs' claims and lack of evidence. (Para 14 , 18)
8. judgment dismissal of plaintiffs' claim with costs. (Para 19)
VT Singham J:

[1] The plaintiffs' claim against the defendant as per Statement of Claim dated 29.12.2001 is, for the sum of RM1,260,093.70 million being 30% share of the profits derived from the sale of land held under C.T. 4574 Lot 842, Mukim Triang, Daerah Temerloh (hereinafter referred to as 'the said land'). However, through several amendments made during the course of the trial the plaintiffs' claim stands at RM1,092,370.44 million.

[2] The defendant has denied the plaintiffs' claim. By the Statement of Defence, the defendant has pleaded that amongst others, the agreement between the plaintiffs and N.S. Wong Holding Sdn Bhd was that:-

(i)

(a) A company known as Syarikat Pembangunan Pesertaan Setia Sdn Bhd will buy the said land at the price of RM1,099,687.50 million.

(b) The plaintiffs and N.S. Wong Holding Sdn Bhd will have to respectively contribute equally as additional capital towards the said company to pay for the purchase at RM1,099,687.50. At the request of the plaintiffs, N.S. Wong Holding Sdn Bhd had advanced the deposit sum being RM109,968.75 on the agreement or assurance from the plaintiffs to refund their share being RM55,021.50 before the completion date.

(c) The balance of the purchase price being RM989,718.75 have to be paid by the plaintiffs and N.S. Wong Holding Sdn Bhd equally towards the capital of the said joint venture company.

(d)On or before the completion date of the Sale and Purchase agreement, the plaintiffs had failed, refused or neglected and/or could not afford to pay the balance of their share towards the purchase price being RM494,859.38.

(e) The joint venture company in which the plaintiffs and N.S Wong Holding Sdn Bhd, were the shareholders had subsequently agreed to sell the said land to the defendant at the cost price without any further consideration with the condition that defendant has to settle the full balance purchase price.

(f) The joint venture company subsequently had allowed the said land to be transferred and registered in the defendant's name.

(ii) Both the plaintiffs and Choo Chiah Hua (now PW1) never at any time contributed towards the purchase price of the said land.

(iii) The said land was transferred to the defendant based on the agreement as stated in paragraph (e) and (f) above.

(iv) Plaintiffs are not entitled to any share of the profits which was obtained through the sale of the said land by the defendant to Padurusan Sdn Bhd.

(v) The plaintiffs' claim is weak, baseless and that the plaintiff has no cause of action against the defendant.

(vi) The plaintiffs' claim should be dismissed with costs.

[3] The plaintiffs' only witness is PW1. The defendant is DW1 and his witness is one Dato' David Wong (DW2), a lawyer.

[4] Based on the pleadings, the evidence both oral and documentary produced by both parties and the submission which has raised several matters, the decision of this court will be based on:-

(1) The Issues To Be Tried as agreed by both parties (IUB) (Enclosure 39) .

(i) Sama ada hartanah dikenali sebagai CT 4574 Lot 842 Mukim Triang, daerah Temerloh telah dijual oleh Syarikat Pembangunan Pesertaan Setia Sdn Bhd kepada Defendan pada dan atas terma-terma dan syarat-syarat sama sebagaimana terkandung di dalam Surat Perjanjian Jual Beli bertarikh 12.9.1991 yang dimasuki di antara Syarikat Pembangunan Pesertaan Setia Sdn Bhd dan Tan Guat Phiak dan Ong Wee Tock @ Ong Poey Chan; dan/atau

(ii) Sa

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