JUDGMENT

Ravinthran Paramaguru JCA:

[1] The issue in this case is about entitlement to late payment interest on overdue invoices issued for goods sold and delivered. The High Court, after full trial, dismissed the claim of the plaintiff for late payment interest and hence this appeal. We shall refer to the parties as plaintiff and defendant.

Background Facts

[2] We shall first set out some of the salient background facts as summarised by the learned Judicial Commissioner. They were not seriously disputed by the parties. The plaintiff is a seller of fertiliser and a member of the Fertiliser Industry Association of Malaysia (FIAM). The defendant is a reseller. It purchased fertiliser for its trade with third parties which were secured through tenders. The parties had dealings with one another since 2016 and maintained a running account. Sometime in 2017, the parties agreed for the goods to be delivered directly to the customers of the defendant after the latter issued purchase orders.

[3] It is also not disputed that on all the plaintiff's invoices and delivery orders, the following term was printed.

"Interest of 12% per annum will be charged on overdue accounts until full settlement"

The d