JUDGMENT

Aliza Sulaiman J:

Introduction

[1] The determination of the dispute between the parties in this suit involved vastly technical terminologies and processes which began with the defendant's appointment by the plaintiff as the subcontractor for engineering works ('Works') for the project known as the "Construction of TDAE Norman 346 Production Plant' in Johor Bahru ('Project').

[2] In the course of the Project, differences arose between the parties as to the interpretation of certain terms and conditions of the contract, execution of the Works and entitlement to payments, which ultimately led to the termination of the contract by the Defendant.

[3] This led the plaintiff to come to this Court seeking declaratory and monetary reliefs in the form of a declaration that the termination by the defendant is unlawful and for the refunds of monies paid as well as for damages.

[4] The defendant responded by making a claim of its own against the plaintiff for sums of money which were purportedly outstanding for original works and additional works which had been carried out and completed by the defendant.

[5] After having considered the pleadings, oral and documentary evidence, written submissions and oral clarifications by the learned counsels representing the plaintiff and the defendant, I delivered my decision as follows:

(a) the plaintiff's claims against the defendant was dismissed in its entirety;

(b) the defendant's counterclaim against the plaintiff as stated in paras 30.1, 30.2 and 30.3 of the Defendant's Defence and Counterclaim dated 6 January 2021 ('DCC') was allowed, namely the sum of:

(i) USD90,000.00 (equivalent to RM424,170.00) being the balance outstanding payment under the 3rd Milestone Claim;

(ii) USD8,000.00 (equivalent to RM37,704.00) being the total outstanding payment under the Addendum; and

(iii) USD49,448.00 (equivalent to RM233,048.42) being the total outstanding payment for the Variation Claim,

whereby the amounts in USD were to be converted to Ringgit Malaysia (RM) based on the exchange rate of 4.713 on 14 June 2024 (date of judgment);

(c) the defendant's counterclaim against the plaintiff as stated in paras 30.4 dan 30.5 of the DCC, namely for the sum of USD140,000.00 being the total outstanding payment for the 4th Milestone and USD140,000.00 being the total outstanding payment for the 5th Milestone, was dismissed;

(d) interest at the rate of 5% per annum over the amounts stated in subparagraphs 5(b)(i) - (iii) above, calculated from 6 January 2021 until full settlement; and

(e) costs of RM70,000.00 to be paid by the plaintiff to the defendant, subject to allocatur fees.

[6] Dissatisfied, the plaintiff is pursuing its appeal to the Court of Appeal. At the same time, the defendant is appealing against part of my decision where its counterclaim for the outstanding payments for the 4th Milestone and 5th Milestone was dismissed.

[7] These are my full grounds for the decision.

Statement Of Agreed Facts

[8] Prior to the trial, the facts as agreed by the parties are as set out below.

[9] The Plaintiff is a private limited company incorporated in Malaysia with a registered address at Suit 5.11 & 5.12, 5th Floor, Menara TJB, No 9, Jalan Syed Mohd Mufti, 80000 Johor Bahru, Johor and a business address at Lot PLO 686, Jalan Platinum 1, Zon 12B, Kawasan Perindustrian Pasir Gudang, 81700 Pasir Gudang, Johor Bahru.

[10] The Plaintiff is involved in manufacturing, engineering and the assembly of process skid packages, pressure vessels and piping.

[11] The Defendant is also a private limited company incorporated in Malaysia with a registered address at 568-8-44, Kompleks Mutiara, Bt. 32, Jalan Ipoh, Kuala Lumpur, 51200 Kuala Lumpur and a business address at Unit 3A-02, Block A, Kelana Square, No 17, Jalan SS7/25, Kelana Jaya, 47301 Petaling Jaya, Selangor.

[12] The Defendant is in the business of providing consultancy services and installation work for plant engineering in related plastic and rubber industries.

[13] By way of a Letter of A