JUDGMENT

Ong Chee Kwan J:

Introduction

[1] This judgment deals with a tragic but all too human tale where a party, having suffered a genuine wrong, chose to vent their grievance not against the true perpetrator but against an innocent party caught in the crossfire. The facts reveal a misdirection of blame, motivated perhaps by convenience, or perhaps by frustration, or perhaps by a misapprehension of the law. This has resulted in unwarranted harm to one who bore no responsibility for the original wrong.

[2] The Court is thus called upon not only to untangle the legal claims brought before it but also to reaffirm a fundamental principle of justice, namely, that liability must be grounded in fault or responsibility, not emotion or misplaced retribution or self-help. Where wrong has been done, redress must follow, but it must be sought from the right quarter and in accordance with the law.

Background

[3] The 2nd plaintiff, Fathin Syazwani bt Mohamad Zakri ("Fathin") is the sole proprietor of the 1st plaintiff ("Wana Gold"), trading in gold jewellery and accessories at a shop unit at B2-21-3, Space U8 mall, Persiaran Pasak Bumi, Bukit Jelutong, Shah Alam, Selangor ("Wana Gold Premises").

[4] The 3rd defendant, Dato' Mohd Rozi bin Ibrahim (DW4) ("Dato' Rozi"), is the sole proprietor of the 2nd defendant, Qalam Gold Jewellery ("Qalam Gold"). The 1st defendant, Qalam Gold Jewellery (M) Sdn Bhd ("Qalam Gold SB") is a company wholly owned by Dato' Rozi.

[5] Sometime in early January 2023, the Defendants had intended to purchase a large amount of gold for the opening of their gold shop. Towards this end, a meeting was held sometime on 10 January 2023, where Fathin (PW1) and her husband, Muhammad Amirul Syafiq bin Mohammad Tajudin (PW2) ("Amirul"), both representing Wana Gold, attended together with one Safiah bt Khalid (DW1), Raja Mohd Norak bin Raja Kadir ("Raja") and Dato' Rozi representing the defendants. They were later joined by Ahmad Rashdan bin Ahmad Kamal (PW3) ("Rashdan"), who represented one Zuhal Distributor Enterprise ("Zuhal Distributor") and Harry Goldsmiths ("the 10 January 2023 Meeting"). It is not disputed that Zuhal Distributor and Harry Goldsmiths were owned by one Dato' Suhairi bin Nordin ("Dato' Suhairi").

[6] Arising from the 10 January 2023 Meeting, an agreement was reached between the defendants and Zuhal Distributor where the defendants agreed to purchase 5 kilograms of gold at the price of RM1,235,000.00 ("the Gold SPA").

[7] There is, however, a dispute as to whether the plaintiffs were involved in the Gold SPA. The plaintiffs contended that they had merely introduced Rashdan of Zuhal Distributor to the defendants, as the defendants were not prepared to purchase the 5 kilograms of gold from the plaintiffs at the prevailing market price. The defendants, however, contended that the plaintiffs were parties to the Gold SPA and accordingly obliged to perform the same together with Zuhal Distributor.

[8] Pursuant to the Gold SPA, it is not disputed that by 15 January 2023, the defendants had duly transferred to Zuhal Distributor the entire sum of RM1,235,000.00.

[9] On 16 January 2023 or 19 January 2023 (the actual date is unclear), Rashdan, Fathin and Amirul had attended Dato' Rozi's office and handed over about 2,513.58 grams of gold to the defendants. According to the plaintiffs, out of the 2,513.58 grams, 382.70 grams were in fact gold belonging to the plaintiffs ("the 382.70 grams of Gold"). The plaintiffs claimed that Rashdan had approached them sometime on 16 January 2023 to advance to the defendants the 382.70 grams of Gold because Zuhal Distributor was unable to make delivery of sufficient quantity of gold under the Gold SPA at the time. The plaintiffs were informed that the defendants needed sufficient quantity of gold to be delivered for the opening of the Qalam Gold business. It would be embarrassing if there were insufficient gold jewellery on display at the opening. With the intention to assist, the plaintiffs a