Abdul Malik Ishak JCA (delivering judgment of the court):

INTRODUCTION

[1]This was an appeal against the decision of the High Court in dismissing the appellant’s claim and entering judgment on the first respondent’s counterclaim after a full trial.

[2]The appellant’s claim before the High Court was for the rescission of a settlement agreement on the grounds of conspiracy, fraud and for breach of contract.

[3]The first respondent’s counterclaim centred on the settlement agreement where the appellant agreed to pay the first respondent the sum of RM11,498,788.12. After the appellant had made the first payment of RM2,500,000, the appellant defaulted in making the subsequent instalment and pursuant to the settlement agreement, the appellant was liable to pay the first respondent the remaining balance sum of RM8,998,788.12.

THE RELEVANT FACTS

[4]This is a factually based appeal and we will now narrate the events that follow. The appellant is the developer of a housing project in Bukit Cerakah, Shah Alam. The first respondent, on the other hand, is an earthworks contractor.

[5]Now, the first respondent was appointed as the main earthworks contractor for the development in Phase 3A and Phase 3B.

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