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2026 MarsdenLR 1764

HIGH COURT MALAYA JOHOR BAHRU
NORADURA HAMZAH, JC
SOCAR MOBILITY MALAYSIA SDN BHD – Appellant
Versus
GOBALAN ARUMUGAM & ORS – Respondent
[Civil Appeal No: JA-12B-25-04/2025]



Petitioner Advocates:Nan Muhammad Ridhwan Rosnan,Muhammad Hibri Nazim,Saif Aslam Lokman,Mohamad Danial Mohd Firdaus (pupil-in-chambers) ,Respondent Advocate: Sera,Teo Han Ley

A commercial vehicle provider owes a non-delegable duty of care to passengers regarding vehicle maintenance. Liability is established through the doctrine of res ipsa loquitur, and an adverse inference is appropriate when a party suppresses evidence by disposing of a vehicle before necessary inspections are conducted.

Headnote:(A) Civil Law (Amendment) Act 1956 - Section 8 - Evidence Act 1950 - Section 114(g) - Rules of Court 2012 - Order 8 rule 55 - Road traffic accident - Liability of vehicle owner - Direct duty of care to passengers - Doctrine of res ipsa loquitur - Adversorial inference regarding evidence disposal - Compensation for loss of actual earnings and loss of earning capacity. (Paras 9, 38-46, 48-52).

(B) Appeal - Appellate intervention - An appellate court should not interfere with the findings of the trial court unless there is a clear error of law, wrong premise of fact, or failure of judicial reasoning. (Paras 18, 57).

(C) Tort of Negligence - Duty of care - A commercial provider of vehicles owes a direct, non-delegable duty of care to passengers to ensure vehicle roadworthiness, which cannot be extinguished by private contractual terms between the provider and the user. (Paras 48-51).

(D) Evidence - Interested witnesses - The testimony of related parties is not inadmissible; it must be assessed based on consistency and corroboration with objective physical evidence. (Paras 36).

Facts of the case:
An action was brought following a fatal road accident involving a rented vehicle, where passengers suffered injury or death allegedly due to brake failure. The primary issues involved apportioning liability between the driver and the owner, the applicability of evidentiary presumptions, and the calculation of quantum for loss of earnings and earning capacity for a permanently injured passenger.

Findings of Court:
The court found the vehicle owner primarily liable for failing to ensure the braking system was roadworthy. An adverse inference was drawn against the owner for disposing of the evidence prematurely. The court held that pre-trial loss of earnings is recoverable despite the accident occurring during a restricted travel period and that future loss of earning capacity must be calculated based on a realistic assessment of physical limitations and employment prospects.

Issues: The main issues were the cause of the accident, the validity of the adverse inference against the owner, the scope of the duty of care to third-party passengers, and the proper assessment of quantum for permanent injury involving potential illegal-work allegations.

Ratio Decidendi: Liability is established where an owner fails to maintain a vehicle, and the doctrine of res ipsa loquitur shifts the burden of proof to the owner. A failure to retain evidence during an investigation permits an adverse inference. Passengers are owed a direct duty of care, and quantum for loss of earning capacity is justified where there is a real risk of future labour market disadvantage due to permanent disability.

Result: Appellant's liability appeal dismissed; Cross-appeal allowed in part, increasing the quantum of damages for loss of actual earnings and loss of earning capacity. 90/10 apportionment of liability affirmed.

Table of Content
1. overview of procedural history and factual background regarding the motor accident claim. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. consolidated arguments from the appellant and respondents regarding liability and quantum components. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24)
3. procedural competence and admissibility of a cross-appeal involving quantum issues. (Para 26 , 27 , 28 , 29)
4. assessment of evidence for mechanical brake failure as the proximate cause. (Para 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37)
5. application of res ipsa loquitur to vehicle maintenance and owner liability. (Para 38 , 39 , 40 , 41)
6. adverse inference under s 114(g) regarding the disposal of material evidence. (Para 42 , 43 , 44 , 45 , 46)
7. direct, non-delegable duty of care owed by car-sharing operators to passengers. (Para 47 , 48 , 49 , 50 , 51 , 52)
8. requirement of specific knowledge for the defense of volenti non fit injuria. (Para 53 , 54 , 55 , 56)
9. apportionment of liability based on relative blameworthiness and contributory conduct. (Para 59 , 60 , 61 , 62 , 63 , 64 , 65)
10. lawfulness of earnings and recoverability of pre-trial loss of income. (Para 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73 , 74 , 75)
11. assessment of damages for loss of earning capacity based on permanent physical disability. (Para 76 , 77 , 78 , 79 , 80 , 81 , 82 , 83 , 84 , 85 , 86 , 87)
12. formal court order regarding liability, quantum adjustments, and costs. (Para 88)

JUDGMENT

Noradura Hamzah JC:

Introduction

[1] This is Appellant ("the 2nd Defendant"), appeal against the decision of the Johor Bahru Sessions Court in Suit No: JA-A53KJ-358-06/2023 delivered on 27 March 2025 by the learned Sessions Court Judge ("SCJ"). The written grounds of judgment were subsequently released on 24 August 2025.

[2] Before this Court are two matters:

(a) the Appellant's appeal on liability; and

(b) the Respondents' cross-appeal on both the apportionment of liability and certain heads of quantum.

I shall deal with each in turn.

[3] Parties filed in their written submissions together with a bundle of authorities and solely rely on it.

Background Facts

[4] The essential facts, which are largely undisputed, are as follows.

[5] On 21 June 2020, at approximately 7.15pm, a Perodua Myvi bearing registration No VCN 5537 ("the Car") was involved in a road traffic accident near the intersection of Jalan Gaya 11, Johor Bahru. The Car was registered in the name of the Appellant, a car-sharing platform operator, and had been rented by the 1st Defendant, Saravanan A/L Balakrishnan ("the Driver"), through the SOCAR mobile application for the period of 1.00pm to 9.00pm that day.

[6] The Car was carrying three persons at the material time: the Driver, the deceased Pavithra Deiwi A/P Gobalan ("the Deceased"), and Vekneswaran A/L Balakrishnan ("P5" or the "3rd Respondent"), both of whom were passengers. As the Car approached the intersection of Jalan Gaya 11, the Driver attempted to brake in order to turn right. According to the testimony of both the Driver and SP3, the brake pedal was non-responsive - it felt "kosong" (empty) and "keras" (hard) when pressed. The Driver also attempted to engage the handbrake, but this too failed to arrest the vehicle's movement. The car crashed into the road shoulder and collided with a signboard. The Deceased was conveyed to Sultan Ismail Hospital, Johor Bahru, where she subsequently succumbed to her injuries.

[7] P5 suffered serious injuries including an L3 compression fracture of the lumbar spine, rib fractures and other associated injuries. The Driver had been driving the Car for approximately 7 hours and had covered some 131 kilometres before the accident occurred.

[8] The 1st Respondent, Gobalan A/L Arumugam, is the father of the Deceased. The 2nd Respondent, Aanathavali A/P Subramaniam, is the mother. They commenced the suit below in their personal capacities. The Driver was named as the 1st Defendant but failed to enter appea


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