IN THE HIGH COURT AT KUALA LUMPUR

IN THE FEDERAL TERRITORY OF MALAYSIA

[CIVIL SUIT NO.: WA-22NCC-637-12/2020]

BETWEEN

SARENS (MALAYSIA) SDN BHD

(Company No.: 200901040157 / 883303-V)

... PLAINTIFF

AND

1. CAUSEWAY IRON WORKS SDN BHD

(Company No.: 200201034012 / 601677-D)

2. LIM CHING SENG

(NRIC No.: 820605-14-6031)

3. JEGATHISVARAN MATHEVAN

(NRIC No.: 870614-43-5279)

... DEFENDANTS

[IN THE ORIGINAL ACTION]

BETWEEN

CAUSEWAY IRON WORKS SDN BHD

(Company No.: 200201034012 / 601677-D)

... PLAINTIFF

AND

1. SARENS (MALAYSIA) SDN BHD

(Company No.: 200901040157 / 883303-V)

2. DHARMENDRA KUMAR VARSHNEY

3. HAIKAL QARDAWI WAN ABD HALIM

4. JEGATHISVARAN MATHEVAN

(NRIC No.: 870614-43-5279)

... DEFENDANTS

[IN THE COUNTERCLAIM]

GROUNDS OF JUDGMENT

INTRODUCTION

[1] Before the court is a commercial dispute concerning crane rental services allegedly provided by the plaintiff to the first defendant in connection with a construction project. The plaintiff claims substantial sums for crane hire based on work orders purportedly issued by the first defendant through its former employee. The first and second defendants, the second defendant being a director of the first defendant, deny liability, asserting that the work orders in question were forgeries created without the first defendant's knowledge or authority, and that the first defendant never engaged the plaintiff' services nor received any benefit from the alleged crane rental. The first defendant filed a counterclaim seeking declarations that the work orders are void and of no effect, along with damages for conspiracy and negligence allegedly committed by the plaintiff in reliance upon documents the the first and second defendants contend were known or ought to have been known to be suspicious.

[2] The central issues for determination revolve around the authenticity of the disputed work orders, whether the first defendant's former employee possessed actual or apparent authority to bind the first defendant to such contracts, the application of principles governing document authentication and the burden of proof in allegations of forgery, and the extent to which the first defendant may be held liable for unauthorised acts allegedly committed by its employee. The court must also consider questions of quantum, including whether the plaintiff has adequately proved its claimed losses, and whether the evidence supports the plaintiff' claim for payment and allegations of fraudulent trading and conspiracy against the second defendant, or alternatively the first defendant's counterclaim allegations of negligence against the plaintiff. These grounds of judgment address each of these issues in turn, examining the evidence adduced at trial, the credibility of witnesses, and the applicable legal principles.

BACKGROUND FACTS

[3] The Plaintiff, Sarens (Malaysia) Sdn Bhd ("Sarens"), is a company involved in the business of heavy lifting and crane rental services. It is part of an international group with over 60 years of experience in the heavy lifting industry.

[4] The 1st Defendant, Causeway Iron Works Sdn Bhd ("Causeway"), is a company specialising in steel fabrication and structural works. The 2nd Defendant, Lim Ching Seng, also known as "Benny Lim" ("Benny Lim"), is a director of Causeway. The 3rd Defendant, Jegathisvaran a/l Mathevan, also known as "Joshua" or "Jegan" ("Jegan"), was employed by Causeway from 1.4.2017 as an engineer.

The Project

[5] In or around July 2019, Samsung C&T (KL) Sdn Bhd ("Samsung") was awarded a contract by Arah Moden Sdn Bhd ("Arah Modern"), a wholly-owned subsidiary of KLCC (Holdings) Sdn Bhd, for a project described as "The Proposed Construction and Completion of Substructure, Retail Podium, Gallery and Associated Work for Mixed Development on Lot 166 (Lot L), Lot 165 (Lot L1) and Lot 164 (Lot M), Kuala Lumpur City Centre, for Arah Moden Sdn Bhd (Contract No: VMT00952019)" ("the Project). The contract sum awarded to Samsung was approximately RM742,000,000.00.

(Note: Sarens defines the Project as "the KLCC Podium