JUDGMENT

Salleh Abas CJ (Malaya):

Felda is a statutory authority created by Land Development Ordinance 1956, whose object according to the long title is "to open and carry out projects for land development and settlement ..." in connection with its land Scheme at Sungai Retang, Jerantut, Pahang, it entered into a written agreement with a firm called Seng Kwee Company (referred to in this judgment as "the Contractor") on 26 March 1974 for the weeding and maintenance of the Scheme. The agreement contained a provision against sub-contracting in the following terms:

14. The Contractor shall not without the written consent of the Chairman first obtained assign this Contract or sub-contract all or any portion of the Works; provided that such consent shall not be unreasonably withheld to the prejudice of the Contractor. In the event of all or any portion of the Works being sub-contracted with the written consent of the Chairman the Contractor shall be solely and personally responsible for the due observance by such authorised sub-contractors of all the terms, stipulations and Conditions herein expressed.

Unknown to Felda, and without its permission, the work was subcontracted to one Hiew