JUDGMENT

Zulkefli Makinudin JCA:

Introduction

[1] This is an appeal by the defendant against the decision of the learned judge of the High Court in allowing the first and the second plaintiffs' claims on the issue of liability against the defendant. The first plaintiff's claim against the defendant is for breach of contract. The second plaintiff's claim against the defendant is for damages for wrongful inducement and procurement of breach of contract. Having allowed the claims of the first and second plaintiffs with costs, the learned trial judge directed the senior assistant registrar to proceed to assess damages.

Background

[2] The relevant background facts of the case are as follows:

(1) The second plaintiff contended that it had entered into a contract with Malaysian Airlines System ("MAS") for the Gas Reticulation System Works ("GRSW") for the Kuala Lumpur International Airport. The second plaintiff also contended that they had sub-contracted the construction of the Gas Metering Station ("GMS") which formed part of the GRSW to the first plaintiff.

(2) Sometime in June 1997, the second plaintiff approached the defendant in order to sub-contract the construction of the GMS to th