JUDGMENT

David Wong Dak Wah J:

Proceeding:

The plaintiff's claim against the 1st, 2nd and 3rd defendant is for the sum of RM1,519,980.00 being loss of preliminary expenses and loss of profits which otherwise the plaintiff could have earned should he be allowed to exercise his right under a subcontract to implement a project known as 'Rancangan Tebatan Banjir Bandaran Sabah Sg Tabanak, Lahad Datu'. Judgments in default of appearance against the 2nd and 3rd defendant had been obtained. As for the 1st defendant, his defense is that the subcontracts are ineffective.

Background facts:

The 1st defendant had applied for and was awarded the tender for the Lahad Datu project on 11.8.2006. On 26.8.2006 the 1st defendant gave a Power of Attorney to the 2nd Defendant (1st PA), one of its term is to appoint a subcontractor on behalf of the 1st defendant to implement the Lahad Datu project and sign all documents on behalf of the 1st defendant. Pursuant to that power of appointment, the 2nd defendant on 12.9.2006 appointed the plaintiff as the sub-contractor of the 1st defendant to implement the Lahad Datu project.

Sensing that the 2nd defendant may be in financial problem, the 1st defendant on 21.12.2