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2020 MarsdenLR 31

HIGH COURT MALAYA KUALA LUMPUR
CJ CENTURY TECHNOLOGY SDN BHD – Appellant
Versus
AXISJAYA SDN BHD & ANOR – Respondent
[Suit No: WA-22NCC-271-07/2020]



Petitioner Advocates:Brian Foong,Muhammad Hiqmar ,Respondent Advocate: Datuk Selva Kumar,Chow Hoi Meng

Summary judgment may be granted when a defendant fails to raise triable issues against a claim, affirming the plaintiff's entitlement to recover dues.

Headnote:(A) Order 14 of the Rules of 2012; Contracts Act 1950 – The Plaintiff applied for summary judgment against the Defendants for unpaid amounts under supply agreements. The court affirmed the criteria for summary judgment, emphasizing that the defendant must show a triable issue. The court found no triable issues as the Defendants failed to substantiate their claims of service failure, non-compliance with contract terms, and the alleged premature nature of the Plaintiff's claims. (Paras 15, 16, 24-25, 27-34, 41-48, 56-76)

Facts of the case:

The Plaintiff supplied goods as per purchase order, while the 1st Defendant claimed various issues including unsatisfactory services and the validity of settlements regarding the guaranteed payments. (Paras 5-12)

Findings of Court:

The court found the claims are not defendable and highlighted the lack of any substantial evidence to support Defendants' assertions. The Plaintiff is entitled to recover RM2,621,823.91. (Paras 23-25, 34, 76)

Issues

: The main issues discussed were whether satisfactory services were rendered and the appropriateness of the Defendant's claims regarding payments and settlements. (Paras 24-34, 41-48)

Ratio Decidendi:

The determination revealed no demonstrable or triable defenses presented by the Defendants against the claims made, leading to the conclusion that summary judgment was justified. (Paras 15, 24-25, 76)

Result:

Summary judgment was granted for the Plaintiff with costs awarded. (Para 76)

JUDGMENT

Aliza Sulaiman J:

[1] The application made by the Plaintiff in encl 8 is for summary judgment pursuant to O 14 r 1(1) of the Rules of 2012 .

Background

[2] The Plaintiff, a private limited company incorporated in Malaysia is a wholly owned subsidiary of CJ Century Logistics Holdings Berhad and is in the business of procurement logistics services and trading of electronical equipment.

[3] The Defendants are private limited companies incorporated in Malaysia and are subsidiaries of DBH Holdings Sdn Bhd (Company No.: 1113800-M).

[4] The 1st Defendant had placed orders with the Plaintiff for the supply & delivery of Daikin Air Conditioning Systems including Testing & Commissioning for VRV & Split Units ("the goods") and the Plaintiff had supplied the goods to the 1st Defendant in accordance with the 1st Defendant's various purchase orders ("1st Defendant's Purchase Orders") as follows:

[5] The 2nd Defendant vide 2 Corporate Guarantees dated 5 April 2018 and 8 August 2018, agreed, undertook and guaranteed the payment on demand of all monies due to the Plaintiff from the 1st Defendant arising from or in connection with the supply of the goods to the 1st Defendant, limited to the sum of RM4,099,733.69.

[6] As at 6 August 2019, there was an alleged sum of RM3,041,823.91 owing to the Plaintiff by the 1st Defendant as follows:

[7] By letter of demand dated 9 August 2019 ("the 1st LOD"), the Plaintiff through its solicitors, Messrs Chooi & Company + Cheang & Ariff demanded from the 1st Defendant the outstanding amount of RM3,041,823.91 as appearing in the Plaintiff's Statement of Account dated 6 August 2019 attached to the 1st LOD (exhibits TFL-10 and 9).

[8] After the 1st LOD, the 1st Defendant made several partial payments to the Plaintiff as follows:

(a) RM300,000.00 on 30 September 2019 via Maybank Cheque No.: 214563;

(b) RM30,000.00 on 20.12.219 via Maybank Cheque No.: 191766;

(c) RM30,000.00 on 10 January 2020 via Maybank Cheque No.: 192696;

(d) RM30,000.00 on 6 March 2020 via Maybank Cheque No.: 041255; and

(e) RM30,000.00 on 21 May 2020 via Maybank Cheque No.: 191996.

[9] As at 22 June 2020, after payment of the above sums, a sum of RM2,621,823.91is claimed to be still due and owing, particulars of which are set out in the statement of account at exhibit TFL-12, the delivery orders and outstanding invoices for the goods are at exhibit TFL-13.

[10] Exhibit TFL-14 details the interest charged for late payment.

[11] By a letter of demand dated 11.6.20, ("the 2nd LOD"), the Plaintiff through its solicitors, Messrs. Chooi & Company + Cheang & Ariff demanded from the 2nd Defendant as guarantor, the outstanding amount of RM2,621,823.91 to be paid within 7 days from the date of the said letter. No payment was received.

[12] Hence this suit filed by the Plaintiff for the sum of RM2,621,823.91 together with interest and cost.

The Defendants' Case

[13] In resisting summary judgment, the Defendants' contentions in essence are:

(i) On 26 August 2019, the Plaintiff and the 1st Defendant had agreed and entered into a settlement agreement ('1st Settlement Agreement') to settle the outstanding sum on a twelve (12) months' instalment basis via various post-dated cheques;

(ii) On 14 May 2020, the Plaintiff and the 1st Defendant had agreed and entered into a 2nd Settlement Agreement. Pursuant to the terms of the 2nd Settlement Agreement dated 14 May 2020, the outstanding sums were agreed to be paid by way of sixteen (16) monthly instalments;

(iii) There are five (5) triable issues which warrant the dismissal of the Plaintiff's application for summary judgment as follows:

(a) whether the Plaintiff has failed to render satisfactory services and fail to comply with the terms and conditions of agreement between the Plaintiff and 1st Defendant;

(b) whether the Plaintiff had failed to comply with the supply and delivery of the said Goods within the time stipulated, the specifications and safety requirements under the agreement, and performing tasks in a prompt manner;

(c


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