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2015 MarsdenLR 2243

COURT OF APPEAL PUTRAJAYA
MMC OIL & GAS ENGINEERING SDN BHD – Appellant
Versus
TAN BOCK KWEE & SONS SDN BHD – Respondent


Judgement Key Points

The grounds of appeal are based on the assertion that the lower court erred in its interpretation and application of the principles concerning contractual liability and privity of contract. The appellant argues that the decision failed to recognize the existence of a contractual or legal obligation extending liability to MMCOG, despite the absence of direct contractual relations. It is contended that the evidence demonstrating the involvement of MMCOG in the overall project or consortium should have been sufficient to establish some form of legal responsibility or obligation. Furthermore, the appellant asserts that the court's reliance solely on the formal contractual documents overlooked the broader context of the parties' conduct and the internal communications which could imply an obligation or responsibility on MMCOG's part. The appeal also challenges the court's conclusion that liability is confined strictly to the contractual parties, arguing that this interpretation neglects the possibility of implied or indirect obligations that may arise from the conduct of the parties or the nature of the contractual arrangement. The appellant seeks to have the decision reconsidered on the grounds that the evidence and circumstances suggest a broader scope of liability beyond the formal contractual privity.


Table of Content
1. the issue of contractual liability between mmcog and the plaintiff revolves around the nature of the contractual agreements. (Para 1 , 2 , 3 , 4 , 5)
2. clarification of parties involved in the contractual dispute and proceedings. (Para 19 , 20 , 21 , 22)

[1] This appeal is concerned with a claim by a sub-contractor, namely the respondent, who was the plaintiff in the court below ('plaintiff'), against the appellant who was the 1st defendant in the court below ('MMCOG'). There is no direct relationship between the plaintiff and MMCOG in the form of a contract or otherwise. Their nexus, as it were, arises from MMCOG having entered into a consortium agreement with the 2nd defendant, a company known as Warga Hikmat Kejuruteraan Sdn Bhd ('Warga Hikmat') on 7 February 2007. The 1st and 2nd defendants had entered into this consortium agreement in order to carry out a project involving the engineering, procurement, construction and commissioning of crude storage tanks for Malaysian Refining Company Sdn Bhd (who was the 4th defendant in the court below1). Although they entered into this consortium agreement, no entity in law subsisted between MMCOG and the 2nd defendant. T

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