JUDGMENT

Hasnah Mohammed Hashim JCA:

[1] This appeal by the appellant is against of the decision of the learned Judicial Commissioner who had dismissed the appellant's claim for unlawful termination and for the damages to be assessed. The High Court allowed the respondent's counterclaim of RM1,537,226.00 for losses and damages. After having heard and considered the submission of the respective counsel for the parties, we had allowed the appeal and set aside the decision of the High Court. We remitted the case before the same High Court Judge for assessment of damages. We now give our reasons.

[2] For the purpose of this judgment, the parties will be referred to as they were in the High Court.

Material Facts

[3] The defendant is the main contractor of a project described as "Cadangan Pembangunan Projek Pendidikan Bagi SMK Tandek 2, Kota Marudu, Sabah" ('the Project') awarded by the Ministry of Education (MOE) ('the Employer'). The contract sum for the Project is RM41,445,000.00 ('the Contract Sum'). The defendant appointed the plaintiff as its subcontractor on 28 July 2009. The expected completion date of the Project was on 25 May 2011. However, the completion date was extended to 27 Apr