TECT HUAT DEVELOPMENT SDN BHD v 1. ) GOH CHENG HUAT 2. ) GOH CHENG HUAY 3. ) GOH CHING CHAI 4. ) GOH CHING ENG 5. ) GOH CHING SEONG

b-02ncvcw-352-03-2024 Court of Appeal (Mahkamah Rayuan) 4 May 2025 • B-02(NCvC)(W)-352-03/2024 • 16 min read
6 cases cited (0 SG, 6 foreign)

Catchwords

Breach of contract - Unlawful termination of the Joint Venture Agreement dated 24.03.2014 and Supplementary Agreement dated 13.09.2018 - The central issue is whether there was a valid extension of time of 30 months and this turns on whether D4 had “ostensible” authority to sign the SA which was signed and sent to the Plaintiff via WhatsApp on 29 November 2018. The SA was given to D4 at the meeting on 13 September 2018. It is clear from the evidence that D4 did take it back and discussed the issue of extension with his siblings (the other co-owners) and when he was asked to sign and return the SA, he did so via WhatsApp. D4 also encashed the Plaintiff’s cheque for RM10,000.00, which D4 claimed was a “commission”. We also note that during cross-examination, D4 was not very forthright about the payment of RM10,000.00. It is imperative to note that the sum of RM10,000.00 was not even part of the Plaintiff’s pleaded case. - the Plaintiff’s claim was dismissed in toto. There was nothing in the Statement of Claim by way of a plea based on “quantum meruit” or “unjust enrichment” in order for the Court to exercise its discretion to assess damages under these heads - Appeal 353 and the appeal is allowed and the High Court Order dated 29 January 2024, to the extent where it ordered the Defendants to pay RM421,113.25 to the Plaintiff and upon such payment the 25 individual titles are to be released to the Defendants, is hereby set aside. A Consequential Order that the sum of RM421,113.25 with all interest accrued thereon, presently held by the Defendants solicitors Messrs. P. Paramjothy & Co. be forthwith released to the Defendants. All 25 individuals titles i.e. for HS(M) 22601 to HS(M)22626, PT 44606 to PT44630, Mukim Tanjung Dua Belas, Daerah Kuala Langat held by Messrs. Nordin Torji & Partners as stakeholder, be released forthwith to the Defendants solicitors, Messrs. P. Paramjothy & Co.

Practice Areas

Judges (3)

Counsel (9)

Parties (6)

Case Significance

TECT HUAT DEVELOPMENT SDN BHD v 1. ) GOH CHENG HUAT 2. ) GOH CHENG HUAY 3. ) ... is a Court of Appeal (Mahkamah Rayuan) decision dated May 4, 2025 (citation: b-02ncvcw-352-03-2024). <p>Tect Huat Development, a property developer, challenged the landowners' termination of a joint venture agreement for residential and commercial development in Kuala Langat, claiming one co-owner had granted an extension of time via WhatsApp. The Court of Appeal dismissed the developer's appeal, finding that the co-owner lacked ostensible authority to bind all five landowners. The landowners' cross-appeal was allowed, setting aside a RM421,113.25 payment order and ordering release of all 25 in The panel comprised Ahmad Kamal bin Md. Shahid, Mohamed Zaini bin Mazlan and S. Nantha Balan a/l E.s. Moorthy, with S. Nantha Balan a/l E.s. Moorthy delivering the judgment.

Summary

Tect Huat Development, a property developer, challenged the landowners' termination of a joint venture agreement for residential and commercial development in Kuala Langat, claiming one co-owner had granted an extension of time via WhatsApp. The Court of Appeal dismissed the developer's appeal, finding that the co-owner lacked ostensible authority to bind all five landowners. The landowners' cross-appeal was allowed, setting aside a RM421,113.25 payment order and ordering release of all 25 individual land titles to them.

What was the outcome of TECT HUAT DEVELOPMENT SDN BHD v 1. ) GOH CHENG HUAT 2. ) GOH CHENG HUAY 3. ) ...?

<p>Tect Huat Development, a property developer, challenged the landowners' termination of a joint venture agreement for residential and commercial dev...

Cases Cited (6)

MY (6)
[1996] 3 MLJ 94 [2006] 1 MLJ 617 [2009] MLJU 1039 [2010] 1 CLJ 665 [2010] 2 AMR 590 [2016] 10 CLJ 112