1. ) PEMBINAAN LERCAST SDN. BHD 2. ) LERCAST ALDEWAY SDN. BHD. v CHEK SAM BINTI SALLEH

p-02ncvcw-1311-08-2024 Court of Appeal (Mahkamah Rayuan) 12 January 2026 • P-02(NCvC)(W)-1311-08/2024 • 40 min read
16 cases cited (0 SG, 16 foreign)

Catchwords

This appeal concerned the termination of a joint venture for the development of land encumbered by squatters. The High Court held that the developer’s prolonged delay constituted a fundamental breach justifying termination. On appeal, the Court of Appeal allowed the appeal, finding that no repudiatory breach had been established and that the landowner’s unilateral termination was wrongful, having regard to the Supplementary Agreement requiring mutual termination. The delays were contributed to by both parties. Nonetheless, due to the complete breakdown of the parties’ relationship, the Court exercised its powers under s 69(4) of the Courts of Judicature Act 1964 to terminate all agreements.

Practice Areas

This appeal concerned the termination of a joint venture for the development of land encumbered by squatters. The High Court held that the developer’s prolonged delay constituted a fundamental breach justifying termination. On appeal, the Court of Appeal allowed the appeal, finding that no repudiatory breach had been established and that the landowner’s unilateral termination was wrongful, having regard to the Supplementary Agreement requiring mutual termination. The delays were contributed to by both parties. Nonetheless, due to the complete breakdown of the parties’ relationship, the Court exercised its powers under s 69(4) of the Courts of Judicature Act 1964 to terminate all agreements.

Judges (3)

Alwi bin Abdul Wahab Coram Lim Chong Fong Delivered Supang Lian Coram

Counsel (5)

Shahidah Hashimah & Co. Firm Ahmad Syateer Bin Izzat Counsel Respondent Izzat Bin Hj. Othman Counsel Respondent Noor Hashimah Binti Hamzah Counsel Respondent Shahidah Binti Nailul Morad Counsel Respondent

Parties (3)

LERCAST ALDEWAY Sdn Bhd Appellant PEMBINAAN LERCAST Sdn Bhd Appellant Chek Sam binti Salleh Respondent

Case Significance

1. ) PEMBINAAN LERCAST SDN. BHD 2. ) LERCAST ALDEWAY SDN. BHD. v CHEK SAM BIN... is a Court of Appeal (Mahkamah Rayuan) decision dated January 12, 2026 (citation: p-02ncvcw-1311-08-2024). <p>This appeal concerned the termination of a joint venture agreement for developing land occupied by squatters in Penang. The Court of Appeal found no repudiatory breach by the developer but exercised its powers under s.69(4) Courts of Judicature Act 1964 to terminate all agreements due to the complete breakdown of the parties' relationship, ordering the return of the original land title and refundable deposit with each party bearing their own costs.</p> The panel comprised Alwi bin Abdul Wahab, Lim Chong Fong and Supang Lian, with Lim Chong Fong delivering the judgment. Counsel appearing: Ahmad Syateer Bin Izzat (counsel for respondent), Izzat Bin Hj. Othman (counsel for respondent), Noor Hashimah Binti Hamzah (counsel for respondent), Shahidah Binti Nailul Morad (counsel for respondent).

Summary

This appeal concerned the termination of a joint venture agreement for developing land occupied by squatters in Penang. The Court of Appeal found no repudiatory breach by the developer but exercised its powers under s.69(4) Courts of Judicature Act 1964 to terminate all agreements due to the complete breakdown of the parties' relationship, ordering the return of the original land title and refundable deposit with each party bearing their own costs.

What was the outcome of 1. ) PEMBINAAN LERCAST SDN. BHD 2. ) LERCAST ALDEWAY SDN. BHD. v CHEK SAM BIN...?

<p>This appeal concerned the termination of a joint venture agreement for developing land occupied by squatters in Penang. The Court of Appeal found n...

Statutes Cited

Contracts Act 1950 (Cap 136)
s 40 s 56(1)
Courts of Judicature Act 1964 (Cap 91)

Cases Cited (16)

UK (2)
[1893] AC 22 [2004] EWCA Civ 967
MY (14)
[1941] MLJ 1 [1966] 1 MLJ 257 [1974] 1 MLJ 110 [1979] 2 MLJ 229 [1980] 1 MLJ 308 [1984] 2 MLJ 165 [1992] 3 CLJ 1535 [1997] 2 CLJ 153 [2004] 4 CLJ 309 [2013] 2 AMR 325 [2013] 2 CLJ 615 [2013] 2 MLJ 149 [2014] 1 MLJ 80 [2020] 10 CLJ 1