w-02ncvcw-184-01-2021 — NEWLAKE DEVELOPMENT SDN BHD v 1. ) ZENITH DELIGHT SDN BHD (D1) 2. ) KUMAR JASPAL QUAH & AISHAH (D2) 3. ) How Chee Hong (Steven) (D3) (Amber Kiew Sieh Pei) 4. ) Thian Mung Ching (D4)

Catchwords

Multiple causes of action fraud, conspiracy to defraud, fraudulent misrepresentation, constructive trust or breach of trust, breach of professional duty of care and implied retainer - this appeal concerns the sale & purchase of a land which never took place - despite paying RM9 million to a company which was said to have finalized the sale & purchase of the subject land from the actual land owners, the prospective purchaser i.e. the Plaintiff, walked away with nothing but losses which lead to the filing of suit - High Court dismissed the Plaintiff's claim - No Negligence, No Duty of Care - i. Wrong application of the parole evidence rule - failure in appreciating the contemporaneous documents - blatant failure to look at the money trail - Whether there was a total failure of consideration by the Respondent which disentitles them to forfeit the RM9 million plus paid by the Plaintiff to D1 via D2 - Whether the Defendants have committed fraud and/or fraudulent misrepresentation on the Plaintiff - SPA was premised on fraud and fraudulent misrepresentation, it is voidable and liable to be rescinded. The monies paid by the Plaintiff under the terms of the SPA should be returned to the Plaintiff. In the premise, the appeal is allowed.

Practice Areas

Multiple causes of action fraud, conspiracy to defraud, fraudulent misrepresentation, constructive trust or breach of trust, breach of professional duty of care and implied retainer

Judges (3)

Azizah binti Haji Nawawi Coram Azizul Azmi bin Adnan Coram Mohd Firuz bin Jaffril Delivered

Counsel (11)

HL Wong Soh & Co. Firm Nekoo Firm Shermal Firm Abraham Au Tian Hui Counsel Appellant Dato' Dr Gurdial Singh Nijar Counsel Appellant Eng Kar Wei Counsel Respondent Lee Kian Yuan Counsel Respondent Lee Shao Wei Counsel Appellant Nur Syahmina binti Zainal Abidin Counsel Respondent Wong Hin Loong Counsel Appellant Wong Hok Mun Counsel Respondent

Parties (5)

NEWLAKE DEVELOPMENT Sdn Bhd Appellant ZENITH DELIGHT Sdn Bhd Respondent How Chee Hong (amber Kiew Sieh Pei) Respondent Kumar Jaspal Quah & Aishah Respondent Thian Mung Ching Respondent

Summary

Newlake Development paid RM9 million for the purchase of land through Zenith Delight via a law firm, but the sale never materialised. The High Court dismissed the claim, but the Court of Appeal reversed, finding fraud and fraudulent misrepresentation by the defendants, including a total failure of consideration. The SPA was held voidable and the monies paid were ordered returned, with costs of RM200,000 against each set of respondents.

What was the outcome of NEWLAKE DEVELOPMENT SDN BHD v 1. ) ZENITH DELIGHT SDN BHD (D1) 2. ) KUMAR JAS...?

<p>Newlake Development paid RM9 million for the purchase of land through Zenith Delight via a law firm, but the sale never materialised. The High Cour...

Statutes Cited

Contracts Act 1950 (Cap 136)

Courts of Judicature Act 1964

s 69(4)

Evidence Act 1950 (Cap 56)

Cases Cited (15)

UK (1)

[1969] 2 All ER 119

MY (13)

[1995] 1 MLJ 457 [1995] 2 MLJ 851 [2003] 3 MLJ 460 [2006] 5 MLJ 359 [2009] 6 CLJ 430 [2014] 4 MLJ 64 [2015] 5 MLJ 1 [2016] 8 CLJ 293 [2018] 12 MLJ 49 [2020] MLJU 28 [2021] 1 MLJ 750 [2021] 2 CLJ 579 [2024] 2 CLJ 665

IN (1)

AIR 1967 SC 1395