Platinum Heights Sdn Bhd v Sun Mix Concrete

 1

 2

Malayan Law Journal Reports/1997/Volume 1/PLATINUM HI!HT" "#N $H# % "UN MI& '(N'RT "#N $H# ) *1997+ 1 MLJ ,-9 ) . Mar0 199 . paes *1997] 1 MLJ 409

PLATINUM HEIGHTS SDN BHD v SUN MIX CONCRETE SDN BHD HIGH COURT (KUALA LUMPUR) KAMALANATHAN RATNAM JC ORIGINATING SUMMONS NO D5!44071995 " M#$%& 199' Civil Procedure -- Injunction to restrain winding-up petition -- Ambiguous admission of debt -- Contract to supply goods between debtor and creditor -- Whether non-receipt of final account from third party would  justify non-payment of debt -- Withholding material facts by debtor -- Whether application for injunction should be dismissed  Civil Procedure -- Originating summons -- No cause of action or substantive issue -- Non-compliance with O  r !"#$ of the %ules of the &igh Court #'() -- Whether summons should be rejected -- %ules of the &igh Court #'() O  r !"#$ * O '+ r ! T0e pla3nt344 was awar5e5 6y M3%an ar ast "5n $05 8t0e ma3n ontrator: a ontrat 4or strutural onrete wor;s 4or a on5om3n3um proual3ty? >uant3ty an5 pr3es o4 t0e onrete suppl3e5 6 y t0e 5e4en5ant= Howe%er? a4ter se%eral %ar3at3ons an5 a5
1)

T0ere was a 5e6t 5ue an5 t0e 5e4en5ant was at l36erty to proee5 to 3ssue a w3n53n)up pet3t3on aa3nst t0e pla3nt344= T0ere was no 53spute as to t0e 5e6t s3ne alt0ou0 t0ere were ompla3nts ra3se5 6y t0e pla3nt344 3n respet to t0e >ual3ty an5 >uant3ty o4 t0e onrete suppl3e5? t0e 43nal sum was e%entually aree5 upon 6y #'' # ,. /)' at /#)   t0e pla3nt344 3tsel4 an5 t0e pla3nt344 0a5 ma5e a lear an5 unam63uous a5m3ss3on %35e e@0 ) t0at t0e sum o4 RM.19?2=B- was owe5 to t0e 5e4en5ant as at 1 July 199B= T0e pla3nt344 oul5 not rely on t0e 4at t0at t0e 5e4en5ant 0a5 ree3%e5 payment 4rom t0e ma3n ontrator an5 t0at t0ey 0a5 not as yet ree3%e5 t0e 43nal aount 4rom t0e ma3n ontrator to 5eny t0e 5e4en5ants la3m as t0e ontrat was purely an5 53retly 6etween t0e pla3nt344 an5 t0e 5e4en5ant= urt0er? 3n t0e present ase? t0e pla3nt344 0a5 not 6een 4ort0r30t 3n su6m3tt3n t0at

 

1)

t0ere was alrea5y a wr3t at3on 43le5 w0en learly t0at was not true= Also? t0ere was learly a mater3al non)53slosure on t0e part o4 t0e pla3nt344 w0en 3t w3t00el5 53slosure o4 e@0 )? w030 was 3ts own wr3tten a5m3ss3on t0at 3t owe5 t0e 5e4en5ant t0e sum o4 RM.19?2=B-= Hene? t0e or33nat3n summons was 53sm3sse5 w3t0 osts 8see pp ,1? ')) an5 ,17!))H:= T0e ontents o4 t0e or33nat3n summons 43le5 6y t0e pla3nt344 535 not 53slose a ause o4 at3on as re>u3re5 6y ( 7 r 81: o4 t0e Rules o4 t0e H30 'ourt 19.- 8t0e RH':= Ha5 t0e ourt rante5 t0e 3nuo o4 t0e part3es pen53n t0e 5eterm3nat3on o4 t0e su6stant3%e 3ssue= Howe%er? t0ere was no su6stant3%e 3ssue an5/or ause o4 at3on 4or t0e ourts 5eterm3nat3on= It woul5 0a%e 6een a proper ase 4or at3on to 6e ta;en pursuant to ( 92 r  o4 t0e RH' to re
B#&#+# M##,+-# +.//#$, Pla3nt34 536er3;an suatu ;ontra; untu; ;er
2)

2)

Ter5apatnya 0utan yan 0arus 5 36ayar 5an 5e4en5an 6e6as untu; terus meneluar;an pet3syen penulunan ter0a5ap pla3nt34= T3a5a pert3;a3an 6er0u6un 5enan 0utan 3tu se6a6 walaupun pla3nt34 tela0 mem6an;3t;an a5uan 6er;enaan 5enan mutu 5an
 ,

8FMT:= J3;a ma0;ama0 mem6er3;an 3nuo p30a;)p30a; sementara menunu penentuan 3su su6stant34= Calau 6aa3manapun? t3a5a se6aran 3su su6stant34 5an/atau ;ausa t3n5a;an untu; penentuan ole0 ma0;ama0= In3 merupa;an suatu ;es yan wa
L-+#-3 $6$$*  'ompan3es At 19B s 21. Rules o4 t0e H30 'ourt 19.- ( 7 r 282:? ( 7 r 81:? ( 92 r  2aran 2ingh "2aran 2ingh * Co$ 4or t0e pla3nt344= , %avichandar "achaman alchand * Associates$ 4or t0e 5e4en5ant= KAMALANATHAN RATNAM JC T03s was an or33nat3n summons 43le5 6y t0e pla3nt344 see;3n an or5er to pre%ent t0e 5e4en5ant 4rom 43l3n an5/or proee53n w3t0 a w3n53n)up pet3t3on aa3nst t0e pla3nt344 unt3l 4urt0er or5er an5 4or 5amaes to 6e assesse5 an5 4or osts= B#%2$.3* 6#%+ In support o4 t0e or33nat3n summons? one Tan Te3; Lye? a 53retor o4 t0e pla3nt344? a443rme5 an a4435a%3t on No%em6er 199B 8t0e a4435a%3t 3n support:= He e@0363te5 t0ereto a letter 4rom t0e 5e4en5ant 5ate5 22 No%em6er 199B w030 was a s 21. statutory not3e o4 5eman5 4or t0e sum o4 RM99?11,=B- 6e3n t0e pr3e o4 onrete sol5 an5 5el3%ere5 6y t0e 5e4en5ant to t0e pla3nt344 an5 4urt0er leal osts o4 RM1B-= T0e pla3nt344 5en3e5 ow3n t0e sa35 sum an5 re4erre5 to t0e 3nten5e5 w3n53n)up proee53ns as a t0reat aa3nst 3t= He 4urt0er onten5e5 t0at 3n t0e e%ent t0at t0e 5e4en5ant was not so restra3ne5? t0e pla3nt344s 6us3ness woul5 6e lose5 5own an5 a6out B- employees woul5 6e w3t0out ual3ty? >uant3ty an5 pr3es o4 t0e onrete suppl3e5 6y t0e 5e4en5ant= A perusal o4 e@0 T), 5ate5 , No%em6er 199, s0owe5 t0at 3t was a letter wr3tten 6y t0e pla3nt344 to t0e ma3n ontrator re4err3n to an allee5 3nrease 3n pr3e= Howe%er? 4ar 4rom 6e3n a protest? t0e letter 3n4orme5 t0e ma3n ontrator t0at 34 t0ere was an 3nrease 3n t0e pr3e 6y t0e 5e4en5ant? w030 0a5 purporte5ly 6een aree5 upon 6y t0e 5e%eloper? t0en onse>uent3ally t0e pla3nt344 woul5 0a%e to a5
 B

 ma3n ontrator to t0e pla3nt344 5ate5 21 Mar0 199B w0ere6y t0e ma3n ontrator note5 t0at t0e onrete 5el3%ery 5o;ets 4rom t0e 5e4en5ant 3n53ate5 a su6stant3al 5344erene 3n t0e %olume o4 onrete re>u3re5 4or a typ3al 4loor on $lo;s A an5 $ w0ere t0e same 4ormwor; was 6e3n use5 an5 t0at letter re>ueste5 t0e pla3nt344 to ontat t0e 5e4en5ant to 35ent34y w0ere t03s 53srepany ar3ses= T0ere was t0ere4ore no 53ret 6lame put on t0e 5e4en5ant= T0e pla3nt344 also onten5e5 t0at %35e e@0 T) t0e ma3n ontrator 0a5 53spute5 t0e amount= Howe%er? a perusal o4 e@0 T) learly s0ows t0at 4ar 4rom 53sput3n t0e amount? t0e ma3n ontrator 0a5 3n53ate5 t0at 3t was pursu3n t0e areement o4 all out stan53n %ar3at3ons w3t0 t0e 5e%eloper= It was t0en 4urt0er onten5e5 3n t0e a4435a%3t 3n support t0at a4ter t0at? all part3es 0a5 aree5 t0at t0e 5e4en5ant oul5 la3m 4or payment 4or t0e onrete 4rom t0e ma3n ontrator an5/or t0e 5e%eloper an5 t0at t0e letter e@0 T)7 was sel4)e@planatory= Howe%er? e@0 T)7 3s a letter 4rom t0e 5e%eloper to t0e pla3nt344 on43rm3n t0at 3t 0a5 aree5 to aut0or3Ge t0e ma3n ontrator to ma;e payments 53retly to t0e 5e4en5ant 4rom t0e 6alane o4 money 5ue 4rom t0e ma3n ontrator to t0e pla3nt344= Moneys were t0en pa35 53retly 4rom t0e ma3n ontrator to t0e 5e4en5ant as e%35ene5 6y t0e t0ree letters e@0363te5 as e@0 T). 5ate5 1, No%em6er 199B? 21 "eptem6er 199B an5 1. Auust 199B w0ere6y t0e sums o4 RM9?1-? RM2?9.9 an5 RMB1?27 respet3%ely were pa35 53retly to t0e 5e4en5ant 6ase5 on t0e pla3nt344s proress payment la3m 4or  t0at per3o5 3n respet o4 t0e3r outstan53n 6alane to t0e 5e4en5ant= T0e pla3nt344 t0en anne@e5 two 4urt0er letters mar;e5 as T)9 5ate5 2 July 199B an5 2, No%em6er 199B to 3ts a4435a%3t 3n support= T0e letter 5ate5 2 July 199B was 4rom t0e ma3n ontrator to t0e 5e4en5ant re3ster3n 3ts surpr3se t0at t0e pla3nt344 0a5 an o%er5ue aount w3t0 t0e 5e4en5ant an5 t0at 3t woul5 0a%e 6een 6etter 0a5 3t 6een 3n4orme5 at t0e 6e3nn3n o4 t0e sl3ppae an5 t0at 3t woul5 use 3ts 6 est en5ea%ours to try to et t0e pla3nt344 to reular3Ge 3ts aount w3t0 t0e 5e4en5ant= T0e letter 5ate5 2, No%em6er 199B was also 4rom t0e ma3n ontrator a55resse5 to t0e pla3nt344 an5 op3e5 to t0e 5 e4en5ant= T0e letter on43rme5 t0at t0e ma3n ontrator woul5 only ma;e t0e 43nal payment to t0e pla3nt344 a4ter t0e 43nal aount a reement 6etween t0e ma3n ontrator an5 t0e 5e%eloper an5 t0e 43nal aount areement 6etween t0e ma3n ontrator an5 t0e pla3nt344 0a5 6een rea0e5= As su0? t0e pla3nt344 was o4 t0e %3ew t0at t0e 5e4en5ant 0a5 no r30t to ma;e any la3ms aa3nst 3t or to 5eman5 payment 6e4ore t0e 43nal3Gat3on o4 t0e 43nal aount areements= In reply? t0e 5e4en5ants re53t ontrol manaer a443rme5 an a4435a%3t on 3ts 6e0al4= He a%erre5 t0at s3ne t0e pla3nt344 0a5 re4use5 to pay t0e sum 5ue? as a5m3tte5 6y 3t? t0e 5e4en5ant 3nten5e5 to proee5 w3t0 t0e w3n53n up proee53n w3t0out t0e nee5 to o6ta3n a ual3ty an5 >uant3ty were 6aseless as t0ese matters 0a5 6een reular3Ge5= T0e 5e4en5ant %35e e@0 )B 0a5 la3me5 4or a sum o4 RM.29?-19=B-= Howe%er? a4ter %ar3at3ons an5 a5uotat3on 5ate5 1 June 199, 8e@0 )1: w030 terms an5 on53t3ons an5 rates 0a5 6een aree5 upon 6y t0e pla3nt344= In response to ) a6o%e? t0e 5e4en5ant repl3e5 %35e 3ts letter 5ate5 2B (to6er 199B 8e@0 )7: as 4ollowsD (ur Re4D #$/"M'? P/7), #ateD 2B (to6er 199B Plat3num He30ts "5n $05 No 2? "ott Roa5? 1-B- Penan=

 

8AttnD Mr Tan Te3; Lye: #ear "3rs? ReD Aounts 8pr3n3pal 5e6ts o4 RM79B?2,,=B-:

e6 199B aount Mar 199B aount  Apr 199B aount May 199B aount June 199B aount July 199B aount

) ) ) ) ) )

RM1,?,.=B- 8$alane: RM217?-B,=-RM219?,,-=-RM1-,?92,=-RM 71?.=-RM .?.1-=--

urt0er to your letter 5ate5 - Auust 199B? please 6e a5%3se5 t0at we 0a%e reently ree3%e5 a 0e>ue o4 RM2?9.9 8TP$$ 0e>ue ,.-1: 6e3n 53ret payment 4rom M3%an ar ast "5n $05 to settle part o4 your e6ruary 199B outstan53n 5e6ts w3t0 us= T0e total outstan53n amount as at 1 July 199B 8a4ter 5e5ut3n t0e a6o%e payment o4 RM2?9.9: 3s per t0e 6rea;5own s0own a6o%e= Ce also reret to a5%3se t0at we 0a%e so 4ar ree3%e5 m3n3mum payments 83e RMB1?27 3n Auust 199B an5 RM2?9.9 on 2B "eptem6er 199B: only 4rom M3%an ar ast "5n $05 to settle part o4 your outstan53n 5e6ts w3t0 us= T0e aounts 0a%e turne5 %ery ol5 an5 we re>u3re your 3mme53ate payment to reular3Ge t0em aor53nly= T0an;s 4or your urent attent3on on t03s matter= ours 4a3t04ully "UN)MI& '(N'RT "#N $H# "5 R TIAN !IN 're53t 'ontrol Manaer  D 81: M3%an ar ast "5n $05 ) Mr L3m Lau0l3n 82: Mr '' Pan ) "unr3se $05 #'' # ,. /)' at /#3 

In response to t0e ontent3on t0at t0e 5e4en5ant 0a5 aree5 to ma;e 3ts la3m 53retly 4rom t0e ma3n ontrator? t0e 5e4en5ant 5en3e5 t03s a n5 3nstea5 re4erre5 to t0e pla3nt344s e@0 T)7 an5 also e@0 ), w0ere6y 3t was lear t0at 4ar 4rom t0e 5e4en5ant 0a%3n aree5 to ma;3n a la3m 53retly 4rom t0e ma3n ontrator? 3t was t0e pla3nt344 w0o 0a5 aree5 to aut0or3Ge t0e ma3n ontrator to ma;e payment 53retly to t0e 5e4en5ant 4rom t0e 6alane money 5ue 4rom t0e ma3n ontrator to t0e pla3nt344= T0e 5e4en5ant state5 t0at t0ou0 3t 0a5 ree3%e5 payments 53retly 4rom t0e ma3n ontrator? 3t 535 not ma;e any areement w3t0 any party to la3m t0e 6alane o4 3ts la3ms aa3nst t0e ma3n ontrator or to a6sol%e t0e pla3nt344 o4 3ts respons363l3ty to pay t0e 6alane outstan53n= @0363ts )2? B an5 7 are t0e %ar3ous 5eman5s ma5e to t0e pla3nt344 4or t0e lon o %er5ue aounts= T0e 5e4en5ant t0us onten5e5 t0at 6ase5 on t0e pla3nt344s own a5m3ss3on %35e e@0 ) t0at t0e 6alane outstan53n as at 1 July 199B was RM.19?2=B- a4ter 5e5ut3n t0e sums o4 RM2?9.9 pa35 on 2B "eptem6er 199B 8e@0 )7: an5 RM9?1- on 1, No%em6er 199 8e@0 T).: 6e3n sums ree3%e5 53retly 4rom t0e ma3n ontrator? t0ere was a 6alane sum o4 RM99?11, outstan53n= T03s was t0e e@at sum state5 3n t0e statutory not3e o4 5eman5= T0e pla3nt344 43le5 a 4urt0er a4435a%3t 3n reply 5ate5 , January 199 w0ere6y t0e same Tan Te3; Lye 5en3e5 a5m3tt3n ow3n t0e sum o4 RM.19?2=B- as state5 3n e@0 )B= He onten5e5 t0at t0e ma3n ontrator 0a5 >uest3one5 t0e >ual3ty an5 >uant3ty o4 t0e onrete an5 woul5 only pay 4or atual >uant3t3es 6ase5 on t0e pro
 7

a%erments o4 03s earl3er a4435a%3t 3n support= &&$ &$ 8#+ # * *. In 03s wr3tten su6m3ss3on? ounsel 4or t0e pla3nt344 su6m3tte5 t0at 03s appl3at3on was 4or an 3nual3ty an5 >uant3ty o4 t0e onrete suppl3e5= T0ere was a 4urt0er rel3ane on t0e allee5 pr3e 3nrease an5 0e su6m3tte5 t0at t0ese are 3ssues w030 ou0t to 6e tr3e5 3n a wr3t at3on= T0e 5e4en5ant 3n 3ts reply po3nte5 out t0at t0ere was no wr3t or any proee53ns 3n any ourt 3n respet o4 t03s matter e@ept 4or t0e present proee53ns= It was t0e 5e4en5ants ontent3on t0at t0e ontrat 0ere was 6etween t0e pla3nt344 an5 t0e 5e4en5ant an5 535 not 3n%ol%e t0e ma3n ontrator= T0ere was also no 53spute as to t0e 5e6t s3ne t0e pla3nt344 0a5 a5m3tte5 6y way o4 e@0 ) to ow3n t0e sum o4 RM.19?2=B- as at 1 July 199B an5 t03s was t0e outstan53n sum ow3n to t0e 5e4en5ant a4ter 5e5ut3n all t0e 53spute5 amounts= It was su6m3tte5 t0at t0e pla3nt344 3s now try3n to 3%e a 5344erent 3nterpretat3on to e@0 ) 6y stat3n t0at t0e a5m3ss3on was 6ase5 on t0e 5el3%ery 5o;ets= I 43n5 as a 4at t0at 6ase5 on t0e letters e@0363te5? t0e pla3nt344 was una6le to pay 3ts 5e6ts= I also 43n5 as a 4at t0at t0ere were ompla3nts ra3se5 rear53n t0e >ual3ty an5 >uant3ty o4 t0e onrete suppl3e5 6ut t0at a 43nal sum was e%entually aree5 upon 6y t0e pla3nt344s e@0 )= I 43n5 3t well esta6l3s0e5 t0at t0e pla3nt344 0a5 ma5e a lear an5 unam63uous a5m3ss3on 6y way o4 e@0 ) an5 t0at t0e pla3nt344 owe5 t0e 5e4en5ant t0e sum o4 RM.19?2=B- as at 1 July 199B= T0e su6m3ss3on 6y t0e pla3nt344 t0at s3ne 0e 0a5 not ree3%e5 any money 4rom t0e ma3n ontrator? 0e 3s una6le to pay t0e 5e4en5ant? 3s totally untena6le as t0e ontrat was purely an5 53retly 6etween t0e p la3nt344 an5 t0e 5e4en5ant= T0e 4urt0er ontent3on t0at s3ne 0e 0a5 not as yet ree3%e5 t0e 43nal aount 4rom t0e ma3n ontrator aa3n 3s o4 no onse>uene to t0e 5e4en5ant= I4 t0e ma3n ontrator 0a5 not pa35 03m? t0en 0e ou0t to proee5 to reo%er 03s
T0e or33nat3n summons 43le5 6y t0e pla3nt344 5esr36e5 t0e part3es as appl3ant an5 respon5ent 6ut 3t was >u3te lear 4rom ( 7 r 282: o4 t0e Rules o4 H30 'ourt 19.- 8t0e RH': t0atD T0e party ta;3n out an or33nat3n summons 8ot0er t0an an e5 parte summons: s0all 6e 5esr36e5 as a pla3nt344 an5 t0e ot0er part3es s0all 6e 5esr36e5 as 5e4en5ants=

I 0a5 t0ere4ore pursuant to t03s rule altere5 t0e 5esr3pt3on o4 t0e part3es=

 .

86: 'ontents o4 t0e or33nat3n summons

(r5er 7 r 81: o4 t0e RH' states as 4ollowsD #'' # ,. /)' at /#  81: %ery or33nat3n summons must 3nlu5e a statement o4 t0e >uest3ons on w030 t0e pla3nt344 see;s t0e 5eterm3nat3on or 53ret3on o4 t0e H30 'ourt or? as t0e ase may 6e? a on3se statement o4 t0e rel3e4 or reme5y la3me5 3n t0e proee53ns 6eun 6y t0e or33nat3n summons w3t0 su4433ent part3ulars to 35ent34y t0e ause or auses o4 at3on 3n respet o4 w030 t0e pla3nt344 la3ms t0at rel3e4 or reme5y=

Howe%er? t03s or33nat3n summons 43le5 6y t0e pla3nt344 535 not onta3n any su0 statement o4 >uest3ons 4or t0e ourts 5eterm3nat3on or 53ret3on nor was t0ere a on3se statement o4 t0e rel3e4 or reme5y la3me5 an5 ne3t0er was t0ere a statement w3t0 su4433ent part3ulars to 35ent34y t0e ause o r auses o4 at3on 3n respet o4 w030 3t w3s0es to la3m t0at rel3e4 or reme5y? 6ut merely onta3ne5 t0e prayers 3t w3s0e5 4or as 4ollowsD 8a: Penentan 53laran mem4a3l;an 5an/atau menerus;an pet3syen penulunan ter0a5ap pemo0on 03na per3nta0 lan
T0e a6o%e or33nat3n summons 5oes not 53slose a ause o4 at3on= T0ere 3s no su6stant3%e 3ssue 4or t0e ourts 5eterm3nat3on= Ha5 t0e ourt rante5 t0e 3nuo o4 t0e part3es pen53n t0e 5eterm3nat3on o4 t0e su6stant3%e 3ssue or ause o4 at3on= I4 3n5ee5 t0e 5e6t 3s 6e3n 53spute5 on su6stant3al roun5s? some e44ort ou0t to 6e ma5e to state 3t 3n more 5eta3l w3t0 su4433ent part3ulars= As 3t stoo5? t0ere appears to 6e no su6stant3%e ause o4 at3on= Apart 4rom t0e 3n
In onlus3on? s3ne t0e rel3e4 sou0t 3s an 3n
Reporte5 6y Ru5een '0ua