Court strikes out RM218 mln suit against Umno

The High Court struck out Elegant Advisory Sdn Bhd’s RM218 million suit against Umno over alleged non-payment for items the company claimed to have supplied during a general election.

Judicial Commissioner Anantham Kasinater, who made the decision in chambers, said the application was without basis and did not follow the Contracts Act 1950.

During the course of submissions, counsel for the plaintiff conceded that there was no written contract. Counsel was unable to highlight the terms of any oral contract.

The plaintiff, when required to provide particulars of the oral agreement to prove privity of contract, was unable to do so. In his 10-page written judgment, Anantham also said that the plaintiff’s claim was frivolous and vexatious.

In its writ of summons, Elegant Advisory said it was engaged in the supply of election merchandise, transportation and publications and that it had supplied Umno with these items for the 11th GE in 2004.

The company claimed that it had sent Umno invoices for a sum of RM218,013,475 and that the party has failed to pay up.

Anantham also said that Section 71 of the act was not founded on contract but embodied the equitable principle of restitution and unjust enrichment.

In our words, the section is applicable to relationship resembling those created by contract but not those based on contract.

The plaintiff would appeal against the decision.

Source: The Borneo Post dated September, 11, 2009.

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Hello Contractors,

Its high time Contractors know Contract Administration; administering contents of the terms and conditions of contract & managing the contracting parties relationship.( E.g Main Contractor & Subcontractors). Most Contractors ONLY ADMINISTER ACTIVITIES AND NOT CONTRACT. Additionally, Rights & Obligations, Roles & Responsibilities of each party are equally important of contract administration.

Let’s see what CA 1950 Section 71 says;

Obligation of person enjoying benefit of Non-Gratuitous Act

Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.

ILLUSTRATIONS

a) A, a tradesman, leaves goods at B’s house by mistake B treats the goods as his own. He is bound to pay A for them.

b) A saves B’s property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously.