UCV4612 KL Sdn. Bhd. (KLSB) had purchased a land in Kemaman (the land) from PJ Sdn. Bhd. (PJSB): Civil procedure Assignment, MMU, Malaysia


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UCV4612 Civil procedure Assignment

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KL Sdn. Bhd. (KLSB) had purchased a land in Kemaman (the land) from PJ Sdn. Bhd. (PJSB) and operated a noodle-producing factory located on the land (the factory) in March 2014. Due to a failure by KLSB to comply with the terms of the sale and purchase agreement with PJSB, PJSB, through Messrs UA & Co commenced an action against KLSB claiming, inter alia, vacant possession of the land on the basis that the PJSB is entitled to the possession of the land.

However, in August 2014, PJSB was wound up. Messrs UA & Co obtained a sanction from the official receiver (OR) in June 2015 to continue representing PJSB. In August 2015, Messrs UA & Co obtained a judgment in default of defense against KLSB.

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In March 2018, through a notice of change of solicitors, Messrs MN & Co took over the conduct of the suit from Messrs UA & Co. Messrs MN & Co did not obtain a sanction from the official OR to continue handling the suit on behalf of PJSB. However, Messrs MN & Co acted on the instruction of PJSB’s director. Messrs MN & Co filed a writ of possession in April 2018 and enforced the said writ of possession in August 2018.

After getting the possession of the factory, Messrs MN & Co did not hand over the possession of the factory to PJSB then already managed by the OR, and Messrs MN & Co also failed to maintain the upkeep of the factory reasonably.
In September 2019, KLSB filed an application to set aside the judgment in default of defence and the writ of possession, as well as to strike out the suit.

The application was allowed by the Court in March 2020. KLSB regained possession of the factory in June 2020. After regaining possession of the factory, KLSB found that the whole factory was in shambles. The factory was damaged, machine and materials were missing, and whatever machines that were left could no longer function or be used, as a result of which KLSB has
suffered losses amounting to RM920,000. KLSB then filed a civil suit (XX-315-04/2021) dated 19th April 2021 against Messrs MN & Co claiming, inter alia, general damages and special damages of RM920,000 for professional negligence which caused KLSB to be chased out from the factory thereby denying them from operating the factory and as well as for loss of business prospect.

As solicitors for Messrs MN & Co, submit that KLSB has no reasonable cause of action. As solicitors for KLSB, submit a reply to the above submission(s).

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