1. ) SAPPHIRE PARADE SDN. BHD. 2. ) UMS BINA SDN. BHD. 3. ) MAJU INDAH SDN. BHD. 4. ) RENTAS KEMUNCAK SDN. BHD. v 1. ) AMALAN PROJEK SDN. BHD. 2. ) REJAB BIN ABU HASSAN 3. ) JONATHAN VOO CHOON ZIE 4. ) TETUAN ARFIZI & CO 5. ) KOOKY MALAYSIA SDN. BHD 6. ) CHONG CHEE WAI 7. ) OOI KEAN YONG 8. ) ADRAIN LEE YANG MING 9. ) BONAFIDE DESIGN & CONSTRUCTION SDN. BHD 10. ) HO WAI TONG 11. ) LEE PEI CHUAN

wa-22ncc-679-09-2023 High Court (Mahkamah Tinggi) 29 October 2025 • WA-22NCC-679-09/2023

Catchwords

Fraud vs. Simple Breach of Contract – The high evidentiary threshold required to prove fraud and conspiracy compared to the lower threshold for a simple breach of a Memorandum of Agreement and the subsequent failure of consideration. Fraudulent Misrepresentation – Allegations that the Defendants "hoodwinked" investors into a non-existent government infrastructure project – Conspiracy to Defraud – The claim that multiple parties acted in concert to secure and release commitment fees for unrelated purposes. Lifting the Corporate Veil – The pursuit of personal liability against directors (2nd and 3rd Defendants) for using the company as an "engine of fraud." – Piercing the Corporate Veil in Infrastructure Scams – Judicial criteria for holding directors personally liable for the refund of "commitment fees" when a company is used to solicit funds for a project that has no record of submission to the relevant Government Ministries. Breach of Stakeholder Duty – The wrongful release of funds by a stakeholder without valid invoices or the fulfillment of conditions precedent – The Scope of Stakeholder Liability in Commercial Contracts – Whether a stakeholder (specifically a law firm) is liable for the "wrongful release" of deposits when they act on the instructions of one party without verifying the contractual validity of the supporting invoices/claims as required by an MOA. Adverse Inference (Section 114(g) Evidence Act) – The legal consequence of a defendant's failure to testify or produce material evidence – Evidentiary Weight of Pleaded Documents Not Produced at Trial – The court’s refusal to consider letters from the Prime Minister’s Office exhibited in a Statement of Defence but not formally produced as trial exhibits, and how this impacts the proof of a "genuine" project application – Takako Sakao Principle – The extent to which a court can presume a plaintiff's version of facts to be true when a defendant "studiously refrains" from giving evidence, and the distinction between a "weak case" and a "case to answer."

Judges (1)

Parties (15)

Judgment

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Source: eJudgment (wa-22ncc-679-09-2023)