VENKAL APPERALS PVT LTD v 1. ) CRY Respond Sdn. Bhd. 2. ) KRISHNA A/L SELOA RAJU 3. ) GIGAYEAR DIVERSIFIED SDN. BHD. 4. ) LBY EXIM TRADE SDN. BHD. 5. ) MUTIARA IDEAL CAPITAL BERHAD 6. ) HCK Global Trading Sdn. Bhd. 7. ) HCK Global Construction Sdn. Bhd.
Catchwords
Abstract The Plaintiff paid USD 7,079,400 for 1,026,000 boxes of nitrile gloves under a CIF contract but received containers with only empty boxes and debris. The First and Second Defendants orchestrated the fraud through falsified shipping documents with fraudulent weight and content declarations. Funds were rapidly dissipated through the Third to Seventh Defendants' companies within days of receipt, evidencing conspiracy. The court rejected the defendants' CIF contract defence, holding that fraud vitiates the entire transaction. Applying the principle "fraud unravels all," the court lifted the corporate veil to hold the Second Defendant personally liable and found the remaining defendants liable as participants who acted as "money mules." Judgment was entered for RM 28,902,540 against all defendants jointly and severally. Keywords Fraud – CIF Contract – Falsified Shipping Documents – Conspiracy – Corporate Veil – Money Laundering – Joint and Several Liability – Sale of Goods Act 1957
Judges (1)
Judgment
Read the full judgment on the official Malaysia Courts portal.
Read on eJudgmentSource: eJudgment (wa-22ncvc-214-03-2021)