Jakel Trading Sdn Bhd v Toko Hudaya

Appellant(s): Jakel Trading Sdn Bhd

Respondent(s): Toko Hudaya

• YA Datuk S. Nantha Balan A/L E.S. Moorthy
• YA Dato' Paduka Azman Bin Abdullah
• YA Dato' Ahmad Kamal Bin Md. Shahid

• The plaintiff and defendant, both involved in the textile and clothing business, entered into a Joint Venture Agreement (JVA) and Partnership Agreement in 2013 for several government projects.
• The plaintiff initiated a suit alleging the defendant breached the agreements by failing to make full payments for services rendered across various projects.
• The defendant filed a counterclaim for sums allegedly owed by the plaintiff; the High Court allowed the plaintiff's claim (subject to a procedural issue) and dismissed the defendant's counterclaim.

• Whether the High Court erred in allowing the plaintiff's claim for amounts exceeding those originally pleaded, given the lack of a formal order for amendment and non-compliance with procedural rules.
• Whether the High Court correctly applied contractual interpretation principles, the parol evidence rule, and adverse inferences in determining the defendant's liability for various claims under the JVA.
• Whether the High Court erred in dismissing the defendant's counterclaim, particularly regarding the admissibility and weight of evidence presented.

• The Court of Appeal held that the High Court erred procedurally by awarding sums beyond the plaintiff's pleaded claim, as the oral application to amend was not formally perfected, causing the amendment order to lapse under Order 20 Rule 9 of the Rules of Court 2012.
• The Court affirmed the High Court's findings on the defendant's liability for breaches of the JVA (e.g., non-payment of agreed rates, concealment of fabric source, and additional costs/penalties), but reduced the award for one project to the originally pleaded amount.
• The Court allowed the defendant's counterclaim, finding that the plaintiff had admitted to the debt and that the High Court had misdirected itself on the admissibility of the defendant's accounting evidence under Section 73A of the Evidence Act 1950.