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Malayan Law Journal Reports/2009/Volume 6/Lee Nyan Hon & Bros !n B"! # Metro $"arm !n B"! % &2009' 6 MLJ 1 % ( eptem)er 2009 26 pages &2009' 6 MLJ 1

Lee Nyan Hon & Bros Sdn Bhd v Metro Charm Sdn Bhd
COURT OF APPEAL (PUTRAJA A! LO" HOP B#N$% HEL#L#AH AN& AB&UL MAL#' #SHA' JJCA C#(#L APPEAL NO A)*+),-, OF +**. . Se/tem0er +**1 Landlord and Tenant -- Rent -- Non-payment of -- Trespass -- Landlord sealed off land and demolished buildings on it -- Whether remedy of self-help available to landlord when tenant breached tenancy agreement -- Whether tenant estopped from raising illegality when notice of termination based on failure to pay rental given -- Specific Relief Act 1 !" ss # $ % By way o* a tenan+y agreement !ate! , -e)ruary 2001 ./t"e agreement/01 Lee Nyan Hon & Bros !n B"! ./t"e !e*en!ant/0 "a! rente! out a p2e+e o* #a+ant lan! 2n Pera3 ./t"e lan!/0 to Metro $"arm !n B"! ./t"e pla2nt2**/0 *or a term o* t"ree years +ommen+2ng 1, 4e+em)er 2000 at a mont"ly rental o* RM51,006 7"e purpose o* t"e tenan+y was to set up an enterta2nment outlet1 upon t"e terms an! +on!2t2ons +onta2ne! 2n t"e agreement6 7"e +ru+2al terms o* t"e agreement were +ll ,6, an! ,69 o* t"e agreement6 8n!er +l ,6,1 t"e pla2nt2** as tenant agree! to +omply w2t" all statutes1 or!2nan+es or regulat2ons a**e+t2ng t"e use o* t"e lan! an! also agree! t"at t"e ere+t2on o* all stru+tures on t"e lan! woul! +omply w2t" t"e re9u2rements o* any aut"or2ty "a#2ng :ur2s!2+t2on on t"e lan!6 Pursuant to +l ,69 t"e pla2nt2** agree! not to use t"e lan! *or any unlaw*ul purpose6 7"erea*ter t"e pla2nt2** +onstru+te! a )u2l!2ng on t"e lan!1 to set up a /Bal2nese +on+ept +a* / )ut !2! not o)ta2n plann2ng appro#al *rom t"e 4ewan Ban!araya ;po" .4B;0 )e*ore t"e )u2l!2ng was +onstru+te!6 7"ere was also no enterta2nment l2+en+e 2ssue! to t"e pla2nt2** to run an! manage a +a* 2n t"e )u2l!2ng +onstru+te! )y t"e pla2nt2**6 <n 19 Mar+" 2001 t"e !e*en!ant term2nate! t"e tenan+y *or non%payment o* rental6 7"erea*ter t"e !e*en!ant as lan!lor! entere! 2nto t"e lan! w2t"out a +ourt or!er an! seale! 2t o**6 ;t t"en pro+ee!e! to !emol2s" all t"e )u2l!2ngs an! stru+tures on t"e lan! w2t" +ranes an! )ull!o=ers6 7"e pla2nt2** t"en +ommen+e! +2#2l pro+ee!2ngs aga2nst t"e !e*en!ant un!er t"e pe+2*2+ Rel2e* >+t 19,0 ./t"e >+t/06 7"e pla2nt2** +onten!e! t"at un!er t"e tenan+y agreement 2t was an /o++up2er/ o* t"e lan! as !e*2ne! 2n s (.50 o* t"e >+t1 an! t"at un!er s (.20 o* t"e >+t t"e r2g"t o* t"e lan!lor! to re+o#er possess2on o* tenante! property 2s to )e e?er+2se! only )y way o* a +ourt a+t2on6 7"us t"e pla2nt2** su)m2tte! t"at w"en t"e !e*en!ant *or+2)ly entere! t"e lan! an! !estroye! t"e pla2nt2**/s property w2t"out a +ourt or!er1 t"e pla2nt2** was ent2tle! to +la2m !amages *rom t"e !e*en!ant on t"e )as2s o* ss ( & 'L( 1 at ) an! @ o* t"e >+t6 7"e H2g" $ourt allowe! t"e pla2nt2**/s +la2m an! or!ere! t"e !e*en!ant to pay t"e pla2nt2** RM9AA122@6@A as !amages *or trespass )ut !2sm2sse! t"e pla2nt2**/s +la2m *or e?emplary an! aggra#ate! !amages6 7"2s was t"e !e*en!ant/s appeal aga2nst t"at !e+2s2on6 >t t"e same t2me t"e pla2nt2** "a! also +ross%appeale! aga2nst t"e !2sm2ssal o* 2ts +la2m *or e?emplary an! aggra#ate! !amages6 7"e !e*en!ant su)m2tte! t"at t"e pla2nt2** was 2n )rea+" o* 2ts +o#enants un!er t"e agreement 2n t"at 2t "a! not o)ta2ne! t"e appro#al o* t"e 4B; to ere+t t"e )u2l!2ng on t"e lan! an! 2t "a! *a2le! to o)ta2n l2+en+es *rom t"e aut"or2t2es *or t"e purpose o* +arry2ng on t"e enterta2nment outlet on t"e lan!6 >s su+" t"e !e*en!ant ma2nta2ne! t"at t"e pla2nt2** was )arre! *rom 2nst2tut2ng an a+t2on aga2nst t"e !e*en!ant6 7"e pla2nt2** argue! t"at t"e !e*en!ant/s not2+e o*

Page 5 term2nat2on was s2mply )ase! on t"e *a2lure to pay rental an! not"2ng turne! on t"e pla2nt2**/s *a2lure to o)ta2n t"e appro#al or l2+en+es an! t"at t"ere*ore t"e !e*en!ant was estoppe! *rom ra2s2ng t"e 2llegal2ty 2ssue6 He2d1 allow2ng t"e !e*en!ant/s appeal an! !2sm2ss2ng t"e pla2nt2**/s +ross%appeal w2t" +ostsB

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.per Lo3 Ho/ B4n5 JCA0 $lause (61.a0 o* t"e agreement1 w"2+" pro#2!es *or t"e !e*ault an! term2nat2on o* t"e agreement1 2s e?presse! 2n +lear an! unam)2guous wor!s6 8pon a true +onstru+t2on o* t"2s +lause t"ere was no !ou)t t"at t"e !e*en!ant "a! legally term2nate! t"e agreement )y not2+e 2n wr2t2ng an! t"at 2t was w2t"2n 2ts r2g"t to term2nate t"e agreement .see paras A0 & AA06 .per Lo3 Ho/ B4n5 JCA0 >lt"oug" s (.20 o* t"e >+t "a! pro#2!e! t"at t"e lan!lor! +an only re+o#er possess2on o* tenante! property )y +ourt a+t2on1 t"e t"2r! +on!2t2on o* t"2s se+t2on re9u2res t"e tenant to )e t"e /o++up2er/ w"o +ont2nues to rema2n 2n o++upat2on o* t"e property or part t"ereo*6 ;n t"e 2nstant appeal1 at t"e mater2al t2me1 t"e pla2nt2** "a! )een ser#e! w2t" a temporary stop%wor3 or!er )y t"e ;po" $2ty Hall an! was t"ere*ore not 2n o++upat2on o* t"e lan! or an /o++up2er/ un!er s (.20 o* t"e >+t6 -urt"er1 )e2ng 2n )rea+" o* +ll ,6, an! ,69 o* t"e agreement t"e pla2nt2** +oul! not )e law*ully 2n o++upat2on o* t"e lan!6 2n+e t"e s2tuat2on set out 2n s (.20 2s 2nappl2+a)le1 t"e pla2nt2** was pre+lu!e! *rom a#a2l2ng 2tsel* o* t"e reme!y o* re+o#er2ng possess2on o* t"e lan! un!er s @.106 7"e tr2al :u!ge "a! erre! 2n law 2n 2n#o32ng ss ( an! @ o* t"e >+t .see paras 51%5A06 .per Lo3 Ho/ B4n5 an! A0d62 Ma247 #sha7 JJCA0 7"e e#2!en+e "a! esta)l2s"e! t"at t"e pla2nt2** was 2n )rea+" o* t"e e?press +o#enants +onta2ne! 2n +ll ,6, an! ,69 o* t"e agreement6 2n+e t"e pla2nt2** was t"e party 2n )rea+" o* t"e law1 )y 2ts *a2lure to o)ta2n )u2l!2ng appro#al an! l2+en+es to +arry out enterta2nment )us2ness 2n t"e )u2l!2ng 2t & 'L( 1 at * +onstru+te!1 2t was pre+lu!e! *rom pursu2ng 2ts a+t2on aga2nst t"e !e*en!ant )y rely2ng on 2ts own 2llegal a+tsB e+ turpi causa non oriter actio6 No +ourt woul! en*or+e an 2llegal +ontra+t or allow 2tsel* to )e ma!e t"e 2nstrument o* en*or+2ng o)l2gat2ons ar2s2ng *rom an 2llegal transa+t2on1 e#en 2* t"e !e*en!ant "a! not plea!e! t"e 2llegal2ty .see paras 21%2A & 6(%6906 .per Lo3 Ho/ B4n5 an! A0d62 Ma247 #sha7 JJCA0 -or t"e pla2nt2** to re+o#er !amages *rom t"e !e*en!ant 2t must pro#e t"e !e*en!ant/s l2a)2l2ty1 )ut t"e pla2nt2** *a2le! to pro#e t"e !e*en!ant/s l2a)2l2ty an! t"at )e2ng t"e +ase1 t"e pla2nt2** was not ent2tle! to any !amages )e 2t e?emplary or aggra#ate! .see paras 56 & (@%@506 .per He2424ah JCA0 7"e pla2nt2** "a! *a2le! to *urn2s" any #al2! e?planat2on *or t"e *a2lure to o)ta2n #ar2ous appro#als *rom lo+al aut"or2t2es as re9u2re! un!er spe+2*2+ leg2slat2on6 "oul! t"e +ourt grant an or!er to susta2n t"e +la2ms 2nst2tute! )y t"e pla2nt2** 2t woul! tantamount to t"e +ourt en+ourag2ng or e#en g2#2ng +ountenan+e to t"e pla2nt2** to +on!u+t 2ts )us2nesses 2llegally or to ere+t stru+tures 2llegally 2n +ontra#ent2on o* laws6 7"at 2s +learly +ontrary to pu)l2+ pol2+y .see paras ,0%,106 .per A0d62 Ma247 #sha7 JCA0 7"ere was no proper e#aluat2on o* t"e e#2!en+e )y t"e H2g" $ourt 2n t"e present +ase t"ere)y warrant2ng appellate 2nter*eren+e 2n *a#our o* t"e !e*en!ant as t"e lan!lor! .see para 6A06 .per A0d62 Ma247 #sha7 JCA0 7"2s appeal +on+erne! t"e 2llegal per*orman+e o* a legal +ontra+t6 C2#en t"e spe+2*2+ an! a!m2tte! )rea+"es o* t"e pla2nt2** as t"e tenant1 t"e pla2nt2** was !2sent2tle! to see3 spe+2*2+ rel2e* un!er t"e pe+2*2+ Rel2e* >+t 19,0 .see para (,06

Page A Menerus2 per:an:2an sewa )ertar23" , -e)ruar2 2001 ./per:an:2an terse)ut/01 Lee Nyan Hon & Bros !n B"! ./!e*en!an/0 menyewa3an se)2!ang tana" 3osong !2 Pera3 ./tana" terse)ut/0 3epa!a Metro $"arm !n B"! ./pla2nt2*/0 )ag2 tempo" t2ga ta"un )ermula !ar2 1, 42sem)er 2000 pa!a sewa )ulanan se)anya3 RM51,006 7u:uan penyewaan terse)ut a!ala" untu3 men!2r23an se)ua" pusat "2)uran1 )er!asar3an terma !an syarat per:an:2an terse)ut6 7erma%terma pent2ng per:an:2an terse)ut a!ala" 3lausa ,6, !an ,696 42 )awa" 3lausa ,6,1 pla2nt2* se)aga2 penyewa )ersetu:u mematu"2 3esemua statut1 or!2nan atau peraturan )er3a2tan !engan penggunaan tana" !an :uga )ersetu:u )a"awa pem)2naan 3esemua stru3tur atas tana" terse)ut "arus menepat2 3eperluan% 3eperluan p2"a3 )er3uasa yang mempunya2 3uasa atas tana" terse)ut6 Ber23utan 3lausa ,69 pla2nt2* )ersetu:u t2!a3 mengguna3an & 'L( 1 at , tana" terse)ut untu3 tu:uan yang menyala"2 un!ang%un!ang6 Demu!2annya1 pla2nt2* men!2r23an se)ua" )angunan atas tana" terse)ut1 )ag2 se)ua" /Bal2nese +on+ept +a*e/ tetap2 t2!a3 men!apat 3e)enaran peran+angan !ar2pa!a 4ewan Ban!araya ;po" .4B;0 se)elum men!2r23an )angunan terse)ut6 Juga t2a!a lesen "2)uran yang !23eluar3an 3epa!a pla2nt2* untu3 men:alan !an mengen!al2 se)ua" 3a*e !2 )angunan yang !2)2na pla2nt2*6 Pa!a 19 Ma+ 2001 !e*en!an menamat3an sewaan terse)ut 3erana t2!a3 mem)ayar sewa6 Demu!2annya1 !e*en!an se)aga2 tuan tana"1 masu3 3e tana" terse)ut tanpa per2nta" ma"3ama" !an meny2ta tempat 2tu6 4e*en!an 3emu!2annya mero)o"3an )angunan !an stru3tur !2 atas tana" terse)ut mengguna3an 3ren !an :entola36 Pla2nt2* 3emu!2annya memula3an t2n!a3an s2#2l ter"a!ap !e*en!an !2 )awa" >3ta Rel2e* pes2*23 19,0 ./>3ta/06 Pla2nt2* meng"u:a" )a"awa !2 )awa" per:an:2an sewaan terse)ut1 pla2nt2* merupa3an /o++up2er/ tana" terse)ut sepert2 yang !2ta3r2*3an !alam s (.50 >3ta !an !2 )awa" s (.20 >3ta menyata3an )a"awa "a3 tuan tana" untu3 mengam)2l semula "artana" yang !2sewa3an "anya )ole" !2la3sana3an menerus2 t2n!a3an ma"3ama"6 Ma3a1 pla2nt2* menyata3an )a"awa apa)2la !e*en!an masu3 3e tana" terse)ut se+ara pa3sa !an memusna"3an "artanya tanpa per2nta" ma"3ama"1 pla2nt2* )er"a3 menuntut gant2 rug2 !ar2pa!a !e*en!an atas !asar ss ( !an @ >3ta6 Ma"3ama" 72ngg2 mem)enar3an tuntutan pla2nt2* !an memer2nta"3an !e*en!an mem)ayar pla2nt2* RM9AA122@6@A se)aga2 gant2 rug2 men+ero)o" tetap2 menola3 tuntutan pla2nt2* )ag2 gant2 rug2 tela!an !an tam)a"an6 ;n2 merupa3an rayuan !e*en!an ter"a!ap 3eputusan terse)ut6 Pa!a masa yang sama pla2nt2* :uga merayu )alas ter"a!ap penola3an tuntutannya atas gant2 rug2 tela!an !an tam)a"an6 4e*en!an menyata3an )a"awa pla2nt2* memung32r2 per:an:2an terse)ut apa)2la pla2nt2* gagal men!apat lesen !ar2pa!a p2"a3 )er3uasa untu3 men:alan3an pusat "2)uran !2 atas tana" terse)ut6 Ma3a1 !e*en!an menegas3an )a"awa pla2nt2* !2"alang mengam)2l t2n!a3an ter"a!ap !e*en!an6 Pla2nt2* meng"u:a" )a"awa not2s penamatan !e*en!an "anyala" )er!asar3an 3egagalan mem)ayar sewa !an )u3annya atas alasan 3egagalan pla2nt2* men!apat 3e)enaran atau lesen !an ole" 2tu !e*en!an !2estop !ar2pa!a mem)ang32t3an 2su 3epenyala"an un!ang%un!ang6 &4/6t6s7an1 mem)enar3an rayuan !e*en!an !an menola3 rayuan )alas pla2nt2* !engan 3osB

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.ole" Lo3 Ho/ B4n5 HMR0 Dlausa (61.a0 per:an:2an terse)ut yang memperuntu33an 3emung32ran !an penamatan per:an:2an terse)ut1 !2nyata3an !engan :elas !an nyata6 4alam penta*s2ran se)enar 3lausa 2n21 t2!a3 !2ragu2 )a"awa !e*en!an tela" menamat3an per:an:2an terse)ut se+ara sa" melalu2 not2s )ertul2s !an !e*en!an )er"a3 )er)uat !em232an .l2"at perenggan A0 & AA06 1 & 'L( 1 at ! .ole" Lo3 Ho/ B4n5 HMR0 Ealaupun s (.20 >3ta memperuntu33an )a"awa tuan tana" "anya )ole" mengam)2l semula "arta yang !2sewa3an melalu2 t2n!a3an ma"3ama"1 syarat 3et2ga se3syen 2n2 memerlu3an penyewa 2tu men:a!2 /o++up2er/ yang )erterusan men!2am2 "artana" terse)ut atau se)a"ag2an !ar2nya6 4alam rayuan 2n21 pa!a masa yang mater2al1 pla2nt2* tela" !2sera"3an per2nta" )er"ent2 3er:a sementara ole" Ma:l2s Per)an!aran ;po" !an ole" 2tu t2!a3 men!2am2 tana"

Page , terse)ut atau merupa3an /o++up2er/ !2 )awa" s (.20 >3ta6 elan:utnya1 !engan memung32r2 3lausa ,6, !an ,69 per:an:2an terse)ut pla2nt2* t2!a3 )ole" men!2am2 tana" terse)ut se+ara sa"6 Meman!ang3an s2tuas2 !2 )awa" s (.20 t2!a3 )ole" !2guna pa3a21 pla2nt2* !2"alang !ar2pa!a men!apat3an reme!2 mengam)2l semula tana" terse)ut !2 )awa" s @.106 Ha32m )2+ara 3"2la* !ar2 seg2 un!ang%un!ang !alam mengguna pa3a2 ss ( !an @ >3ta .l2"at perenggan 51%5A06 .ole" Lo3 Ho/ B4n5 !an A0d62 Ma247 #sha7 HHMR0 Deterangan menun:u33an )a"awa pla2nt2* memung32r2 3lausa ,6, !an ,69 per:an:2an terse)ut6 Meman!ang3an pla2nt2* yang melanggar un!ang%un!ang terse)ut1 !engan 3egagalannya men!apat3an 3e)enaran mem)2na !an lesen men:alan3an pern2agaan "2)uran !2 )angunan terse)ut1 pla2nt2* !2"alang menerus3an t2n!a3annya ter"a!ap !e*en!an !engan )ersan!ar3an pa!a t2n!a3annya sen!2r2 yang menyala"2 un!ang%un!angB e+ turpi causa non oriter actio6 72a!a ma"3ama" yang a3an menguat3uasa3an 3ontra3 yang menyala"2 un!ang%un!ang atau mem)enar3an ma"3ama" 2tu sen!2r2 men:a!2 alat menguat3uasa3an tanggung:awa) )er)ang32t !ar2pa!a transa3s2 yang sala" !2 s2s2 un!ang%un!ang1 walau !e*en!an t2!a3 mempl2! 3epenyala"an un!ang% un!ang terse)ut .l2"at perenggan 21%2A & 6(%6906 .ole" Lo3 Ho/ B4n5 !an A0d62 Ma247 #sha7 HHMR0 Bag2 pla2nt2* men!apat3an gant2 rug2 !ar2pa!a !e*en!an1 pla2nt2* "arus mem)u3t23an l2a)2l2t2 !e*en!an1 tetap2 pla2nt2* gagal mem)u3t23annya !an ole" 2tu1 pla2nt2* t2!a3 )er"a3 3e atas se)arang gant2 rug21 sama a!a tela!an atau tam)a"an .l2"at perenggan 56 & (@%@506 .ole" He2424ah JCA0 Pla2nt2** tela" gagal mem)er23an apa%apa pen:elasan yang sa" ter"a!ap 3egagalan untu3 men!apat3an )e)erapa 3elulusan !ar2pa!a p2"a3 )er3uasa tempatan sepert2 yang !2perlu3an !2 )awa" un!ang%un!ang spes2*236 J23a ma"3ama" mem)er23an per2nta" untu3 menge3al3an tuntutan yang !2mula3an ole" pla2nt2* 2a a3an )erma3su! )a"awa ma"3ama" menggala33an mala"an mem)er23an so3ongan 3epa!a pla2nt2* untu3 men:alan3an pern2agaannya se+ara menyala"2 un!ang%un!ang atau untu3 mem)2na stru3tur%stru3tur & 'L( 1 at & "aram yang )ertentangan !engan un!ang%un!ang6 ;n2 a!ala" :elas )er+angga" !engan pol2s2 awam .l2"at perenggan ,0%,106 .ole" A0d62 Ma247 #sha7 HMR0 72!a3 ter!apat pen2la2an sempurna ter"a!ap 3eterangan ole" Ma"3ama" 72ngg2 !alam 3es 2n2 !an ole" 2tu1 mewa:ar3an +ampur tangan !2 ma"3ama" rayuan )ag2 p2"a3 !e*en!an se)aga2 tuan tana" .l2"at perenggan 6A06 .ole" A0d62 Ma247 #sha7 HMR0 Rayuan 2n2 a!ala" )er3enaan perla3sanaan yang menyala"2 un!ang%un!ang )er3enaan 3ontra3 yang sa"6 Ber!asar3an 3emung32ran tertentu !an yang !2a3u2 ole" pla2nt2* se)aga2 penyewa1 pla2nt2* t2!a3 )er"a3 memo"on rel2e* spes2*23 !2 )awa" >3ta Rel2e* pes2*23 19,0 .l2"at perenggan (,06

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Notes -or +ases on non%payment o* rent1 see 9 'allal-s .igest .At" F!1 200, Re2ssue0 paras 1560% 15616 Cases re8erred to An Arbitration/ Re v 'ahmoud and 0spahani &1921' 2 DB (16 .re*!0 Archbolds 12reightage3 Ltd v S Spanglett Ltd 1Randall/ third party3 &1961' 1 >ll FR A1(1 $> .re*!0 4enma+ v Austin 'otor 5o Ltd &19,,' 1 >ll FR 5261 HL .re*!0 4radford 5ity 'etropolitan 5ouncil v Arora &1991' 2 GB ,0( .re*!0

Page 6 5hung 6hiaw 4an7 Ltd v 8otel Rasa Sayang Sdn 4hd $ Anor &1990' 1 MLJ 5,6 .re*!0 5lunis v 5amden $ 0slington 8ealth Authority &199@' GB 9(@1 $> .re*!0 .rane v 9vangelou $ :rs &19(@' 1 ELR A,, .re*!0 .r 8ar;it Singh v Suhaimi bin Samar $ Anor &199,' 2 >MR 19@@ .re*!0 9r 9ng 8oc7 $ Anor v New 6im 9ng 9tc &2000' 1 $LJ 2@9 .re*!0 <imstern 5orp 1'3 Sdn 4hd $ Anor v <lobal 0nsurance 5o Sdn 4hd &19@(' 1 MLJ 502 .re*!0 <reat Western Railway and 'idland Railway v 4ristol 5orporation .191@0 @( LJ $" A1A .re*!0 8ay or 4ourhill v =oung &19A5' >$ 921 HL .re*!0 8olman et al- v (ohnson/ alias Newland .1((,0 9@ FR 1120H 1 $owp 5A1 .re*!0 L Schuler A< v Wic7man 'achine Tool Sales Ltd &19(A' >$ 25,1 HL .re*!0 Leasing 5orporation Sdn 4hd v 0ndah Lestari Sdn 4hd &200(' ( MLJ ,06 .re*!0 'etro 5harm Sdn 4hd v Lee Nyan 8ong $ 4rothers Sdn 4hd $ Anor &200(' , MLJ 2(2 .re*!0 New >ealand Shipping 5o Ltd v Socit .es Ateliers 9t 5hantiers de 2rance &1919' >$ 11 HL .re*!0 Nur 0slam Worldwide 0ndustries Sdn 4hd v =ee 6o7 Sum &2001' ( $LJ A9A .re*!0 & 'L( 1 at # ?et 2ar 9astern 1'3 Sdn 4hd v Tay =oung 8uat $ :rs &1999' , MLJ ,,@ .*oll!0 Rasidin bin ?artor;o v 2rederic7 6iai &19(6' 2 MLJ 21A .re*!0 Renal Lin7 16L3 Sdn 4hd v .ato- .r 8arnam Singh &199(' 2 MLJ 5(5 .re*!0 Roo7es v 4arnard $ :rs &196A' >$ 11291 HL .re*!0 Sallows v <riffiths &2001' - R 1,1 $> .re*!0 Scott v 4rown/ .oering/ 'cNab $ 5o &1@92' 2 GB (2A .re*!0 S'9 Aerospace Sdn 4hd v ST9=R 'annlicher 1'3 Sdn 4hd &2006' 5 MLJ A62H &2006' , $LJ 121 .re*!0 Su Wee Lip @ ?hilip Su v 8a;i Lassim Abdul Rahman &2009' 1 MLJ ,@0 .re*!0 Toll 12<5T3 ?ty Ltd v Alphapharm ?ty Ltd $ :rs .200A0 219 $LR 16, .re*!0 Topps 5o 0nc/ The v 'ally (aya Sdn 4hd &199@' , MLJ (AA .re*!0 Le54s2at4on re8erred to $ompan2es >+t 196, s 12,.10 $ontra+ts >+t 19,0 ss 2A1 55 Nat2onal Lan! $o!e ss 2151 2211 2221 25,1 516 Roa! an! Ra2l 7ra**2+ >+t 1955 &8D's 1.10 pe+2*2+ Rel2e* >+t 19,0 ss (1 (.101 .201 .501 @1 @.10 A//ea2 8rom9 $2#2l u2t No 22%(6 o* 2001 .H2g" $ourt1 ;po"06 7"2s +ase superse!es t"e pre#2ous pu)l2+at2on o* t"e same 2n &2009' 6 MLJ 16 N 5handran 1?hilip 6oh/ 5han 6o7 6eong/ =ap 4oon 8au/ Leong 5heo7 6eng and Ran;an

Page ( 5handran with him3 1Leong $ Tan3 for the appellantA Bi;aya Segaran 1Lee Soon 'ing and .anial Rahman with him3 1'a+well/ 6enion/ 5owdy $ (ones3 for the respondentA Lo3 Ho/ B4n5 JCA APPEAL AN& CROSS)APPEAL :-; <n 21 May 200(1 t"e learne! :u!ge o* t"e ;po" H2g" $ourtB

1a)

1b)

allowe! t"e +la2m o* t"e respon!ent ./t"e pla2nt2**/0 an! or!ere! t"e appellant ./t"e !e*en!ant/0 to pay t"e pla2nt2** t"e sum o* RM9AA122@6@A1 as !amages *or trespass1 toget"er w2t" 2nterest at @Ipa *rom t"e !ate o* :u!gment to t"e !ate o* real2sat2on1 an! +osts1 )ut !2sm2sse! t"e pla2nt2**/s +la2m *or e?emplary an! aggra#ate! !amagesH an! !2sm2sse! w2t" +osts t"e !e*en!ant/s +ounter+la2m aga2nst t"e pla2nt2**6 & 'L( 1 at %

:+; 7"e !e*en!ant "as now appeale! aga2nst t"e !e+2s2on o* t"e H2g" $ourt g2#en 2n *a#our o* t"e pla2nt2**6 :<; <n t"e ot"er "an!1 t"e pla2nt2** "as *2le! a +ross%appeal aga2nst t"e !2sm2ssal o* t"e pla2nt2**/s +la2m *or e?emplary an! aggra#ate! !amages6 F#N&#N$ OF FACTS :=; 7"e narrat2#e o* t"e rele#ant *a+ts1 as *oun! )y t"e learne! :u!ge a*ter a *ull tr2al1 may )e un*ol!e! )elow6 :,; Pursuant to a tenan+y agreement !ate! , -e)ruary 2001 ./t"e agreement/0 t"e !e*en!ant as lan!lor! let to t"e pla2nt2**1 as tenant1 t"e #a+ant lan! "el! un!er H .40 D> @19A51 No P7 1620111 2n t"e mu32m o* Hulu D2nta1 !2str2+t o* D2nta1 Pera3 ./t"e lan!/0 *or a term o* t"ree years +ommen+2ng 1, 4e+em)er 2000 at a mont"ly rental o* RM51,001 w2t" an opt2on to renew *or a *urt"er per2o! o* two years6 7"e purpose o* t"e tenan+y was to set up an enterta2nment outlet1 upon t"e terms an! +on!2t2ons +onta2ne! 2n t"e agreement6 :>; <n 2 -e)ruary 20011 t"e pla2nt2** pa2! t"e !e*en!ant a sum o* RM(1000 )e2ng t"e rental *or two mont"s #2= 4e+em)er 2000 an! January 2001H an! a *urt"er sum o* RM211000 as se+ur2ty !epos2t6 :.; $lause ,6, o* t"e agreement +onta2ns a +o#enant t"at t"e pla2nt2** s"all +omply w2t" all statutes1 or!2nan+es or regulat2ons1 present or *uture1 a**e+t2ng or relat2ng to t"e use o* t"e lan!1 an! t"at t"e ere+t2on o* all stru+tures on t"e lan! s"all +omply w2t" t"e re9u2rements o* any aut"or2ty "a#2ng :ur2s!2+t2on o#er or 2n respe+t o* t"e lan! .a re*eren+e "ere2na*ter to a +lause 2s a re*eren+e to t"at +lause 2n t"e agreement06 :?; Pursuant to +l ,691 t"e pla2nt2** +o#enante!1 2nter al2a1 not to use t"e lan! *or any unlaw*ul purpose6 :1; 7"e !e*en!ant "a! on 2@ Mar+" 2001 ta3en possess2on o* t"e lan! an! !emol2s"e! t"e stru+tures w"2+" t"e pla2nt2** "a! +ause! to )e ere+te! t"ereon6 :-*; <t"er *a+ts w2ll appear un!er t"e rele#ant 2ssues *or !eterm2nat2on later 2n our :u!gment6 THE PLA#NT#FF@S CO(ENANTS

Page @ :--; 4e*en!ant/s learne! +ounsel 4atu3 N $"an!ran .ass2ste! )y & 'L( 1 at Mr P"2l2p Do"1 Mr $"an Do3 Leong1 Mr Jap Boon Hau1 Mr Leong $"eo3 Deng an! Mr Ran:an $"an!ran0 su)m2tte! *or t"e !e*en!ant t"at t"e pla2nt2** "as *a2le! to *ul*2l 2ts +o#enants 2n t"at t"e pla2nt2** "a! not o)ta2ne! t"e appro#al o* t"e rele#ant aut"or2ty to ere+t t"e stru+tures on t"e lan!H an! t"e l2+en+es *rom t"e aut"or2t2es *or t"e purpose o* +arry2ng on t"e enterta2nment outlet6 :-+; Mr V2:aya egaran .Mr Lee oon M2ng an! Mr 4an2al Ra"man w2t" "2m0 argue! t"at t"e pla2nt2**/s not2+e o* term2nat2on was s2mply )ase! on a *a2lure to pay rental1 an! not"2ng turne! on t"e pla2nt2**/s *a2lure to o)ta2n t"e appro#al or l2+en+es1 as a result o* w"2+" t"e !e*en!ant was estoppe! *rom ra2s2ng t"e 2llegal2ty 2ssue6 :-<; 7"e a)o#e +on*l2+t2ng su)m2ss2ons +all *or t"e !eterm2nat2on o* t"e *ollow2ng 9uest2onB
8pon a true +onstru+t2on o* +l ,6, an! +l ,69 o* t"e tenan+y agreement1 2s t"e pla2nt2** 2n )rea+" o* t"e +o#enants perta2n2ng to +ompl2an+e w2t" all statutes1 or!2nan+es or regulat2ons1 present an! *uture1 a**e+t2ng or relat2ng to t"e use o* t"e lan!1 an! not to use t"e lan! *or any unlaw*ul purpose1 so as to )ar t"e pla2nt2** *rom )r2ng2ng an a+t2on un!er t"e agreement aga2nst t"e !e*en!antK

:-=; 7"e !eterm2nat2on o* t"2s 9uest2on re#ol#es aroun! t"e +onstru+t2on o* t"e +o#enants +onta2ne! 2n +l ,6, an! +l ,691 2n t"e l2g"t o* t"e e#2!en+e a!!u+e! at t"e tr2al6 :-,; $lause ,6, an! +l ,69 "a! )een re*erre! to a)o#e an! woul! re9u2re no repet2t2on "ere6 :->; ;n relat2on to t"e e#2!en+e a!!u+e! at t"e tr2al1 Lee C2m >23 ./PE1/01 a !2re+tor o* t"e pla2nt2**1 test2*2e! t"atB

2a) 2b)

t"e )us2ness w"2+" t"e pla2nt2** "a! +arr2e! on 2n t"e )u2l!2ng stru+tures ere+te! on t"e lan! was a Bal2nese +on+ept $a*e +alle! Bal2%Bal2 $a*eH an! t"e pla2nt2** "a! not o)ta2ne! t"e )u2l!2ng appro#al )e*ore 2t +ommen+e! t"e ere+t2on t"ereo*6

:-.; $ross%e?am2nat2on o* PE1 +on*2rme! t"atB

3a)

3b)

1c) 1d) 1e) 1f)

*rom t"e )eg2nn2ng1 PE1 was 2n*orme! )y1 2nter al2a1 t"e !e*en!ant t"at ere+t2on o* )u2l!2ng stru+tures on t"e lan! must "a#e t"e perm2ss2on o* ;po" $2ty Hall w"2+" 2s t"e lo+al aut"or2ty entruste! w2t" t"e tas3 o* appro#2ng plann2ng an!/or +onstru+t2on on s2teH 2 & 'L( 1 at 1" *or t"e pu)l2+ "ouse1 t"ere was a nee! *or l29u2or l2+en+e1 an enterta2nment l2+en+e1 an! +onsent *rom #ar2ous !epartments su+" as -2re er#2+es 4epartment1 t"e Pol2+e1 t"e 42str2+t <**2+es o* ;po" an! Batu Ca:a"1 an! t"e $ustoms 4epartment to pay t"e ,I ser#2+e ta?H t"e pla2nt2** was re9u2re! to +omply w2t" t"e +on!2t2ons )e*ore )e2ng allowe! to run t"e $a*eH a*ter 2nspe+t2on )y t"e ;po" $2ty Hall1 se#eral +on!2t2ons *or )us2ness l2+en+e "a! not )een *ul*2lle! yetH 2n No#em)er an! 4e+em)er 20001 t"ere was no appro#e! )u2l!2ng plan to +ommen+e +onstru+t2on o* t"e $a*eH an! w"en t"e !e*en!ant re+o#ere! possess2on o* t"e lan! on 2@ Mar+" 20011 t"e pla2nt2** !2! not "a#e t"e appro#e! )u2l!2ng plansH )ut merely a /+on!2t2onal appro#e! letter/ *rom ;po" $2ty Hall1 w"2+" "a! meanw"2le ser#e! on t"e pla2nt2** a temporary stop%wor3 or!er w"2+" stoppe! all a+t2#2t2es on t"e lan! an! w"2+" st2ll rema2ne! 2n

Page 9 *or+e as at 2@ Mar+" 20016 Hen+e1 t"e pla2nt2** was no longer 2n o++upat2on o* t"e lan!6 :-?; ;n our #2ew1 t"e e#2!en+e "as esta)l2s"e! t"at t"e pla2nt2** was 2n )rea+" o* t"e e?press +o#enants +onta2ne! 2n +l ,6, an! +l ,696 Be2ng t"e party 2n )rea+" o* t"e law1 !ue to 2ts *a2lure to o)ta2n t"e )u2l!2ng appro#al *or t"e +onstru+t2on o* t"e )u2l!2ng stru+tures an! t"e pro+urement o* t"e l2+en+es to +arry out enterta2nment )us2ness 2n t"e )u2l!2ng1 t"e pla2nt2** 2s pre+lu!e! *rom enl2st2ng t"e ass2stan+e o* t"e +ourt6 ;n ot"er wor!s1 t"e pla2nt2**/s 2llegal a+ts "a! pre+lu!e! t"e pla2nt2** *rom pursu2ng 2ts a+t2onB e+ turpi causa non oriter actio6 >n a+t2on !oes not ar2se *rom a )ase +auseB see Latin for Lawyers6 :-1; 7"2s +lear an! well re+ogn2se! legal ma?2m 2s *oun!e! 2n goo! sense6 No +ourt w2ll en*or+e an 2llegal +ontra+t or allow 2tsel* to )e ma!e t"e 2nstrument o* en*or+2ng o)l2gat2ons ar2s2ng out o* a +ontra+t or transa+t2on w"2+" 2s 2llegal1 an! t"e 2llegal2ty 2s !uly )roug"t to t"e not2+e o* t"e +ourt1 an! t"e person 2n#o32ng t"e a2! o* t"e +ourt 2s "2msel* 2mpl2+ate! 2n t"e 2llegal2ty1 e#en 2* t"e !e*en!ant "as not plea!e! t"e 2llegal2ty6 o long as t"e e#2!en+e a!!u+e! )y t"e pla2nt2** pro#es t"e 2llegal2ty1 t"e +ourt w2ll not ass2st "2mB per L2n!ley LJ 2n Scott v 4rown/ .oering/ 'cNab $ 5o &1@92' 2 GB (2A at p (2@6 ee also $ontra+ts >+t 19,06 :+*; 7"e pla2nt2** )e2ng t"e gu2lty party +annot )e perm2tte! to ta3e a!#antage o* 2ts own )rea+" o* t"e e?press +o#enants +onta2ne! 2n +l ,6, an! +l ,69 to w"2+" t"e pla2nt2** "as #oluntar2ly su)s+r2)e!B see eg Su Wee Lip @ ?hilip Su v 8a;i Lassim Abdul Rahman &2009' 1 MLJ ,@0 .$>01 per Copal r2 Ram J$>1 apply2ng t"e :u!gment o* Ean Ham=a" $J w"o spo3e *or t"e & 'L( 1 at 11 .t"en0 upreme $ourt 2n <imstern 5orporation 1'3 Sdn 4hd $ Anor v <lobal 0nsurance 5o Sdn 4hd &19@(' 1 MLJ 5201 an! t"at o* Lor! >t32nson 2n New >ealand Shipping 5o Ltd v Socit .es Ateliers 9t 5hantiers de 2rance &1919' >$ 1 .HL06 :+-; ;n t"e +2r+umstan+es1 our answer to t"e a)o#e 9uest2on 2s 2n t"e a**2rmat2#e6 SPEC#F#C REL#EF ACT -1,* :++; 7"e !e*en!ant +ompla2ne! t"at t"e learne! tr2al :u!ge "a! erre! 2n apply2ng t"e pro#2s2ons o* pe+2*2+ Rel2e* >+t 19,0 w"en1 on t"e *a+ts1 t"ey are 2nappl2+a)le as t"e pla2nt2** was at t"e mater2al t2me not t"e o++up2er o* t"e tenante! property6 .> re*eren+e "ere2na*ter to t"e se+t2on 2s a re*eren+e to t"at se+t2on 2n t"e pe+2*2+ Rel2e* >+t 19,006 :+<; 7"e pla2nt2**/s response 2s t"at pursuant to t"e tenan+y agreement1 t"e pla2nt2** 2s an /o++up2er/ as !e*2ne! 2n s (.50H an! t"e !e*en!ant "a! *or+2)ly entere! t"e lan! an! !estroye! t"e pla2nt2**/s property w2t"out a +ourt or!er1 2n w"2+" +ase1 t"e pla2nt2** 2s ent2tle! to +la2m !amages *rom t"e !e*en!ant1 on t"e )as2s o* ss ( an! @6 :+=; 7"e 9uest2on *or !eterm2nat2on un!er t"2s "ea! 2s w"et"er t"e *a+ts1 as un*ol!e! a)o#e1 attra+t t"e appl2+at2on o* s ( rea! w2t" s @K :+,; 7"ese two se+t2ons mer2t repro!u+t2on 2n e?tenso as *ollowsB

Re+o#ery o* spe+2*2+ 2mmo#a)le property

1. 1.

u):e+t to su)se+t2on .201 a person ent2tle! to t"e possess2on o* spe+2*2+ 2mmo#a)le property may re+o#er 2t 2n t"e manner pres+r2)e! )y t"e law relat2ng to +2#2l pro+e!ure6 E"ere a spe+2*2+ 2mmo#a)le property "as )een let un!er a tenan+y1 an! t"at tenan+y 2s !eterm2ne! or "as +ome to an en!1 )ut t"e o++up2er +ont2nues to rema2n 2n o++upat2on o* t"e property or part t"ereo*1 t"e person ent2tle! to t"e

Page 10
possess2on o* t"e property s"all not en*or+e "2s r2g"t to re+o#er 2t aga2nst t"e o++up2er ot"erw2se t"an )y pro+ee!2ngs 2n t"e +ourt6

1. 1

;n su)se+t2on .20 /o++up2er/ means any person law*ully 2n o++upat2on o* t"e property or part t"ereo* at t"e term2nat2on o* t"e tenan+y6

1 1
u2t )y person !2spossesse! o* 2mmo#a)le property

& 'L( 1 at 1)

2. 2. 2. 1. 2

;* t"e person 2s !2spossesse! w2t"out "2s +onsent o* 2mmo#a)le property ot"erw2se t"an 2n !ue +ourse o* law1 "e or any person +la2m2ng t"roug" "2m may1 )y su2t1 re+o#er possess2on t"ereo*1 notw2t"stan!2ng any ot"er t2tle t"at may )e set up 2n t"e su2t6 Not"2ng 2n t"2s se+t2on s"all )ar any person *rom su2ng to esta)l2s" "2s t2tle to any su+" property an! to re+o#er possess2on t"ereo*6 No su2t un!er t"2s se+t2on s"all )e )roug"t aga2nst any Co#ernment 2n Malays2a6 No appeal s"all l2e *rom any or!er or !e+ree passe! 2n any su2t 2nst2tute! un!er t"2s se+t2on1 nor s"all any re#2ew o* any su+" or!er or !e+ree )e allowe!6

:+>; ;n our #2ew1 s (.10 ena)les a person ent2tle! to t"e possess2on o* spe+2*2+ 2mmo#a)le property1 eg a lan!lor!1 to re+o#er t"e property 2n a++or!an+e w2t" +2#2l pro+e!ural law6 :+.; ;t 2s s2gn2*2+ant to note t"at t"e lan!lor!/s r2g"t to re+o#er possess2on o* t"e tenante! property un!er s (.10 2s su):e+t to t"e s2tuat2on set out 2n s (.20 w"2+" pro#2!es *or t"e spe+2*2+ pro+e!ure 2e )y way o* pro+ee!2ngs 2n +ourt *or t"e re+o#ery o* possess2on o* tenante! 2mmo#a)le property aga2nst t"e o++up2er t"ereo*1 an! 2s e?pressly 2nten!e! to +o#er a s2tuat2on w"ereB

4a) 4b) 2c)

t"ere 2s a lett2ng o* spe+2*2+ 2mmo#a)le property un!er a tenan+yH t"e tenan+y 2s !eterm2ne! or "as +ome to an en!H an! t"e o++up2er +ont2nues to rema2n 2n o++upat2on o* t"e property or part t"ereo*6

:+?; <ur +ourts "a#e +ons2stently "el! t"at s (.20 "as relegate! t"e reme!y o* sel*%"elp 2nto o)l2#2on6 7"e r2g"t o* t"e lan!lor! to re+o#er possess2on o* tenante! property 2s to )e e?er+2se! only )y way o* a +ourt a+t2onB .r 8ar;it Singh v Suhaimi bin Samar $ Anor &199,' 2 >MR 19@@ .H$0 per Ha2!ar J .later $J .Malaya00H 9r 9ng 8oc7 $ Anor v New 6im 9ng 9tc &2000' 1 $LJ 2@9 .H$0 per >)!ul Mal23 ;s"a3 J .now J$>0H Nur 0slam Worldwide 0ndustries Sdn 4hd v =ee 6o7 Sum &2001' ( $LJ A9A per Lul3e*l2 Ma32nu!2n J .now -$J0H S'9 Aerospace Sdn 4hd v ST9=R 'annlicher 1'3 Sdn 4hd &2006' 5 MLJ A62H &2006' , $LJ 121 .H$0 per Rosna2n2 au) J$ .now J0H an! 'etro 5harm Sdn 4hd v Lee Nyan 8ong $ 4rothers Sdn 4hd $ Anor &200(' , MLJ 2(2 .H$0 per James -oong J .now .-$J06 & 'L( 1 at 1* :+1; Be t"at as 2t may1 t"e t"2r! +on!2t2on un!er s (.20 re9u2res t"e tenant to )e t"e /o++up2er/ w"o +ont2nues to rema2n 2n o++upat2on o* t"e property or part t"ereo*6 ;n t"e 2nstant appeal1 as allu!e! to a)o#e1 t"e spe+2*2+ *2n!2ng o* *a+ts was t"at1 at t"e mater2al t2me1 t"e pla2nt2** "a! )een ser#e! w2t" a temporary stop%wor3 or!er )y t"e ;po" $2ty Hall w"2+" stoppe! all a+t2#2t2es on t"e lan!1 Hen+e1 t"e pla2nt2** was no longer 2n o++upat2on o* t"e lan!1 2n w"2+" +ase1 t"e pla2nt2** was not an /o++up2er/ un!er s (.206 Hen+e1 s (.20 2s 2nappl2+a)le6 -urt"er1 t"e pla2nt2** "a! )een 2n )rea+" o* t"e +o#enants un!er +l ,6, an! +l ,691 an! so 2n +ontra#ent2on o* t"e statutes1 or!2nan+es or regulat2ons1 2n w"2+" +ase un!er s (.501 t"e pla2nt2** +oul! not )e law*ully 2n o++upat2on o* t"e property or part t"ereo*6 7"e learne! tr2al :u!ge "as t"ere*ore erre! 2n law 2n 2n#o32ng ss ( an! @6 :<*; >lt"oug" s @.10 ena)les a person1 su+" as t"e tenant1 w"o "as )een !2spossesse!1 w2t"out "2s +onsent1 o* 2mmo#a)le property1 ot"erw2se 2n !ue +ourse o* law1 to re+o#er1 )y su2t1

Page 11 possess2on t"ereo*1 t"e !2spossess2on must re*er to !2spossess2on o* t"e 2mmo#a)le property pursuant to t"e s2tuat2on spe+2*2+ally pro#2!e! un!er s (.206 :<-; Howe#er1 s2n+e t"e s2tuat2on set out 2n s (.20 2s +learly 2nappl2+a)le1 t"e pla2nt2** 2s pre+lu!e! *rom a#a2l2ng 2tsel* o* t"e reme!y o* re+o#er2ng possess2on t"ereo* un!er s @.106 :<+; Hen+e1 we answer t"e a)o#e 9uest2on 2n t"e negat2#e6 &AMA$ES :<<; >s t"e pla2nt2** "as *a2le! to esta)l2s" l2a)2l2ty aga2nst t"e !e*en!ant1 t"ere 2s no 9uest2on o* awar!2ng !amages1 )e 2t e?emplary1 aggra#ate! or ot"erw2se w"2+" t"e pla2nt2** soug"t 2n t"e +ross%appeal6 TERM#NAT#ON OF A$REEMENT :<=; 7"e ne?t an! *2nal +ontent2on a!#an+e! *or t"e pla2nt2** was t"at t"e !e*en!ant "as *a2le! to +omply w2t" t"e re9u2rements o* s 25, o* t"e Nat2onal Lan! $o!e ./s 25,/01 an! so t"e learne! :u!ge "a! erre! 2n law an! 2n *a+t 2n "ol!2ng t"at t"e agreement "a! )een properly term2nate!6 :<,; 7"e !e*en!ant ma2nta2ne! t"at t"e learne! tr2al :u!ge was +orre+t 2n +on+lu!2ng t"at t"e !e*en!ant "a! law*ully term2nate! t"e agreement1 2n #2ew o* t"e pla2nt2**/s )rea+" o* +l (61.a0 perta2n2ng to t"e pun+tual payment o* mont"ly rental6 ;t was *urt"er argue! t"at s 25, appl2es only to a reg2stere! tenan+y1 an! not to t"e agreement "ere2n w"2+" "a! not )een reg2stere! nor en!orse! on t"e t2tle6 & 'L( 1 at 1, :<>; ;n our #2ew1 t"e 9uest2on t"at nee!s to )e a!!resse! "ereun!er 2s w"et"er t"e !e*en!ant "as properly an! law*ully term2nate! t"e agreement6 7"2s 2ssue must )e !eterm2ne! )y re*eren+e to t"e tr2al :u!ge/s *2n!2ng o* *a+ts an! t"e true +onstru+t2on o* +l (.10.a01 2n t"e l2g"t o* s 25,6 :<.; $lause (61.a0 pro#2!es *or !e*ault an! term2nat2on o* t"e agreement6 7"e rele#ant port2on rea!sB
4F->8L7 >N4 7FRM;N>7;<N

1.1

7"e lan!lor! an! t"e tenant "ere)y agree t"atB

1. 3
666

2* t"e mont"ly rental "ere)y reser#e! or any part t"ereo* s"all rema2n unpa2! *or a per2o! o* *ourteen !ays a*ter t"e same s"all "a#e )e+ome !ue an! paya)le 2n a++or!an+e w2t" t"e +o#enants *or payment "ere2n +onta2ne!H or

7"en 2n any one 666 o* su+" e#ents1 t"e lan!lor! s"all at any t2me t"erea*ter )e ent2tle! to term2nate t"2s agreement )y not2+e 2n wr2t2ng to t"e tenant an! *or*e2t t"e se+ur2ty !epos2t pa2! "ereun!er )ut w2t"out pre:u!2+e to any a+t2on or ot"er reme!y w"2+" t"e lan!lor! "as or m2g"t or ot"erw2se +oul! "a#e *or t"e re+o#ery o* !amages or arrears 666

:<?; Re#ert2ng to t"e *a+ts1 2t 2s to )e note! t"at on 2@ -e)ruary 20011 t"e pla2nt2**/s +"e9ue *or RM51,00 was presente! to t"e !e*en!ant *or payment o* rental *or t"e mont" o* -e)ruary 20016 E"en t"2s +"e9ue was presente! *or payment on 1( Mar+" 20011 t"ere was 2nsu**2+2ent *un! 2n t"e pla2nt2**/s a++ount to meet t"2s payment1 result2ng 2n 2ts !2s"onour6 u)se9uently1 t"e !e*en!ant/s sol2+2tors M/s $"an & >sso+2ates1 )y letter !ate! 19 Mar+" 2001 to t"e pla2nt2**1 term2nate! t"e agreement6 7"ey !e+lare! t"at )y #2rtue o* +l (61.a01 t"e !e*en!ant 2s ent2tle! to

Page 12 term2nate t"e agreement as t"e mont"ly rental or any part t"ereo* rema2ne! unpa2! )y t"e pla2nt2** *or a per2o! o* 1A !ays a*ter t"e same "a! )e+ome !ue an! paya)le to t"e !e*en!ant )y 1 Mar+" 20016 :<1; 8pon re+e2pt o* t"e letter1 t"e pla2nt2**/s employee 2mme!2ately pro+ee!e! to t"e !e*en!ant/s o**2+e to pay a sum o* RM51,001 )ut t"e !e*en!ant re*use! to a++ept 2t6 <n t"e ne?t !ay1 2@ Mar+" 20011 t"e pla2nt2** t"roug" 2ts sol2+2tors ma!e anot"er attempt to pay t"e rent6 7"2s was aga2n re:e+te! )y t"e !e*en!ant on t"e groun! t"at t"e agreement "a! )een term2nate!6 :=*; 7"e pla2nt2** t"en sue! t"e !e*en!ant *or )rea+" o* +ontra+t an! trespass6 & 'L( 1 at 1! :=-; Ee note t"at w"en t"e +"e9ue was !2s"onoure! on 1( Mar+" 20011 t"e rental *or t"e mont" o* -e)ruary 2001 was alrea!y outstan!2ng *or more t"an 1A !ays .*rom t"e !ue !ate o* 1, -e)ruary 200106 $lause (61.a0 2s e?presse! 2n +lear an! unam)2guous wor!s6 7"e 2ntent2on o* t"e part2es +onta2ne! t"ere2n must )e g2#en e**e+t6 8pon a true +onstru+t2on o* +l (61.a01 t"ere +an )e no !ou)t t"at t"e !e*en!ant was legally ent2tle! to term2nate t"e agreement )y not2+e 2n wr2t2ng6 7"e !e*en!ant was w2t"2n 2ts r2g"t to term2nate t"e agreement6 :=+; Ne?t1 s 25, ra2se! *or t"e pla2nt2** rea!sB
Not2+e )e*ore *or*e2ture

Notw2t"stan!2ng anyt"2ng to t"e +ontrary +onta2ne! t"ere2n1 no person or )o!y s"all )e ent2tle! to en*or+e1 )y a+t2on or ot"erw2se1 t"e *or*e2ture or any lease1 su)%lease or tenan+y *or )rea+" o* any o* t"e pro#2s2ons t"ereo* unless an! unt2l t"at person or )o!y "as ser#e! on t"e lessee1 su)%lessee or tenant *or t"e t2me )e2ng a not2+e 2n wr2t2ngB

2a) 1b) 1c)

pe+2*y2ng t"e part2+ular )rea+" +ompla2ne! o*H ;* t"e )rea+" 2s +apa)le o* reme!y1 re9u2r2ng "2m to reme!y 2tH an! ;n any +ase ot"er t"an non%payment o* rent re9u2r2ng "2m to ma3e +ompensat2on 2n money *or t"e )rea+"6

>n! t"e lessee1 su)%lessee or tenant on w"om t"e not2+e 2s ser#e! "as *a2le!1 w2t"2n a reasona)le t2me t"erea*ter1 to reme!y t"e )rea+" .2* 2t 2s +apa)le o* reme!y0 an! to ma3e reasona)le +ompensat2on 2n money t"ere*or to t"e sat2s*a+t2on o* t"at person or )o!y6

:=<; <ur s"ort answer to t"e pla2nt2**/s su)m2ss2on 2s t"at s 25, appl2es only toB

5a) 5b) 3c)

reg2stere! leases un!er s 221 o* t"e Nat2onal Lan! $o!eH reg2stere! su)leases un!er s 222 t"ereo*H an! tenan+2es e?empt *rom reg2strat2on w"2+" "a#e )een en!orse! on t2tle1 un!er ss 215 an! 516 t"ereo*6

:==; 7"2s propos2t2on "as )een su++2n+tly state! )y Ju!2t" 2"om)2ng 2n "er well%resear+"e! )oo3 on The National Land 5ode/ A 5ommentary .20020 at para 5A,A as *ollowsB
7"2s se+t2on appl2es to reg2stere! leases .s6 22101 reg2stere! su)leases .s6 22201 an! tenan+2es e?empt *rom reg2strat2on w"2+" "a#e )een en!orse! on t2tle .ss6 215 an! 51606

& 'L( 1 at 1& :=,; Ee are o* t"e #2ew t"at t"e pla2nt2**/s +ontent2on on t"2s 2ssue 2s !e#o2! o* mer2ts6 7"e agreement 2n t"e 2nstant appeal 2s outs2!e t"e language o* s 25,6 7"e !e*en!ant "as properly an! law*ully term2nate! 2t6

Page 15 :=>; ;n t"e +2r+umstan+es1 we answer t"e a)o#e 9uest2on 2n t"e a**2rmat2#e6 CONCLUS#ON :=.; -or reasons g2#en a)o#e1 t"e !e*en!ant/s appeal 2s allowe!6 7"e or!er o* t"e H2g" $ourt aga2nst t"e !e*en!ant 2s set as2!e1 an! su)st2tute! w2t" an or!er t"at t"e pla2nt2**/s +la2m )e !2sm2sse! w2t" +osts o* RM101000 "ere an! 2n t"e +ourt )elow6 4epos2t to )e re*un!e! to t"e !e*en!ant6 :=?; 7"e pla2nt2**/s +ross%appeal aga2nst t"e !2sm2ssal o* t"e pla2nt2**/s +la2m *or !amages1 e2t"er e?emplary1 aggra#ate! or ot"erw2se1 2s !2sm2sse! w2t" +osts o* RM21000 to t"e !e*en!ant6 4epos2t to t"e !e*en!ant on a++ount o* t"e *2?e! +osts6 He2424ah JCA :=1; ; "a#e rea! t"e :u!gment o* my learne! )rot"er Low Hop B2ng J$> 2n !ra*t an! ; agree w2t" 2t6 :,*; Howe#er ; w2s" to a!! )r2e*ly t"at t"e pla2nt2** "as *a2le! to *urn2s" any #al2! e?planat2on *or t"e *a2lure to o)ta2n #ar2ous appro#als *rom lo+al aut"or2t2es as re9u2re! un!er spe+2*2+ leg2slat2on .eg operat2ng a )us2ness at stalls an! stru+tures 2llegally ere+te! w2t"out )us2ness l2+en+es06 :,-; "oul! t"e +ourt grant an or!er to susta2n t"e +la2ms 2nst2tute! )y t"e pla2nt2**1 2t woul! tantamount to t"e +ourt en+ourag2ng or e#en g2#2ng +ountenan+e to t"e pla2nt2** to +on!u+t 2ts )us2nesses 2llegally or to ere+t stru+tures 2llegally 2n +ontra#ent2on o* laws an! t"at 2s +learly +ontrary to pu)l2+ pol2+y6 A0d62 Ma247 #sha7 JCA :,+; 7"2s :u!gment +on+erne! Metro $"arm !n B"! as t"e respon!ent ./t"e pla2nt2**/0 an! Lee Nyan Hon & Brot"ers !n B"! as t"e appellant ./t"e !e*en!ant/06 7"e !e*en!ant as t"e lan!lor! rente! out a p2e+e o* #a+ant lan! to t"e pla2nt2** )y way o* a tenan+y agreement !ate! , -e)ruary 20016 7"e re+2tal to t"e tenan+y agreement spelt out t"e purpose o* t"e tenan+y an! t"at & 'L( 1 at 1# was *or t"e sett2ng up o* an enterta2nment outlet )ase! on t"e terms an! +on!2t2ons t"at appeare! 2n t"e sa2! agreement6 :,<; ;nter al2a1 2t was a term o* t"e tenan+y agreement t"at t"e pla2nt2** as t"e tenant s"all +omply w2t" all statutes1 or!2nan+es or regulat2ons present or *uture a**e+t2ng or relat2ng to t"e use o* t"e #a+ant lan! t"at was tenante!1 an! t"e ere+t2on o* stru+tures s"all +omply w2t" all re9u2rements w"2+" may )e g2#en )y any aut"or2ty "a#2ng :ur2s!2+t2on or aut"or2ty o#er or 2n respe+t o* t"e #a+ant lan!6 :,=; 7"e pla2nt2** as t"e tenant also e?pressly +o#enante! t"at t"e #a+ant lan! s"all not )e use! *or any unlaw*ul purpose6 :,,; 7"ese were t"e +ru+2al terms o* t"e tenan+y agreement an! t"2s +ourt must g2#e *ull e**e+t to t"e +lear 2ntent2on o* t"e part2es as man2*este! 2n t"e sa2! agreement6 >++or!2ng to Lor! "aw 2n <reat Western Railway and 'idland Railway v 4ristol 5orporation .191@0 @( LJ $" A1A at p A2A t"atB
666 e?per2en+e "as s"own t"at t"e attempt seems to )e 2ne#2ta)le 2n plea!er/s m2n! 666 to +on*use e#2!en+e o* a wr2ter/s 2ntent2on as su+"1 w2t" t"e 2ntent2on +on#eye! )y t"e wor!s w"2+" "e employe!6 7"e latter alone 2s leg2t2mate6

Page 1A :,>; ;n!ee!1 t"e /2ntent2on o* t"e part2es/ 2s always e9uate! w2t" t"e mean2ng o* t"e +ontra+t 1Toll 12<5T3 ?ty Ltd v Alphapharm ?ty Ltd $ :rs .200A0 219 $LR 16,06 >n! Lor! 2mon o* Cla2s!ale 2n L Schuler A< v Wic7man 'achine Tool Sales Ltd &19(A' >$ 25, at p 265 r2g"tly appl2e! t"e *ollow2ng pert2nent passage 2n Norton on .eeds .19060 at p A5B
666 t"e 9uest2on to )e answere! always 2s1 /E"at 2s t"e mean2ng o* w"at t"e part2es "a#e sa2!K/ not1 /E"at !2! t"e part2es mean to sayK/666 2t )e2ng a presumpt2on :ur2s et !e :ure 666 t"at t"e part2es 2nten!e! to say t"at w"2+" t"ey "a#e sa2!6

ANAL S#S :,.; ;n sett2ng up t"e enterta2nment outlet on t"e #a+ant lan!1 t"e pla2nt2** as t"e tenant ere+te! t"e )u2l!2ng an! set up a /Bal2nese +on+ept $a*e/ 3nown as /Bal2 Bal2 $a*e/6 a! to say t"at w"en t"e pla2nt2** +onstru+te! t"e )u2l!2ng on t"e #a+ant lan!1 2t "a! not o)ta2ne! t"e )u2l!2ng appro#al6 7"e pla2nt2** t"roug" Lee C2m >23 test2*e! t"atB
Ee "a#e not got )u2l!2ng appro#al )e*ore we +ommen+e! )u2l!2ng6

:,?; ;t was a !amn2ng p2e+e o* e#2!en+e aga2nst t"e pla2nt2**6 ;t must )e un!erstoo! to mean an a!m2ss2on )y t"e pla2nt2** t"at 2t "a! )rea+"e! an & 'L( 1 at 1% e?press +o#enant un!er t"e tenan+y agreement6 7"ere was no plann2ng appro#al *rom t"e 4ewan Ban!araya ;po" ./4B;/06 :,1; >ga2n1 t"ere was e#2!en+e emanat2ng *rom Lee C2m >23 t"at t"e pu) at /Bal2 Bal2 $a*e/ re9u2re! l29uor l2+en+e6 7"ere was also t"e nee! to se+ure an enterta2nment l2+en+e an! o)ta2n t"e rele#ant +onsents *rom #ar2ous !epartments su+" as t"e *2re )r2ga!e1 t"e pol2+e1 t"e !2str2+t o**2+es o* ;po" an! Batu Ca:a" as well as t"e +ustoms 2n or!er to e?pe!2te payment o* t"e ,I ser#2+e ta?6 ;n s"ort1 Lee C2m >23 3new t"at t"e pla2nt2** "a! to +omply w2t" all t"e statutes1 or!2nan+es or regulat2ons present or *uture a**e+t2ng or relat2ng to t"e use o* t"e #a+ant lan! t"at t"e pla2nt2** tenante!6 :>*; 7"e e#2!en+e o* Lee C2m >23 was !etr2mental to t"e pla2nt2**6 7"ere +an )e no !ou)t t"at t"e pla2nt2** as t"e tenant "a! )latantly *loute! t"e law an! was 2n )rea+" o* t"e e?press +o#enants as set out 2n t"e tenan+y agreement6 :>-; 7"ere was no pr2or appro#al o* /4B;/ )e*ore t"e )u2l!2ng was +onstru+te!6 7"ere was also no enterta2nment l2+en+es 2ssue! to t"e pla2nt2** to run an! manage t"e /Bal2 Bal2 $a*e/ 2n t"e )u2l!2ng +onstru+te! )y t"e pla2nt2**6 :>+; By letter !ate! 19 Mar+" 20011 t"e !e*en!ant term2nate! t"e tenan+y agreement *or non% payment o* rental6 :><; <n 2@ Mar+" 20011 t"e !e*en!ant as t"e lan!lor! entere! 2nto t"e sa2! lan! w2t"out any +ourt or!er an! seale! o** t"e area an! poste! se+ur2ty guar!s6 >ga2n1 on 16 >pr2l 2001 an! on 1( >pr2l 20011 t"e !e*en!ant as t"e lan!lor! t"roug" 2ts ser#ants or agents !emol2s"e! all t"e stru+tures an! )u2l!2ngs on t"e sa2! lan! w2t" +ranes an! )ull!o=ers6 My learne! )rot"er Low Hop B2ng J$> r2g"tly sa2! t"at t"e reme!y o* sel* "elp "as )een relegate! 2nto o)l2#2on )y #2rtue o* pe+2*2+ Rel2e* >+t 19,0 an! t"ose assortment o* +ases +2te! )y H2s Lor!s"2p6 But w"en t"e !e*en!ant entere! t"e sa2! lan!1 t"e tenan+y agreement was alrea!y term2nate! )y t"e !e*en!ant6 :>=; >ppellate 2nter*eren+e s"oul! )e e?er+2se! 2n *a#our o* t"e !e*en!ant as t"e lan!lor!6 7"ere was no proper e#aluat2on o* t"e e#2!en+e )y t"e H2g" $ourt an!1 +onse9uently1 t"ere was a m2s!2re+t2on on t"e *a+ts an! t"e law warrant2ng appellate 2nter*eren+e6 Ean ule2man -J 2n Rasidin bin ?artor;o v 2rederic7 6iai &19(6' 2 MLJ 21A spea32ng *or t"e -e!eral $ourt soun!e! a

Page 1, warn2ng t"atB


& 'L( 1 at 1 2t woul! )e wrong *or t"e appellate +ourt w"2+" "a! not seen or "ear! t"e w2tnesses to su)st2tute 2ts own *2n!2ng o* *a+t *or t"at o* t"e learne! tr2al :u!ge6

:>,; But appellate 2nter*eren+e 2s en+ourage! an! 2s perm2ss2)le 2n su+" s2tuat2ons as en#2sage! )y Copal r2 Ram J$> .now -$J0 2n Renal Lin7 16L3 Sdn 4hd v .ato- .r 8arnam Singh &199(' 2 MLJ 5(5 at p 5(9B
8nless we1 as a +ourt o* appeal1 are +on#2n+e! t"at t"ere was no :u!2+2al appre+2at2on o* t"e e#2!en+e )y t"e tr2er o* *a+t1 or t"at t"e au!2o%#2sual a!#antage reser#e! to a tr2al :u!ge "a! )een m2sse! or t"at t"e *2n!2ngs ma!e !o not a++or! w2t" t"e pro)a)2l2t2es o* t"e +ase w"en ta3en as a w"ole1 2t woul! not )e open to us to 2nter#ene an! upset t"e *2n!2ngs ma!e )y a tr2al :u!ge6

:>>; Lor! Re2! 2n 4enma+ v Austin 'otor 5o Ltd &19,,' 1 >ll FR 526 at p 529 o)ser#e! as *ollowsB
But 2n +ases w"ere t"ere 2s no 9uest2on o* t"e +re!2)2l2ty or rel2a)2l2ty o* any w2tness1 an! 2n +ases w"ere t"e po2nt 2n !2spute 2s t"e proper 2n*eren+e to )e !rawn *rom pro#e! *a+ts1 an appeal +ourt 2s generally 2n as goo! a pos2t2on to e#aluate t"e e#2!en+e as t"e tr2al :u!ge1 an! oug"t not to s"r2n3 *rom t"at tas31 t"oug" 2t oug"t1 o* +ourse1 to g2#e we2g"t to "2s op2n2on6

:>.; ;n e#aluat2ng t"e a#a2la)le e#2!en+e1 t"e pla2nt2** as t"e tenant was 2n +lear )rea+" o* t"e terms o* t"e tenan+y agreement6 7"e pla2nt2** "a! )rea+"e! t"e e?press +o#enants o* t"e tenan+y agreement w2t" 2mpun2ty an! t"2s +ourt w2ll not len! 2ts ass2stan+e to t"e pla2nt2**6 ;t 2s 9u2te apparent t"at t"e pla2nt2** 2s rely2ng on 2ts 2llegal a+ts 2n not pro+ur2ng t"e )u2l!2ng plan an! t"e l2+en+e to operate t"e enterta2nment outlet 2n t"e )u2l!2ng to a!#an+e 2ts +la2m aga2nst t"e !e*en!ant6 ; "a#e no "es2tat2on 2n str232ng out t"e pla2nt2**/s +la2m )ase! on t"e e+ turpi causa non oritur actio pr2n+2ple6 ;t 2s a pr2n+2ple t"at 2s appl2+a)le to all +auses o* a+t2on 2n+lu!2ng +la2ms 2n tort6 Bel!am LJ !el2#er2ng t"e :u!gment o* t"e +ourt 2n 5lunis v 5amden and 0slington 8ealth Authority &199@' GB 9(@ .$>0 at p 9@( "a! t"2s to say a)out t"e e+ turpi causa non oritur actio pr2n+2pleB
But w"et"er a +la2m )roug"t 2s *oun!e! 2n +ontra+t or 2n tort1 pu)l2+ pol2+y only re9u2res t"e +ourt to !eny 2ts ass2stan+e to a pla2nt2** see32ng to en*or+e a +ause o* a+t2on 2* "e was 2mpl2+ate! 2n t"e 2llegal2ty an! 2n putt2ng *orwar! "2s +ase "e see3s to rely upon t"e 2llegal a+ts6

:>?; >n! Lor! Mans*2el! 2n 8olman et al- v (ohnson/ alias Newland .1((,0 9@ FR 1120 at p 1121H 1 $owp 5A1 at p 5A5 e?pla2ne! t"e e+ turpi causa non oritur actio pr2n+2ple 2n )roa! terms 2n t"2s wayB
& 'L( 1 at )" No +ourt w2ll len! 2ts a2! to a man w"o *oun!s "2s +ause o* a+t2on upon an 2mmoral or an 2llegal a+t6 ;*1 *rom t"e pla2nt2**/s own stat2ng or ot"erw2se1 t"e +ause o* a+t2on appears to ar2se e+ turpi causa1 or t"e transgress2on o* a pos2t2#e law o* t"2s +ountry1 t"ere t"e +ourt says "e "as no r2g"t to )e ass2ste!6 ;t 2s upon t"at groun! t"e +ourt goesH not *or t"e sa3e o* t"e !e*en!ant1 )ut )e+ause t"ey w2ll not len! t"e2r a2! to su+" a pla2nt2**6

:>1; tatute w2se1 t"ere 2s s 2A o* t"e $ontra+ts >+t 19,0w"2+" ena+ts as *ollowsB

E"at +ons2!erat2ons an! o):e+ts are law*ul1 an! w"at not 7"e +ons2!erat2on or o):e+t o* an agreement 2s law*ul1 unless %%

1. 1.

2t 2s *or)2!!en )y a lawH 2t 2s o* su+" a nature t"at1 2* perm2tte!1 2t woul! !e*eat any lawH

Page 16

1. 1. 1. 4

2t 2s *rau!ulentH 2t 2n#ol#es or 2mpl2es 2n:ury to t"e person or property o* anot"erH or t"e +ourt regar!s 2t as 2mmoral1 or oppose! to pu)l2+ pol2+y6

;n ea+" o* t"e a)o#e +ases1 t"e +ons2!erat2on or o):e+t o* an agreement 2s sa2! to )e unlaw*ul6 F#ery agreement o* w"2+" t"e o):e+t or +ons2!erat2on 2s unlaw*ul 2s #o2!6

:.*; >n! t"e 2llustrat2ons t"ereto +onta2n e?amples o* w"at woul! +onst2tute law*ul +ons2!erat2ons an! w"at woul! )e +ons2!ere! unlaw*ul an! #o2!6 Has"2m Jeop > an2 $J .Malaya0 "a! o++as2on to +ons2!er t"e legal ram2*2+at2ons o* $ontra+ts >+t 19,0 2n 5hung 6hiaw 4an7 Ltd v 8otel Rasa Sayang Sdn 4hd $ Anor &1990' 1 MLJ 5,6 at p 562 an! t"2s was w"at H2s Lor!s"2p sa2!B
e+t2on 2A o* t"e $ontra+ts >+t 19,0 2s e?pl2+2t an! t"at 2* an agreement 2s *or)2!!en )y law or pro"2)2te! )y law or o* su+" nature t"at 2t woul! !e*eat t"e law1 t"at agreement 2s unlaw*ul an! #o2!6 ;* t"e agreement 2s pro"2)2te! )y law or *or)2!!en )y law or o* su+" nature t"at 2t woul! !e*eat t"e law t"en t"e 9uest2on o* pu)l2+ pol2+y !oes not ar2se at all6 7"e 9uest2on o* pu)l2+ pol2+y ar2ses only 2n para .e0 w"ere t"e +ourt +ons2!ers an agreement to )e 2mmoral or ot"erw2se oppose! to pu)l2+ pol2+y6

:.-; ;t 2s also 2nstru+t2#e to +ons2!er two +ases 2n#ol#2ng 2llegal2ty ar2s2ng out o* a statutory pro"2)2t2on6 > goo! start2ng po2nt woul! )e t"e +ase o* 0n re An Arbitration v 'ahmoud and 0spahani &1921' 2 DB (16 .$>06 ;n t"at +ase1 t"e pla2nt2**1 w"o "a! a l2+en+e to sell l2nsee! o2l1 sol! some to t"e & 'L( 1 at )1 !e*en!ant 2n +ontra#ent2on o* t"e ee!1 <2ls an! -ats <r!er 19196 7"2s statute ma!e 2t an o**en+e to )uy or sell l2nsee! o2l w2t"out a l2+en+e6 7"e !e*en!ant was unl2+ense! an! "e "a! 2n!u+e! t"e pla2nt2** to sell "2m t"e o2l )y a *rau!ulent representat2on t"at "e was l2+ense!6 7"e !e*en!ant later re*use! to a++ept !el2#ery o* t"e o2l an! was sue! *or !amages )y t"e pla2nt2**6 7"e $ourt o* >ppeal "el! t"at t"e pla2nt2**/s +la2m *a2le! )e+ause o* t"e 2llegal2ty o* t"e +ontra+t6 4esp2te t"e *a+t t"at t"e pla2nt2** was t"e 2nno+ent party1 t"e leg2slat2on spe+2*2+ally pro"2)2te! any sale o* o2l to unl2+ense! persons6 :.+; 7"e +ase o* 0n re An Arbitration v 'ahmoud and 0spahani s"oul! )e +ontraste! w2t" a s2tuat2on w"ere an 2nno+ent party sues on a +ontra+t w"2+" 2s not e? *a+2e 2llegal1 )ut w"2+" 2s per*orme! )y t"e ot"er party 2n an 2llegal manner6 7"e +ase o* Archbolds 12reightage3/ Ltd v S Spanglett/ Ltd 1Randall/ third party3 &1961' 1 >ll FR A1( woul! )e a +ase 2n po2nt6 ;n t"at +ase1 t"e !e*en!ants agree! to +arry a loa! o* w"2s3y )y roa!1 *rom Lee!s to Lon!on1 *or >r+")ol!s6 >r+")ol!s were unaware t"at t"e #e"2+le to )e use! )y t"e !e*en!ants !2! not "a#e t"e +orre+t l2+en+e 2n or!er to +omply w2t" s 1.10 o* t"e Roa! an! Ra2l 7ra**2+ >+t 19556 7"e !e*en!ants1 "owe#er1 were aware o* t"2s *a+t6 omew"ere on t"e route to Lon!on t"e goo!s were stolen as a result o* t"e negl2gen+e o* t"e !e*en!ants/ !r2#er6 7"e !e*en!ants argue! t"at t"ey were not l2a)le *or !amages )e+ause t"e +ontra+t was 2llegal )y reason o* t"e Roa! an! Ra2l 7ra**2+ >+t 19556 7"e +ourt "el! t"at >r+")ol!s were not !e)arre! *rom re+o#er2ng !amages )y t"e 2llegal2ty o* t"e !e*en!ants/ use o* t"e2r #e"2+le6 >r+")ol!s were 2nno+ent )ut t"at *a+t "a! not "elpe! t"e pla2nt2** 2n 0n re An Arbitration v 'ahmoud and 0spahani6 But 'ahmoud +an )e !2st2ngu2s"e! *rom Archbolds +ase )y #2rtue o* t"e nature o* t"e statutory pro"2)2t2on6 ;n 'ahmoud1 t"e +ontra+t o* sale to an unl2+ense! person was e?pressly *or)2!!en6 E"ereas 2n Archbolds1 t"e +arr2age o* >r+")ol!s/ w"2s3y was not as su+" pro"2)2te!6 7"e Roa! an! Ra2l 7ra**2+ >+t 1955 merely regulate! t"e manner 2n w"2+" +arr2ers s"oul! transport goo!s6 7"e +ontra+t was not1 t"ere*ore1 e?pressly *or)2!!en )y t"e statute an! t"e pla2nt2**s were ent2tle! to !amages6 :.<; ;n s"arp +ontrast1 "ere we are +on+erne! w2t" t"e tenan+y agreement )etween t"e pla2nt2** an! t"e !e*en!ant an! t"e e#2!en+e s"owe! t"at t"e pla2nt2** as t"e tenant *a2le! to *ul*2l 2ts o)l2gat2ons w"2+" 2t assume! un!er t"e tenan+y agreement6 7"e pla2nt2** as t"e tenant *a2le! to +omply w2t" t"e statutory pro#2s2ons a**e+t2ng t"e #a+ant lan! an! t"e use t"ereo* ar2s2ng *rom t"e tenan+y agreement6

Page 1( :.=; ; agree w2t" my learne! )rot"er Low Hop B2ng J$> t"at t"e *a+ts1 as un*ol!e!1 !o not attra+t t"e appl2+at2on o* pe+2*2+ Rel2e* >+t 19,0 rea! w2t" s @ o* t"e same >+t6 & 'L( 1 at )) :.,; 7"2s appeal +on+erne! t"e 2llegal per*orman+e o* a per*e+tly legal +ontra+t6 C2#en t"e spe+2*2+ an! a!m2tte! )rea+"es o* t"e pla2nt2** as t"e tenant1 t"e pla2nt2** was +erta2nly !2sent2tle! to see3 spe+2*2+ rel2e* un!er t"e pe+2*2+ Rel2e* >+t 19,06 ;t was r2g"tly su)m2tte! t"at t"e tenan+y agreement was not"2ng more t"an an empty +ontra+t or 2n latin nudum pactum6 ;n a gam)l2ng +ontra+t 2n t"e +ase o* ?et 2ar 9astern 1'3 Sdn 4hd v Tay =oung 8uat $ :rs &1999' , MLJ ,,@ at p ,(@1 ; "a! t"2s to say w"en ; was s2tt2ng on t"e H2g" $ourt )en+"B
> transa+t2on o* t"2s nature must )e #o2! as t"e Malays2an law !oes not re+ogn2se a gam)l2ng +ontra+t6 Put 2t 2n anot"er way1 t"e Malays2an law !oes not re+ogn2se gam)l2ng +ontra+ts or transa+t2ons an! t"ese are +ons2!ere! #o2!6 ;n Lat2n language1 2t 2s nu!um pa+tum6 ;n Fngl2s"1 2t means an empty +ontra+t6 >s an empty +ontra+t1 no legal r2g"t or l2a)2l2ty +an ar2se *rom 2t6

:.>; $ont2nu2ng on t"e same page1 ; "a! t"2s to sayB


666 no +2#2l2se! :u!2+2al system o* law +an s2t )a+3 an! sm2le an! a+t non+"alantly as 2* not"2ng "as "appene!6 7"2s +ourt must a+t sw2*tly an! str23e !own an 2llegal +ontra+t6

:..; E2t" respe+t1 w"at ; sa2! 2n ?et 2ar 9astern must apply w2t" e9ual *or+e to t"e present appeal at "an!6 7"e pe+2*2+ Rel2e* >+t 19,0 !o not apply to t"e pe+ul2ar *a+ts o* t"e present appeal6 7"e )u2l!2ng +onstru+te! )y t"e pla2nt2** as t"e tenant was w2t"out appro#al o* /4B;/ an! t"ere was no enterta2nment l2+en+e 2ssue! to t"e pla2nt2**6 ;n t"ese +2r+umstan+es1 2t woul! )e ne?t to 2mposs2)le *or t"e pla2nt2** to see3 t"e a2! o* t"2s +ourt to 2n#o3e t"e pe+2*2+ Rel2e* >+t 19,06 7o +on*oun! t"e matter *urt"er1 t"e tenan+y as en#2sage! un!er t"e tenan+y agreement "a! )e+ome 2mposs2)le an!1 2n +onse9uen+e1 #o2! un!er $ontra+ts >+t 19,06 :.?; ; s"all now +ons2!er t"e pla2nt2**/s +ross%appeal aga2nst t"e !2sm2ssal o* t"e pla2nt2**/s +la2m *or e?emplary an! aggra#ate! !amages6 Now1 )e*ore !amages +an )e re+o#ere! 2n an a+t2on t"ere must )e a wrong +omm2tte! an! t"at wrong may )e 2n tort or1 l23e t"e present appeal1 *or )rea+" o* +ontra+t6 F#en 2* a loss "as )een 2n+urre!1 !amages +annot )e awar!e! 2n t"e a)sen+e o* a wrong6 Lor! Er2g"t aptly sa2! 2n 8ay or 4ourhill v =oung &19A5' >$ 92 at p 106B
4amage !ue to t"e leg2t2mate e?er+2se o* a r2g"t 2s not a+t2ona)le1 e#en 2* t"e a+tor +ontemplates t"e !amage6 ;t 2s damnum absCue in;uria6 7"e !amage must )e attr2)uta)le to t"e )rea+" )y t"e !e*en!ant o* some !uty ow2ng to t"e pla2nt2**6

& 'L( 1 at )* :.1; o1 t"e prel2m2nary 9uest2on to pose )e*ore any 2ssue o* !amages +an ar2se 2s t"2sB w"et"er a wrong "as )een +omm2tte!K Put !2**erently1 "as t"e pla2nt2** pro#e! t"e !e*en!ant/s l2a)2l2tyK :?*; 7"e purpose o* e?emplary !amages 2s to pun2s"6 >n! t"e 9uantum o* t"e e?emplary !amages may )e 2n*luen+e! )y t"e s2=e o* t"e +ompensat2on soug"t e#en to t"e e?tent o* e?+ee!2ng t"e s2=e o* t"e +ompensat2on 2tsel*6 ;n Roo7es v 4arnard $ :rs &196A' >$ 1129 at p 122@1 Lor! 4e#l2n o)ser#e! t"atB
6666 a :ury s"ou;! )e !2re+te! t"at 2*1 )ut only 2*1 t"e sum w"2+" t"ey "a#e 2n m2n! to awar! as +ompensat2on .w"2+" may1 o* +ourse1 )e a sum aggra#ate! )y t"e way 2n w"2+" t"e !e*en!ant "as )e"a#e! to t"e pla2nt2**0 2s 2na!e9uate to pun2s" "2m *or "2s outrageous +on!u+t1 to mar3 t"e2r !2sappro#al o* su+" +on!u+t an! to !eter "2m *rom repeat2ng 2t1 t"en 2t +an awar! some larger sum6

:?-; ;n 4radford 5ity 'etropolitan 5ouncil v Arora &1991' 2 GB ,0( .$>01 t"e $ourt o* >ppeal w"2le a+3nowle!g2ng t"at e?emplary !amages s"oul! )e awar!e! only w"ere +ompensatory !amages are 2na!e9uate to pun2s" t"e !e*en!ant1 up"el! an e?emplary awar! o* t"e 2n!ustr2al tr2)unal6

Page 1@ :?+; ;n Sallows v <riffiths &2001' - R 1, .$>01 t"e +ourt re*use! to or!er e?emplary !amages )e+ause 2t +ons2!ere! t"at t"e +ompensatory awar! was a!e9uate6 ;n .rane v 9vangelou $ :rs &19(@' 1 ELR A,, .$>01 )ot" Lawton an! Co** LJJ t"oug"t 2t was :ust2*2a)le to amalgamate aggra#ate! !amages w2t" e?emplary !amages6 :?<; Now1 2n or!er to su++ee! 2n 2ts +la2m *or e?emplary an! aggra#ate! !amages1 t"e pla2nt2** as t"e tenant must pro#e t"at t"e !e*en!ant as t"e lan!lor! was l2a)le6 a!ly1 t"e pla2nt2** *a2le! to pro#e t"e !e*en!ant/s l2a)2l2ty an! t"at )e2ng t"e +ase1 t"e pla2nt2** was not ent2tle! to any !amages )e 2t e?emplary or aggra#ate!6 :?=; Lee C2m >23 ga#e e#2!en+e on two o++as2ons6 7"e *2rst o++as2on was w"en "e too3 t"e w2tness stan! on )e"al* o* t"e pla2nt2** an! test2*2e! on t"e 2ssue o* l2a)2l2ty6 ;n *a+t1 "e was t"e only w2tness *or t"e pla2nt2** on t"e 2ssue o* l2a)2l2ty6 7"e pla2nt2** t"en +lose! 2ts +ase on l2a)2l2ty on 1@ >pr2l 20026 :?,; 7"e se+on! o++as2on w"en Lee C2m >23 ga#e e#2!en+e was on 9 No#em)er 2006 on t"e 2ssue o* 9uantum6 He ga#e e#2!en+e on )e"al* o* t"e pla2nt2**1 2n "2s purporte! +apa+2ty as t"e !2re+tor o* t"e pla2nt2**1 an! not 2n "2s 2n!2#2!ual +apa+2ty6 a!ly1 Lee C2m >23 was1 as at 9 No#em)er 20061 an & 'L( 1 at ), un!2s+"arge! )an3rupt1 an! t"2s *a+t was w2t""el! *rom t"e H2g" $ourt . The Topps 5o 0nc v 'ally (aya Sdn 4hd &199@' , MLJ (AA1 per Low Hop B2ng J .now J$>006 :?>; ;n "ol!2ng "2msel* out as a !2re+tor o* t"e pla2nt2** at t"e pro+ee!2ngs )e*ore t"e H2g" $ourt on 9 No#em)er 20061 an! at w"2+" !ate t"e sa2! Lee C2m >23 was alrea!y a!:u!ge! a )an3rupt1 t"e sa2! Lee C2m >23 "a! a+te! 2n +ontra#ent2on o* t"e law %% part2+ularly $ompan2es >+t 196,6 H2s +on!u+t 2n "ol!2ng "2msel* out as a !2re+tor at t"e po2nt o* t2me w"en "e was !2s9ual2*2e! )y law *rom a+t2ng as a !2re+tor must )e +onstrue! a!#ersely aga2nst "2m6 7"e trustwort"2ness an! t"e +re!2)2l2ty o* "2s e#2!en+e are greatly un!erm2ne! .Leasing 5orporation Sdn 4hd v 0ndah Lestari Sdn 4hd &200(' ( MLJ ,06 .$>01 per Lul3e*l2 J$> .now -$J006 :?.; ;t goes w2t"out say2ng t"at t"e ent2re e#2!en+e o* Lee C2m >23 on t"e 2ssue o* !amages must )e !2sregar!e! )y t"2s +ourt6 :??; E"at 2s now le*t *or me to !o 2s to ma3e t"ose or!ers as ma!e )y my learne! )rot"er Low Hop B2ng J$>6 ; now ma3e t"ose or!ers a++or!2ngly6 .efendant-s appeal allowed and plaintiff-s cross-appeal dismissed with costsA

Reporte! )y Do"2la Nesan