Commentary on Pembinaan Perwira Harta Sdn Bhd v Letrikon Jaya Bina Sdn Bhd

Abd Ghadas, Zuhairah Ariff (2015) Commentary on Pembinaan Perwira Harta Sdn Bhd v Letrikon Jaya Bina Sdn Bhd. In: Learning From Decided Construction Cases and Commentaries. CIDB, Kuala Lumpur, pp. 32-39. ISBN 978-967-400-345-6

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Abstract

This is a Federal court case which involves an appeal case which involved a building contract between a main contractor (appellant) and a subcontractor (respondent) of a housing project Kuala Lumpur. The respondent was not able to execute their works under the sub-contract because the piling works of the project has not been completed. Nine months after the respondent being appointed, the appellant ceased to be main contractor of the project and they wrote a letter to the respondent stating that by virtue of clause 19 of the Appendix A – Supplementary Terms and Conditions to the letter of award which was issued to respondent , the appellant has the right to omit wholly the respondent works under the subcontract agreement and such omissions of works maybe deducted from the sub-contract sum and no claim whatsoever will be entertained for such omissions. The respondent brought a suit against the appellant claiming that they are not entitled to omit the remaining works of the respondent. The sole issue of law which was discussed in the High Court pursuant to Order 33 Rule 2, Rules of the High Court 1980 was whether clause 19 of the Appendix A – Supplementary Terms and Conditions to the letter of award entitled the main contractor to remove all scope of works of the sub-contractor. The judge in the High Court refer to the decision of the Australian High Court in Commissioner for Main Roads v Reed & Stuart Pty Ltd & Anor [1974] A.L.J.R 461 and held that a literal reading of clause 19 of the Appendix A – Supplementary Terms and Conditions to the letter of award would be unreasonable to entitled the main contractor to terminate the sub-contractor without any default by the sub-contractor.

Item Type: Book Section
Subjects: K Law > K Law (General)
Faculty / Institute: Faculty of Law, Accountancy & International Relations
Depositing User: Prof. Dr Zuhairah Ariff Abd Ghadas
Date Deposited: 29 Dec 2015 03:01
Last Modified: 29 Dec 2015 03:01
URI: http://erep.unisza.edu.my/id/eprint/4275

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