The Federal Court today upheld a decision of the Appeals Court which had set aside the RM28.6 million in damages awarded to businessman Tang Hak Ju for loss of profits and loss of goodwill over a land deal.   

A five-member panel led by Chief Judge of Malaya Zulkefli Ahmad Makinudin unanimously dismissed Tang's application for leave to appeal against the Appeals Court’s decision delivered on Jan 11 this year.   

Justice Zulkefli, who sat on the panel with Federal Court judges Abdull Hamid Embong, Hasan Lah, Datin Paduka Zaleha Zahari and Sulong Matjeraie, held that Tang had failed to fulfill the requirement under Section 96 (a) of the Courts of Judicature Act 1964 for leave to be granted to him.  

Tang was awarded damages for loss of profits, wasted expenditure and loss of goodwill by the Penang High Court on Oct 4, 2005, the quantum of which was to be assessed by the deputy registrar of the High Court.   

The High Court decided in favour of Tang, who had sued the respondents - Penang Director of Lands and Mines, Penang Registrar of Land Titles and Seberang Prai Tengah District Land Administrator - over the cancellation of the title of a 4.3-hectare plot of land in Seberang Prai by the respondents who had earlier given Tang approval to alienate the land for quarrying.   

The deputy registrar assessed the damages and awarded Tang RM28.24 million for loss of profits, RM658,271 for wasted expenditure, RM450,000 for loss of goodwill along with eight per cent interest. Inclusive of the interest, the amount was about RM40 million.

On appeal by the respondents, the Appeals Court set aside the RM28.24 million damages for loss of profits and ordered a re-assessment.

It also set aside the RM450,000 damages for loss of goodwill and reduced the damages for wasted expenditure to RM481,785.

The court also ordered Tang to refund about RM14.09 million from the sum of RM14.67 million earlier paid by the respondents following a High Court order.

Tang’s lawyer Bastian Vendargon said his client had to go back to the Penang High Court for re-assessment of damages on the loss of profits following his failure to obtain leave to appeal to the Federal Court.

The respondents’ lawyer, Malik Imtiaz Sarwar, said Tang had to refund RM14.09 million to the respondents.

- Bernama