KK Mart sues socks supplier for at least RM38m

KK Supermart & Superstore Sdn Bhd filed a lawsuit against Xin Jian Chang Sdn Bhd and its director Soh Chin Huat today over an alleged breach of contract and sabotage after the company was supplied with socks bearing the word Allah without its knowledge.

KK Supermart filed the lawsuit through Messrs David Gurupatham & Koay at the Shah Alam High Court, naming Soh and his company as the first and second defendants.

Lawyer David Gurupatham, representing KK Supermart confirmed the filing when contacted by Bernama.

David said his client is seeking an average of RM1.5 million a week in compensation for the loss of income, RM10.5 million for damage caused to the company’s brand name, RM20.3 million for the company’s aborted proposed stock market listing, aggravated, punitive and exemplary damages and other relief deemed reasonable by the court.

KK Supermart has also applied for a prohibitory injunction to prevent the defendants from further causing losses by way of unlawful interference with its business.

The statement of claim filed by the plaintiff showed that KK Supermart and both defendants signed an agreement to supply products for sale on consignment at its premises, subject to the contract’s terms and conditions.

The plaintiff alleges that on Feb 5, the second defendant requested permission from the plaintiff to supply arm covers, which was allowed in good faith but was not notified or informed that the barcode of this product would be used for the sale of socks bearing the word Allah at its premises.

Based on the plaintiff’s record, the defendant had placed the socks at the premises without being supervised by the store’s workers as only a cashier was on duty and alleged that the defendant had deliberately sabotaged its business and destroyed its reputation, which resulted in a boycott and negative comments from the public.

Criminal charges

In a separate development, both KK Mart and Xin Jian Chang Sdn Bhd are expected to be charged today with causing religious offence in connection to the controversial socks.

Malaysiakini was made to understand that besides the two companies, the charges would be levelled against two individuals from KK Mart and three from supplier Xin Jian Chang.

They would be charged under Section 298 of the Penal Code with hurting the religious feelings of others.

This is punishable with up to one year in jail, a fine, or both.

Additionally, it is understood that those from Xin Jian Chang would be charged under Section 109 of the Penal Code with abetment.

Section 109 states that the punishment for abetting a crime, unless specified, will be the same as the actual offence.

The charges will be made at the Shah Alam Sessions Court.

- Bernama

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