NLFCS loses breach of contract suit

Gopala Krishnan who is the actual owner of Westingmont wins battle with NLFCS after nearly two years. A leading law lecturer, Gopal took a hiatus from his rewarding career to become a contractor when he was offered by NLFCS boss Tan Sri Somasundram to put a mixed housing scheme on a 5.2 ha NLFCS land occupied by squatters
However, in 2009 NLFCS took away the land and sold it to KEDA Regional Authority on the instruction of then MIC boss Samy Vellu. He begged for compensation but when NLFCS refused to entertain him he filed a breach of contract suit against the cooperative. Read the rest here'']

 High Court says NLFCS must pay project consultant for loses of profit and cost 

THE Kuala Lumpur High Court today March 28) decided in favour of a relatively unknown project consultant against the National Land Finance Cooperative Society in a landmark breach of contract suit.

Judge Datuk Abdul Aziz Abdul Rahim awarded RM315, 000 in special damages and RM70, 000 in cost to Westingmont Holdings Sdn Bhd.

He also awarded an interest of 8 percent on all the claims from the date the plaintiff went into a housing project agreement with NLFCS in 1999.

 On the plaintiff’s RM5.7million general damages claim, the judge though agreeing in principle left the quantum to be decided by the deputy registrar in the face of inconclusive documentary evidence.

The claims were not corroborated by an independent body and I want the plaintiff’s council to furnish the documents to the deputy registrar to decide on the actual quantum,” he told K. Ranjit Singh, the counsel for the plaintiff.

AN overjoyed Gopal (l) congratulates his counsel Ranjit Singh

 The judge fixed April 2 for the plaintiff’s counsel to furnish documentary proof on their general damages claim. NLFCS terminated the agreement with Westingmont after it sold its 5.2 ha of land in the former Sungai Tukang Estate in Sungai Petani, Kedah which Westingmont was entrusted with developing to KEDA Regional Development Authority for a mere RM2 million

In making the ruling, the judge agreed with the plaintiff’s submission that the actual development could only commence after all the proper approvals by the authorities were in place.

The defendant’s contention that Westingmont failed to carryout its end of the bargain by not developing the plot of land and thus was not entitled to any compensation was dismissed by the judge.

He agreed with the plaintiff’s submission that development could only begin after the initial approvals and a separate title was secured. In this case the failure to secure the preliminaries was not the responsibility of the plaintiff as per the agreement.

After failing to get adequate compensation for his loss of income and time from NLFCS, Westingmount, sued NLFCS for a total RM8 million.

 The case went to court in August 2010 but was interrupted by the defendant taking the matter to the court of appeal in vain to dismiss the plaintiff’s claim as frivolous among others. NLFCS was represented by S Surandren of Palani, Aishah & Co.

Outside the court, on hearing the decision the legal consultant who owns Westingmont by way of proxy was speechless. “I have given up a successful law career and went into this mess and I am happy that justice prevailed today,” he told reporters.