Federal Court rules JV partner can sue ex-partners to recover money
The apex court allows Pelorus Holding Sdn Bhd’s appeal against Jaffa Roger Dawkins, Rabiatul Adawiyyah Mohamad and Harris Luqman Group Sdn Bhd.
The Federal Court ruled that a business partner can sue former joint venture partners to recover misused funds. Pelorus Holding Sdn Bhd's appeal against Jaffa Roger Dawkins, Rabiatul Adawiyyah Mohamad, and Harris Luqman Group Sdn Bhd was upheld. The court stated that Pelorus was enforcing its contractual obligations under the joint venture agreement, not claiming money from the joint venture company itself.
The joint venture had involved livestock supply, farming, abattoir operations, and meat products. Pelorus claimed RM1.19 million had been diverted to Harris Luqman Group and RM1.21 million had been advanced to settle Agrobank loan. The Court of Appeal had previously ruled that the money belonged to the joint venture company, but the Federal Court disagreed, stating Pelorus was a contracting party claiming its due under the JVA.
The court dismissed Pelorus' RM516,972 claim as improperly substantiated, but allowed the RM1 million claim based on personal guarantees. Defendants were ordered to pay RM100,000 in costs.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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