KUALA LUMPUR (Oct 6): The Court of Appeal has allowed an appeal by Lord-WBK Haulage Sdn Bhd against Shell Malaysia Sdn Bhd, overturning a High Court decision last year which awarded Shell RM6.65 million from the haulage company.

The three-member panel of judges led by Datuk Hanifah Farikullah and flanked by Datuk Lim Chong Fong and Datuk Azahari Kamal made their unanimous decision to overturn the High Court decision on Thursday, Oct 5.

This decision comes after Shell had initiated a suit against Lord-WBK Haulage over a service contract Shell had signed with Lord-WBK Haulage in 2008 for three years to provide haulage transportation services of petroleum for the Bagan Luar Installation (BLI) envelope and the Klang Valley Distribution (KVDT) envelope.

Around May 2010, following discussions and negotiations, Shell had reduced Lord-WBK Haulage’s scope of services by limiting it to the BLI delivery only due to alleged poor performance and breach of contract.

The BLI transportation services pursuant to the Service Contract was extended three times up to 2014.

In the High Court ruling on Aug 24, 2022, judge Datuk Ahmad Bache had ruled that Shell was right to reduce the scope of delivery for Lord-WBK because of the alleged poor performance and breach of contract.

In setting aside the High Court decision, the Court of Appeal bench held that there was no mention in the letter of negotiation and discussion reducing the scope of delivery on Shell’s right to claim additional costs, and accordingly there was no such entitlement.

However, the Court of Appeal maintained the High Court decision on the dismissal of Lord-WBK Haulage’s counter claim of RM43.48 million against Shell.

Lord-WBK Haulage was represented by Ranjan N Chandran, Datuk Abdul Hakem Abdul Arabi, Vinitha Laksmy Mohan and Nur Izlyn Qistina Anuar.

Shell was represented by Janet Chai and Jessie Yin.

Source
https://theedgemalaysia.com/node/685151