05-08-2025
- Business
- New Straits Times
Court upholds RM1.04mil award against lift contractor over faulty work at Johor school
PUTRAJAYA: A lift contractor has failed in its bid to overturn a High Court decision ordering it to pay RM1,045,294.80 in damages to an international school over delayed and defective lift works at its Johor Baru campus.
A three-member Court of Appeal bench, chaired by Datuk Supang Lian, unanimously dismissed MS Elevators Engineering Sdn Bhd's appeal, finding no merit in its challenge against the earlier decision in favour of Fairview International School Nusajaya Sdn Bhd.
The other members of the bench were Datuk Azmi Ariffin and Datuk Ismail Brahim.
In the judgement dated yesterday, Azmi said MS Elevators had breached its contract and failed to deliver functional and safe lifts by the stipulated deadline of Feb 28, 2015.
According to court documents, the school had awarded MS Elevators a RM566,000 contract in July 2014 for the supply, installation, testing, and commissioning of three lifts at its Johor Baru campus.
Under the Letter of Award (LOA), the contractor was required to complete the work within six months, with a liquidated ascertained damages (LAD) clause of RM10,000 per day for any delay.
However, the lifts were only certified by the Department of Occupational Safety and Health (DOSH) on June 2, 2015 — 94 days after the deadline — and were subsequently found unsafe.
Incidents included schoolchildren being trapped in a lift and dignitaries being forced to walk up seven floors during school events.
The court ruled that the school was entitled to LAD amounting to RM940,000 and RM70,294.80 in rectification costs incurred when third-party contractors were hired to repair and make the lifts safe for use.
The court also affirmed the lower court's decision to award a nominal sum of RM35,000 for loss of student intake due to the unavailability of the upper floors.
The appellate court held that MS Elevators had no legal basis to suspend works or refuse to rectify the defects unless payments were made, noting that no valid payment certification had been issued by the project consultants.
The court also dismissed the company's counterclaim for RM387,908.60 for alleged outstanding payments, citing its failure to complete works as per the contract or obtain proper certification.
In affirming the High Court's findings, the Court of Appeal emphasised that MS Elevators had neither applied for a valid extension of time nor complied with the contractual procedures.
"There was no written notice given by the company to seek an extension of time.
"They had the contractual right to do so if they believed the school's actions or omissions had caused delays.
"The company cannot now turn around and blame the school for its unwarranted delay.
"The defendant must live with the consequences of its fault," the court said.
The court also awarded RM25,000 in costs to the school.
