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Court of Appeal: Desa Samudra Sdn Bhd v Bandar Teknik Sdn Bhd
Real Estate and property - Commercial law - Company law - Tort of conversion and trespass to goods

Whether Clause 25(2) of the PAM Standard Form Building Contract of Malaysia is triggered causing an 
automatic termination of the main contract if the Contractor petitions the Court under Section 176(1) of the Companies Act, 1965 for approval of a scheme of composition with its creditors - Whether a restraining or moratorium order issued by the Court under Section 176(10) of the Companies Act in 
favour of the Contractor is proof of the making of a composition or arrangement‟ with creditors for the 
purpose of Clause 25(2) of the PAM Building Contract

Whether under the PAM Standard Form Building Contract possession of a project site reverts back to the Employer regardless of whether the termination of the contract is disputed by the Main Contractor - Upon the project site reverting to the Employer, could the Main Contractor under the PAM Contract consider itself released from the terms of the Contract and/or authorize the Sub-Contractors to enter upon the site and remove goods and materials without the consent of the Employer or the project Architect

Whether the torts of conversion and trespass to goods committed by several tortfeasors attract liability on a joint and several  basis for the total value of the goods or materials that are the subject matter of trespass and conversion - Whether the Court of Appeal could judicially base its decision on a disputed document that was not admitted into evidence by the trial court
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Source : Federal Court website
Date of  Judgment : Wednesday, 14 December 2011
Original Title : Desa Samudra Sdn Bhd v Bandar Teknik Sdn Bhd
Suit No : Civil Appeal No. 02() – 9 – 2011 (W)
Court : Court of Appeal
Quorum : Richard Malanjum, CJSS; Hashim Yusoff, FCJ; Abdull Hamid Embong, FCJ; (judgment delivered by Richard Malanjum, CJSS)
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