Federal Court allows Pelorus to sue former JV partners for unpaid funds
The Federal Court ruled that Pelorus Holding can pursue Jaffa Roger Dawkins, Rabiatul Adawiyyah Mohamad and Harris Luqman Group for money owed under their joint venture agreement.
The Federal Court, with Chief Justice Wan Ahmad Farid Wan Salleh and judges Collin Lawrence Sequerah and Azimah Omar, upheld Pelorus Holding Sdn Bhd's appeal to sue its former joint venture partners directly. The court found that the joint venture agreement was deliberately structured to bind the individuals personally, not merely the incorporated venture, Pelorus HLG Sdn Bhd. Pelorus sought recovery of RM1.19 million it said was diverted to Harris Luqman Group and RM1.21 million advanced for an Agrobank loan, claims that the court allowed.
A claim for RM516,972 was rejected as insufficiently substantiated, but a RM1 million claim based on personal guarantees was accepted. The respondents were also ordered to cover RM100,000 in legal costs. Legal teams for Pelorus and the respondents presented their arguments before the bench.
Why it matters
The ruling clarifies that parties to a joint venture can be held personally liable for contractual breaches, affecting future JV structures.
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