Perlis Umno settles breach of contract suit filed by rice cooker vendor

  • Nation
  • Friday, 24 Aug 2018

KUALA LUMPUR: An electrical appliance vendor has withdrawn her suit against Arau MP Datuk Seri Dr Shahidan Kassim and two others for breach of contract over the purchase of rice cookers said to be meant for distribution in three Perlis constituencies.

This was after Shahidan, Perlis Umno secretary Datuk Zahidi Zainul Abidin and Perlis Umno treasurer Datuk Rozabil Abdul Rahman made payment for all the 8,000 units of rice cookers during a proceedings in chambers before High Court judge Justice Wan Ahmad Farid Wan Salleh on Friday (Aug 24).

When contacted, counsel Lavinia Kumaraendran, who acted for vendor Florence Lee Jye Wen, said the three defendants had settled the matter by making payment.

The court also ordered them to pay RM15,000 in costs.

Lavinia said they sued the three over 8,000 units of rice cookers, and initially, in the middle of the year, the trio paid for the 2,000 units and took delivery.

"They paid the balance for the 6,000 units last week and delivery will be done by Sept 7. As they paid for all 8,000 units, the suit has now been withdrawn, but they have to bear the cost of RM15,000 additionally," said Lavinia, who was assisted by Cassandra Lee.

Lee, through an electrical appliance dealer, had named Shahidan, Zahidi and Rozabil Abdul Rahman as the first, second and third defendants each.

She said a sales representative approached her on May 15, 2015 saying that Perlis Umno wanted to buy 60,000 units of 1.8L rice cookers.

In her statement of claim filed on April 6, 2017, she said she was also informed that Perlis Umno required the rice cookers to bear the approved Perlis Umno logo and Shahidan's initials "DSSK".

The plaintiff claimed she received an official letter from Perlis Umno on June 3, 2015 stating that Shahidan, who is state liaison committee chairman, had unanimously decided to buy the rice cookers at the price of RM74 per unit.

The letter came with a purchase order from Perlis Umno for 10,000 1.8L rice cookers bearing the said logo for RM740,000 signed by its secretary Kamarudin Abdul.

The letter said Arau, Kangar and Padang Besar constituencies were supposed to receive 20,000 rice cookers each.

Lee claimed that at all material times, she had only agreed to the price of RM74 per unit on the premise that the party would be buying 60,000 rice cookers.

She said the total value of the agreement dated June 3 was RM4.44mil, being the sum for the purchase of the 60,000 units at RM74 each.

Lee said she proceeded to place the orders for 10,000 rice cookers and prepared the stickers for the logo.

The plaintiff alleged that she delivered a total of 2,000 units on Oct 23, 2015, Jan 19 and April 6, 2016, following instructions by the first defendant and/or Perlis Umno to its Kubang Gajah service centre, in Arau, Perlis.

She said after the delivery, Perlis Umno failed to instruct the delivery of the remaining 8,000 units and had also failed to pay the RM592,000 balance owed.

Lee said she was unable to sell the 8,000 units to a third party to mitigate her loss as the rice cookers had the Perlis Umno logo and the first defendant's initials affixed.

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