Malaysia

TNB wins appeal to set aside RM4 mil damages over power outage

Court rules steel manufacturing firm could not claim compensation based on pure economic loss

Updated 3 years ago · Published on 29 May 2023 4:57PM

TNB wins appeal to set aside RM4 mil damages over power outage
Southern Steel Bhd had filed a suit against Tenaga Nasional Bhd alleging that the utility company failed to supply electricity to its factory premises over a one-week period from August 26, 2008 to September 1, 2008. – ABDUL RAZAK LATIF/The Vibes file pic, May 29, 2023

PUTRAJAYA – Tenaga Nasional Bhd (TNB) has won its appeal to set aside a high court order for it to pay RM4 million in damages to a steel manufacturing company for alleged negligence over the disruption of electricity supply to its factory premises.

A three-member panel of the Court of Appeal comprising justices Datuk Abdul Karim Abdul Jalil, Datuk Abu Bakar Jais and Datuk M. Gunalan allowed TNB’s appeal to set aside the high court’s decision after ruling that TNB could not be held liable for Southern Steel Bhd’s (SSB) claim.

It also set aside the high court’s order for UEM Construction Sdn Bhd to indemnify TNB amounting to RM2 million in respect of TNB’s liability to SSB.

In the Court of Appeal’s grounds of judgment dated May 3 this year, justice Abu Bakar said SSB’s claim for damages for tort of negligence could not stand as it was based on pure economic loss.

“Looking at the pleading, it could not be denied that the relief sought by SSB was not for financial loss due directly to physical damage to SSB’s property,” he said, adding that the court would be minded to allow damages for SSB if the company had pleaded for physical damage as a result of disruption of electricity supply.

Justice Abu Bakar said there was no obligation on TNB to pay RM4 million in damages to SSB. He also said since TNB is not liable to SSB, the order by the high court against UEM Construction to indemnify TNB must also be set aside.

The panel also dismissed SSB’s appeal against the quantum of damages awarded to them by the high court. SSB had claimed for over RM8 million in general damages and/or special damages against TNB.

SSB filed a suit against TNB alleging that the utility company failed to supply electricity to its factory premises over a one-week period from August 26, 2008 to September 1, 2008.

The company claimed that they could not produce steel and suffered losses due to the power cut.

Meanwhile, TNB brought in UEM Construction as a third party in SBB’s lawsuit to bear any liability as TNB claimed that UEM Construction had caused the failure of electricity supply to SSB.

TNB claimed that the electricity supply stoppage was due to negligence of the third party when they were carrying out construction work that caused damage to the TNB cables that supplied electricity to the SSB premises.

In 2015, the high court allowed SSB’s claim against TNB and ordered the utility company to pay RM4 million in damages to SSB.

It also allowed TNB’s claim against UEM Construction and ordered UEM Construction to bear half of the RM4 million after finding the company to be 50% contributory negligence to the accident that caused damage to TNB cables which directly resulted in disruptions to the electricity supply to SSB factory premises. – Bernama, May 29, 2023

Related News

Malaysia / 1mth

Court of Appeal: Emergency proclamations beyond judicial review

Malaysia / 3mth

Family takes issue of government responsibility in Altantuya's death to Federal Court

Malaysia / 4mth

Court of Appeal rejects Najib’s bid to reinstate RM1.9m civil suit against Tommy Thomas

Malaysia / 8mth

TNB staff killed after high-powered bike crashes into MPV

Malaysia / 10mth

Court dismisses ex-AG special officer’s appeal in lawsuit against Rewcastle-Brown

Malaysia / 11mth

Electricity tariff review won’t affect university students – TNB

Spotlight

Business

Tycoon Vincent Tan trims BCorp stake further in RM115m share sale

Malaysia

UMNO’s solo gamble in Johor: A show of strength or risky miscalculation?

By The Vibes Says

Malaysia

Nik Aziz’s grandson allegedly slapped by senator: Father ready to take case to court

Malaysia

Lorry driver jailed a day, fined for making obscene gestures, dangerous driving (video)

Malaysia

PKR leader defends MyKhas access suspension for PJ, Subang MPs, cites ‘political choices’

Opinion

Social media set to dominate Johor polls as election kingmaker

Malaysia

Man charged in Butterworth parang attack case that left victim fearing permanent disability

Malaysia

Teen mothers must return to school, says Fadhlina as education remains priority

Malaysia

Penang water tariffs to increase from July 1 after year-long deferment

You may be interested

Malaysia

PKR leader defends MyKhas access suspension for PJ, Subang MPs, cites ‘political choices’

Malaysia

Fadillah warns of finite fossil fuels, global volatility and rising demand

Malaysia

Nik Aziz’s grandson allegedly slapped by senator: Father ready to take case to court

Malaysia

Motorcyclist killed after collision with 4WD in Papar; abandoned vehicle later found burnt

Malaysia

NS election speculation intensifies as Aminuddin granted audience with state ruler

Malaysia

Press conference cancelled as MB has 'important business'

Malaysia

Retiree loses nearly RM100k in TikTok investment scam after fraudsters target pension savings

Malaysia

Govt prioritises effective administration over early election talk - Anwar