Key takeaways
A Shah Alam High Court judge ordered KDE Recreation Berhad to pay RM10,000 in legal costs to 30 club members for failing to disclose a separate winding-up application. The court ruled that this omission caused unnecessary expenses and violated a basic duty of candour during the ongoing litigation.
- KDE Recreation Berhad was ordered to pay RM10,000 in legal costs to 30 club members.
- The court found the company failed to disclose a separate application to wind up the club's interest scheme.
- The judge stated parties have a duty to disclose material information that could affect legal proceedings.
Summarised automatically by AI from the original article by New Straits Times. AI can make mistakes, so check the original for details.
KUALA LUMPUR: The operator of Kelab Darul Ehsan (KDE) has been ordered to pay RM10,000 in legal costs to 30 club members for failing to disclose a separate application to wind up the club's interest scheme.
Shah Alam High Court judicial commissioner Datuk Donald Joseph Franklin ruled that KDE Recreation Berhad's failure to inform the members and the court had caused them to incur unnecessary legal expenses.
He said the company should have disclosed the winding-up proceedings as their outcome could affect the members' lawsuit.
Franklin said parties had a duty to disclose material information that could affect legal proceedings, even in the absence of a specific legal or contractual obligation.
