Case Update: Court Of Appeal Awards Reasonable And Appropriate Loss Of Profits In Wrongful Disconnection Of Electricity Case

• Published date: 20 January 2023
• Subject Matter: Litigation, Mediation & Arbitration, Energy and Natural Resources, Oil, Gas & Electricity, Trials & Appeals & Compensation
• Law Firm: Zul Rafique & Partners
• Author: Zul Rafique & Partners

CIVIL PROCEDURE
Public Utilities - Electricity - Wrongful Disconnection - Damages - Losses of Stock - High Court - Misdirection - Appeal

Karun Klasik Sdn Bhd v Tenaga Nasional Berhad
Civil Appeal No. W-02(IM)(NCC)-09-05/2020|Court of Appeal
- see the grounds of judgment here

Facts Karun Klasik Sdn Bhd (the 'Appellant') carried on business at a factory located on its premises which processes and freezes prawns mainly for export. Tenaga Nasional Berhad (the 'Respondent'), after carrying out an inspection on the Appellant's premises issued a 24 hours' notice to disconnect the Appellant's electricity supply. The Appellant denied tampering with the meter and pleaded for the Respondent not to disconnect its electricity. Nevertheless, the Respondent proceeded to disconnect the electricity supply for a period of 13 days before it was reconnected. Before and after the Respondent's disconnection, express notice was given to the Respondent that the Respondent's disconnection of electricity will cause the Appellant's factory operations to stop and cause the products stored in the Appellant's cold room to spoil or rot. Subsequently, the Respondent filed a suit against the Appellant for back billing charges due to meter tampering at the Appellant's premises. The Appellant in turn counterclaimed for loss of business profits allegedly suffered as a result of the disconnection of electricity supply. The High Court dismissed both claims. The Appellant then appealed against the dismissal while the Respondent choose to not appeal against the dismissal but only cross-appealed against the Appellant's appeal. The Court of Appeal dismissed both the appeal and cross-appeal. However, at the Federal Court, the Appellant's appeal on its counterclaim was allowed and the Federal Court found the Respondent liable for wrongfully disconnecting the Appellant's electricity and ordered the High Court to assess damages payable by the Respondent. In assessing the damages, the High Court ordered no award for special damages and awarded a nominal sum of RM1,000.00 as general damages. Aggrieved with the decision, the Appellant appealed to the Court of Appeal. Hence, this appeal.

Issue Whether the Learned High Court Judge had erred in her finding as a...