KK Super Mart sues socks vendor for over $8.8 million

KK Super Mart is seeking RM10.5 million for the damage caused to its brand name and goodwill in the market, among other damages. ST PHOTO: AZRIL ANNUAR

PETALING JAYA – KK Super Mart has sued the vendor of the socks bearing the word “Allah” for breach of contract, claiming that its business was sabotaged.

KK Supermart & Superstore filed the writ of summons through law firm David Gurupatham & Koay at the Shah Alam High Court registry on March 25.

It named Mr Soh Chin Huat, 61, and Xin Jian Chang – a private limited company based in Batu Pahat, Johor – as the first and second defendants respectively.

Mr Soh is the director of Xin Jian Chang.

In its statement of claim, KK Super Mart said it had entered into a supply agreement with Xin Jian Chang on Dec 1, 2021.

The convenience store chain said it agreed to the defendants’ request to sell goods on consignment on its premises, and by virtue of the agreement, the defendants then owed contractual obligations and a duty of care to ensure that the supplied goods are lawful.

On Feb 5, Xin Jian Chang applied to supply arm covers at the plaintiff’s outlets and this was agreed upon on consignment basis.

The plaintiff claimed it had given permission for an item described as “cotton/nylon arm cover” and priced at RM6.99 (S$2).

“At no time at all was permission given for this consignment with the corresponding barcode to be used as display or sale of socks of any nature or form.

“The defendants negligently or recklessly put for sale the socks bearing the word ‘Allah’ without the plaintiff’s knowledge or consent at the plaintiff’s premises in Bandar Sunway, Selangor, which is against the law,” it said.

This action, it claimed, had caused irreparable damage and loss to KK Super Mart.

It also claimed to have records that showed Mr Soh placing the offending and unauthorised stocks on its rack on Feb 5, therefore deliberately interfering with its business.

“The defendants predominant purpose for unlawfully interfering with the plaintiff’s trade and business was to destroy the plaintiff’s good name and reputation in the business world, and to ensure that the plaintiff’s plan for a proposed listing of KK Mart by way of an initial public offering (IPO) would not take place, thereby causing the plaintiff’s business to completely fail,” it stated.

It further claimed that the defendants had caused to sabotage its lawful business and as a direct result, there was a public boycott of KK Super Mart’s outlets nationwide, numerous hate messages, threats of violence and negative social comments, causing the plaintiff to be unable to conduct its business.

The plaintiff is seeking a court declaration that the defendants have unlawfully interfered with its business and an order to indemnify the plaintiff for whatever liability caused by the defendants’ actions.

Among other damages, it is seeking at least RM1.5 million for loss of profits, RM10.5 million for the damage caused to its brand name and goodwill in the market and RM20.3 million for the aborted IPO on the stock exchange, as well as interest, cost and other relief deemed fit by the court. THE STAR/ASIA NEWS NETWORK

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