Monday 25 March 2024

KK Mart sues its vendor ahead of today morning’s prosecution of directors of both firms

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KK Mart sues its vendor ahead of today morning’s prosecution of directors of both firms

KUALA LUMPUR, March 26, 2024: KK Mart has sued its vendor Xin Jian Chang Sdn Bhd for allegedly sabotaging the convenience store chain’s business by supplying it with Made-in-China socks bearing the word “Allah”.

The suit was filed ahead of today’s scheduled prosecution of both KK Mart directors and the vendor.

The Attorney-General’s Chambers (AGC) said in a statement the directors of KK Mart and vendor Xin Jian Chang Sdn Bhd would be charged this morning over the sale of socks bearing the word “Allah”.

It said the charges against KK Mart and its directors were for intentionally wounding the religious feelings of Muslims by selling socks with the word “Allah”.

Xin Jian Chang and its directors would be charged with abetting in the act as the suppliers of the socks.

No News Is Bad News reproduces below the related news reports:

KK Mart sues vendor over alleged sabotage

FMT Reporters

-25 Mar 2024, 09:42 PM

Xin Jian Chang Sdn Bhd and its owner, Soh Chin Huat, have been named as defendants.

KK Mart is seeking damages of more than RM32 million from Xin Jian Chang, including RM20 million lost from the aborted IPO, and RM10.5 million for the damage caused to its brand. (Facebook pic)

PETALING JAYA: KK Mart has sued vendor Xin Jian Chang Sdn Bhd for allegedly sabotaging the convenience store chain’s business by supplying it with socks bearing the word “Allah”.

Contacted by FMT, lawyer David Gurupatham confirmed that the suit has been filed, with Xin Jian Chang and its owner, Soh Chin Huat, named as defendants.

According to the statement of claim, KK Mart said “the defendants had caused sabotage of its lawful business”.

KK Mart said it had asked Xin Jian Chang to supply arm covers on a consignment basis, and that there was no permission or agreement on the display or sale of any kind of socks.

“The defendants were aware that on Feb 5, two of the three staff at the Bandar Sunway outlet did not turn up for work and there was only one worker who was at the cashier counter.

“The defendants were fully aware that they would be able to place these unlawful goods on the racks of the plaintiff’s shop without supervision. Under the circumstances above, the plaintiff could not have reasonably supervised the placement of the socks nor inspect the goods.

“The plaintiff’s records show that the first defendant placed the offending and unauthorised stocks on the rack on that day. The defendants have therefore deliberately interfered with the plaintiff’s business/trade,” said the statement of claim.

The company claimed that the vendor’s purpose was to tarnish KK Mart’s reputation ahead of a proposed listing through an initial public offering (IPO).

It said the supplier’s alleged sabotage has led to a public boycott, hate messages against KK Mart, threats of violence, and negative social media comments, which led to “irretrievable harm, loss and damage”.

KK Mart and Xin Jian Chang signed a contract on Dec 1, 2021, with KK Mart agreeing to sell the vendor’s goods on a consignment basis.

The convenience store chain contended that the supplier had a contractual obligation and duty of care to ensure that the goods supplied were in line with the contract’s terms, including that the products complied with the Sales of Goods Act 1957.

“The defendants owed a duty of care to the plaintiff by virtue of the warranties as a supplier to ensure that the plaintiff will not suffer loss as a consequence of the defendants’ negligence and/or reckless act.

“They breached the duty of care as pleaded above, by their actions and/or omissions. The defendants ought to have had reasonable contemplation of being affected by the defendants’ negligence.

“By reason of the defendants’ negligence and/or reckless act, the plaintiff has suffered direct loss and economic loss,” it said.

KK Mart is seeking more than RM32 million in damages from Xin Jian Chang, including more than RM20 million lost from the aborted IPO, and RM10.5 million for the damage caused to its brand.

It also wants RM1.5 million for every week from the date of the judgment on the suit for losses of profits in its business.


AGC confirms directors of KK Mart, vendor to be charged tomorrow

FMT Reporters

-25 Mar 2024, 08:17 PM

The parties will be charged with intentionally wounding the religious feelings of Muslims by selling socks with the word ‘Allah’.

KK Mart and Xin Jian Chang and their directors will be charged at the Shah Alam sessions court tomorrow morning.

PETALING JAYA: The Attorney-General’s Chambers (AGC) has confirmed that the directors of KK Mart and vendor Xin Jian Chang Sdn Bhd will be charged tomorrow over the sale of socks bearing the word “Allah”.

In a statement, the AGC said the charges will also be against the two companies.

It said the charges against KK Mart and its directors are for intentionally wounding the religious feelings of Muslims by selling socks with the word “Allah”.

Xin Jian Chang and its directors will be charged with abetting in the act as the suppliers of the socks.

The parties will be charged at the Shah Alam sessions court tomorrow morning under Sections 298 and 109 of the Penal Code, respectively.

Section 298 provides for imprisonment of up to one year, a fine, or both, upon conviction, while Section 109 provides that abettors will receive the same punishment prescribed by the principal offence.

Earlier, police informed the media that Bukit Aman’s classified crime unit will file the charges at 9am.

KK Mart’s founder, KK Chai, made a tearful apology over the issue at a press conference on March 16. He was joined by the company’s top management and Xin Jian Chang’s owner Soh Chin Huat. They said the socks were imported from China.

Multiple police reports were lodged against KK Mart, while Umno Youth chief Dr Akmal Saleh has called for a public boycott of the convenience store’s outlets. Xin Jian Chang’s factory in Batu Pahat has also been temporarily closed.

The Yang di-Pertuan Agong, Sultan Ibrahim, also expressed his displeasure over the controversy and called for stern action to be taken against those responsible.

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