KK Supermart sues vendor of controversial socks, claims it was business sabotage

PETALING JAYA: KK Supermart has sued the vendor of the controversial socks for breach of contract, claiming that its business was sabotaged.

KK Supermart & Superstore Sdn Bhd filed the writ of summons through Messrs David Gurupatham & Koay at the Shah Alam High Court registry on Monday.

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

Soh is the director of Xin Jian Chang.

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In its statement of claim, KK Supermart said it had entered into a supply agreement with the second defendant on Dec 1, 2021.

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

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

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

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“At no time was permission given for this consignment with the corresponding bar code to be used for the 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, which is against the law,” it said.

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

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

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“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 the defendants had caused to sabotage its lawful business, and as a direct result, there was a public boycott of KK Supermart’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.

It is seeking at least RM1.5mil for loss of profits, RM10.5mil for the damage caused to its brand name and goodwill in the market, RM20.3mil for the aborted proposed (IPO) the stock exchange, aggravated, punitive or exemplary damages, as well as interest, cost and other relief deemed fit by the court.