JUDGMENT

Zaleha Yusof FCJ:

Background Facts

[1] This appeal arose from an assessment of damages proceeding, the decision of which entails a question as to whether a court may lawfully depart from what has been agreed by the parties in their contract to have a mutually appointed expert to determine expenses or damages as a means of independent valuation.

[2] The appellant is a company operating a flight academy which conducts flight training, flight simulator training and aircraft rental.

[3] At the request of the respondents, the appellant and the 1st respondent entered into two agreements which inter alia, required the appellant to provide and carry out flight training courses for the respondents' trainees and the respondents were to send a certain number of trainees to attend the appellant's training courses by batches. The respondents failed to send the required number of trainees as agreed. As a result, the appellant was forced to end the training courses early as it could not afford to bear the cost due to the insufficient numbers.