(iii) demonstrable failure to consider relevant evidence. [73] Given that the issue at present is about identifying situations where the findings of fact by a trial court justify appellate intervention, the other identifiable error of "material error of law" listed by Lord Reed in Henderson (supra) can occur when a trial judge erroneously apply legal principles (eg rules of evidence) in the course of making a finding of fact, thus resulting in a lack of judicial appreciation of evidence. For example, when a trial judge erroneously placed a burden of proof on a party, that will lead the judge to misdirect himself when he attempts to interpret the factual matrix before him. The commission of material error of law by the trial judge in arriving at his conclusions (eg, the requirement of proof of intention in constructive trust as opposed to express trust), also justifies an appellate court reversing such conclusions. [74] Thus, whilst there is a slight difference in approach of appellate intervention, both the UK Supreme Court and our Federal Court effectively shares a common thread where it has been held that appellate intervention is justified where there is lack of judicial appreciation of evidence. [75] The Court of Appeal in Singapore applies the plainly wrong test which is similar to our Federal Court, as illustrated in Damu Jadhao v. Paras Nath Singh [1965] CLJU 30; [1965] 1 LNS 30; [1976] 1 MLJ 151, when it held: The principles under which an appellate court acts when an appellant seeks to displace the conclusion arrived at by a trial judge on questions of fact have been very recently restated by the Privy Council in the case of Tay Kheng Hong v. Heap Moh Steamship Co Ltd [1964] CLJU 202; [1964] 1 LNS 202; [1964] MLJ 92 and [1965] 2 MLJ 151 at 153 need only refer to a passage of the judgment of Lord Guest when dealing with the matter, where he states: Before the Court of Appeal in Singapore was entitled to reject the trial judge's estimate of the credibility of the appellant and Goh Leh they would have to be satisfied that the trial judge's view was plainly wrong and that any advantage which he enjoyed by having seen and heard the witnesses was not sufficient to explain his conclusion. This case seems to me to be completely dependent on the trial judge's estimate of the credibility of the appellant and his witnesses and nothing that counsel for the appellant has put forward in his arguments before me has persuaded me that the trial judge's view of the credibility of the witnesses before him was in any way plainly wrong. [76] What is pertinent is that, the "plainly wrong" test is not intended to be used by an appellate court as a mean to substitute its own decision for that of the trial court on the facts. S/N kymO8krhkkmvPnUpXvhEGg [77] It is to be observed that this court in Tengku Dato' Ibrahim Petra Tengku Indra Petra (supra) had referred to McGraddie (supra ) and Henderson (supra ) and has adopted the Henderson (supra ) approach of the "plainly wrong" test in determining whether the trial court's findings of fact is reversible upon appeal: Recently in Henderson v. Foxworth Investments Ltd and Another [2014] 1 WLR 2600, the United Kingdom Supreme Court held that in the absence of some other identifiable error, such as a material error of law or the making of a critical factual finding which had not interfered with the factual finding which had no basis in the evidence, an appellate court should not interfere with the factual findings of a trial judge unless it was satisfied that the decision of the trial judge was "plainly wrong" in the sense that it could not reasonably be explained or justified and so was one which no reasonable judge could have reached, and that if the appellate court was not satisfied that the decision came within that category it was irrelevant that, with whatever degree of certainty, it considered that it would have reached a different conclusion from the trial judge. [78] Hence following this court's ruling in Tengku Dato' Ibrahim Petra Tengku Indra Petra (supra) an appellate court should not interfere with the factual findings of a trial judge unless it was satisfied that the decision of the trial judge was "plainly wrong" where in arriving at the decision it could not reasonably be explained or justified and so was one which no reasonable judge could have reached. If the decision did not fall within any of the aforesaid category, it is irrelevant, even if the appellate court thinks that with whatever degree of certainty, it considered that it would have reached a different conclusion from the trial judge. [79] The outcome of the present appeal would therefore turn upon whether the findings of the learned trial judge were reasonably made. ... [148] Given the aforesaid, we form the view that rather than adopting a rigid set of rules to demarcate the boundaries of appellate intervention insofar as findings of fact are concerned, the "plainly wrong" test as espoused in decisions of this court should be retained as a flexible guide for appellate courts. As long as the trial judge's conclusion can be supported on a rational basis in view of the material evidence, the fact that the appellate court feels like it might have decided differently is irrelevant. In other words, a finding of fact that would not be repugnant to common sense ought not to be disturbed. The trial judge should be accorded a margin of appreciation when his treatment of the evidence is examined by the appellate courts.” S/N kymO8krhkkmvPnUpXvhEGg See also Perembun (M) Sdn Bhd v. Conlay Construction Sdn Bhd [2012] 1 LNS 1416 (CA). [25] We will accordingly review Appeal 1293 followed by Appeal 1292 seriatim. [26] In respect of Appeal 1293 on the shortfall of payment of RM862,500.00 claimed by YTS, we observed that the Learned Judge has found as a matter of fact that the Oral Agreement was made gratuitously without consideration; hence YTS has no legal right to recover his alleged shortfall. [27] This is primarily a finding of fact, and the Court of Appeal is hesitant to interfere, as it is heavily dependent on the testimony of the rival witnesses from each party. It is trite that the Learned Judge is best placed to determine the credibility of the witnesses and to assess the relative weight to be given to their evidence. We thus defer to the findings of the Learned Judge on this aspect, particularly regarding the conflict in the witnesses' testimonies; see Abd Latif Sakimin v. PP [2009] MLJU 1828 (FC). [28] Additionally, we also noticed that the Oral Agreement as pleaded was made between Top 2 Global and Ibai Mas but not YTS. Thus, YTS as the stranger thereto cannot take benefit of the Oral Agreement and sue upon it. [29] That notwithstanding, we have scrutinised the relevant documentary evidence and testamentary explanation of witnesses and we are satisfied S/N kymO8krhkkmvPnUpXvhEGg that Top 2 Global has firstly paid RM401,625.00 towards redemption of 4 units terrace houses from Bank Rakyat pursuant to the loan of Ibai Leisure, secondly paid RM576,307.00 towards repayment to Malayan Banking Bhd pursuant to the loan of Ibai Mas and finally paid RM317,500.00 to YTS personally. These payments totalling to RM 1,295,432.00 were all done at the request of YTS. [30] As a result, albeit there is no legal right of entitlement for YTS arising from the Oral Agreement, we nonetheless find that Top 2 Global has, as a matter of fact, arithmetically paid all that was required to be paid to YTS, which has directly benefited him personally as well as indirectly in his capacity as a shareholder of Ibai Leisure and Ibai Mas. [31] In the premises, we find no appealable error on the part of the Learned Judge in Appeal 1293 that warrants appellate intervention. [32] As for Appeal 1292 on the issue of recovery of overpayment (by mistake) by Top 2 Global of RM145,432.00, it is plain that this is made up of the difference between the Sales Proceeds of RM1,150,000.00 and the aggregate amount of RM1,295,432.00 paid by Top 2 Global as elaborated in paragraph [27] above pursuant to the Oral Agreement. [33] We noticed that the Learned Judge did not doubt that RM1,295,432.00 was paid by Top 2 Global save for the two payments of RM10,000.00 and RM20,000.00 out of RM317,500.00 paid by Top 2 Global directly to YTS. S/N kymO8krhkkmvPnUpXvhEGg [34] We have accordingly carefully scrutinised the aforesaid two payments. From the documentary evidence as well as testamentary evidence of Wee Woan Jiuan, we find that the RM10,000.00 was paid in a single payment by Top 2 Global into YTS’s bank account on 16th February 2015; see exhibit D14. The other RM20,000.00 was paid in 6 separate payments of RM4,650.00, RM4,850.00, RM4,800.00, RM4,700.00, RM750.00 and RM250.00 into YTS’s bank account on 25th January 2017 totalling RM20,000.00. This has been admitted by YTS under cross examination. [35] We, however, find it inexplicable that the Learned Judge rejected these two payments totaling RM30,000.00 as an afterthought. No reasons were given by the Learned Judge is support of this conclusion. This in our view is a misdirection. [36] Furthermore, the Learned Judge did not provide any reasons whatsoever for rejecting the balance of RM115,432.00 (RM145,432.00 claimed minus RM30,000.00) [37] Consequently, we find that the Learned Judge was plainly wrong and erred in dismissing the counterclaim of Top 2 Global. In the circumstances, for the reasons stated above, we are satisfied that appellate intervention is warranted. S/N kymO8krhkkmvPnUpXvhEGg CONCLUSION [38] For the foregoing reasons, we dismiss Appeal 1293 and the order of the High Court in respect of the claim of YTS is affirmed. However, we allow Appeal 1292 and the order of the High Court in respect of the counterclaim of Top 2 Global is set aside. Hence, we enter judgment for Top 2 Global against YTS in the sum of RM145,432.00 with interest of 5% per annum from the date of filing of the Writ till full realisation. [39] We award global costs of RM 40,000.00 to Top 2 Global for both appeals here and in the High Court below. Dated this 7th April 2025 Sgd. LIM CHONG FONG JUDGE COURT OF APPEAL S/N kymO8krhkkmvPnUpXvhEGg LIST OF COUNSELS: Counsels for Top 2 Global & Wee Woan Jiuan