The two met moments before the Islamist party leader was seen with the deputy prime minister and other Barisan Nasional VIPs at a briefing on earthquake rescue operations.
Lim approached Hadi to shake hands before both went separate ways. Neither spoke to each other, according to a DAP member that Malaysiakini contacted.
The news portal quoted Sabah DAP political education director Ginger Phoong who was there: "Not a word was exchanged between the two".
Lim was in the area as part of a DAP earthquake relief drive.
It is not clear what Hadi is there for, but the PAS president was then seen with Muhyiddin's entourage that was attending a briefing on rescue operations for people stranded on Mount Kinabalu following an earthquake on Friday.
Lim and Hadi's awkward exchange comes after PAS's 61st muktamar or annual congress ended yesterday, where the PAS president continued a strident tone against critics, including DAP, who have accused him of being conciliatory towards arch political foe, Umno.
The PAS muktamar also passed a resolution without debate from the floor to cut ties with DAP, in response to the DAP's decision in March to cease working with Hadi, while maintaining ties with the rest of PAS.
The motion prompted Lim to announce yesterday that PR was dead, and all that was left was for "funeral rites" to be conducted.
Both parties, who are allies in the opposition Pakatan Rakyat (PR) pact, have been on a collision course over Hadi's unilateral leadership and insistence on carrying out agendas that are not part of PR's common goals, such as implementing hudud or the Islamic penal code.
PAS has said that it is still part of PR, and that its motion to cut ties with DAP is still subject to final approval by the PAS central committee and Shura Council.
Eyebrows have been raised over Hadi's meeting with Muhyiddin at the Kinabalu National Park today, despite claims that their presence in the same place was merely coincidental.
- TMI
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