The Kuala Lumpur High Court today dismissed a contractor’s bid for an interim injunction in a suit to prevent the termination of the Klang Valley Double Tracking Phase 2 (KVDT2) rail project.
Judge Aliza Sulaiman dismissed the application by Dhaya Maju LTAT Sdn Bhd during open court proceedings this morning.
Yesterday, Malaysiakini reported that today was set for the hearing of the company's application for the temporary injunction against the two main defendants - the Perikatan Nasional (PN) federal government and Transport Minister Wee Ka Siong.
The company is seeking the interim injunction order to maintain the status quo between parties pending disposal of the main suit to prevent the cancellation of the KVDT2 project.
On Aug 31, Dhaya Maju LTAT reportedly said that the PN government had no basis to terminate the existing contract for the project.
The project came into the spotlight after Finance Minister Tengku Zafrul Abdul Aziz revealed 101 contracts that were purportedly awarded through a direct negotiation process during the time Pakatan Harapan was in power.
KVDT2 was the largest in terms of value on the list.
In August, Wee said the government will reopen the KVDT2 project tender for fresh bidding.
During the proceedings today, Aliza ruled that the court did not see the need to hear the interim application against the government and Wee based on previous legal precedents of case law at the Federal Court.
She then dismissed the application and ordered costs fixed at RM10,000 to be paid by the company.
Dhaya Maju LTAT's counsel Cecil Abraham then informed the court that they would be appealing today’s decision at the Court of Appeal.
During submissions, Abraham said that the interim injunction application should be allowed as there were serious issues that needed to be heard through the main suit.
He submitted that there was a need to maintain the status quo between parties pending disposal of the main legal action.
“In regard as to whether there is a serious question to be heard, I submit there is an (alleged) prima facie case of breach of contract,” the senior lawyer said.
“All we ask for is for an interlocutory injunction, pending the inter partes hearing (of the main suit),” he added.
However, senior federal counsel Asliza Ali counter-submitted that the court had no authority to issue an injunction order to restrain the government from performing its public duty.
“Here, it involves a public duty of the government. This double-tracking project concerns public interest,” said Asliza, who represented the two defendants.
Abraham then submitted that the interim injunction application did not seek to restrain the government from performing its statutory or public duty.
He said that instead, the application sought a temporary injunction to restrain a potential breach of contractual duty linked to the KVDT2 project.
Yesterday, Malaysiakini reported that the company’s legal action sought a declaration that “there exists a valid and binding contract between the plaintiff and the first defendant by way of the 'Surat Setuju Terima' dated Aug 19, 2019 (the contract)”.
The plaintiff is seeking a declaration that “any termination or cancellation of the contract by the first and/or the second defendant will be invalid, unlawful and wrongful”.
Dhaya Maju LTAT is seeking an injunction against the two main defendants - the PN government and Wee - to restrain and prevent them "from acting or taking any steps in connection with any cancellation or termination of the contract" and other reliefs. - Mkini
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