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Thursday, September 14, 2017

Rosmah, 1MDB apply to strike out 'pink diamond' suit



Lawyers representing Prime Minister Najib Abdul Razak's wife Rosmah Mansor and 1MDB have applied to strike out a suit by former Umno man Khairuddin Abu Hassan, who is seeking the return of a pink diamond necklace worth US$23 million.
This was related to High Court deputy registrar A Pavani when the matter came up for case management this afternoon.
Lawyer Syed Iskandar Syed Jaffar Al Mahdzar, who is representing Khairuddin, told Malaysiakini he received Rosmah's application to strike out the suit and for a stay of proceedings on Sept 12.
The application from 1MDB was received today.
“The filing of the application to strike out the suit is against normal court rules as it has to be filed within 14 days,” he said.
The lawyer also claimed that the reasons cited in the application were flimsy.
At the same time, Syed Iskandar said, Pavani allowed his client's application to serve the suit to businessperson Jho Low via substitute service after three unsuccessful attempts.
The lawyer said they went to Jho Low's house on three occasions. On the first attempt, there was nobody at home. On the second occasion, there were only two domestic helpers who declined to accept the document. The third attempt had also proved unsuccessful.
“Following this, the court allowed our application for the suit to be advertised in one English and in one Chinese newspaper and for the document to be pasted in court,” Syed Iskandar added.
Khairuddin filed the suit on Aug 15 in which he named Rosmah, Jho Low, and 1MDB as defendants for the return of the pink diamond necklace.
Lawyer Mohd Hafarizam Harun and Yazid Mustakim Roslan appeared for Rosmah while Cains Tan represented 1MDB.
The pink diamond necklace was mentioned in the United States Department of Justice (DOJ) civil forfeiture suit related to 1MDB.
The documents alleged that Jho Low had procured the necklace for the wife of Malaysian Official 1 (MO1).
Minister in the Prime Minister's Department Abdul Rahman Dahlan had confirmed that MO1 was Najib.
However, Rahman said since the documents did not name Najib, the prime minister was not being investigated.
‘Summons not delivered properly’
Among the reasons cited by Hafarizam in the striking out application are that the writ and its delivery were defective and that Khairuddin does not have locus standii to initiate the suit.
He also said that the suit failed to provide specific details for the cause of the action and that it was a misjoinder, given that Khairuddin filed the suit and not 1MDB.
Following this, Pavani ordered that both parties submit their replies on the striking out of the application and stay. She fixed Nov 9 for further case management.
It was reported that Khairuddin named Rosmah, Low and 1MDB as defendants in the suit, which claims that Low went through agent Eric Tan, sometime between June 2013 and March 2014, to purchase the necklace from Lorraine Schwartz in New York at the sum of US$27.3 million.

Khairuddin claimed that the necklace was given to Rosmah, sometime in March 2014, and that it should be returned to 1MDB, along with the return of the money Low allegedly misappropriated from the state fund.
He added that since Rosmah gave no consideration to the said necklace, she has no title in law or equity to it, meaning that 1MDB is entitled to have it back.
“Although the jewellery, in law, belongs to 1MDB, it will not bring any suit or proceeding against Rosmah because it is under the control of Najib, who will not permit any action to be brought,” Khairuddin said in his statement of claim. - Mkini

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