Appeals court grants KVDT2 contractor interim order, pending injunction hearing

 

Dhaya Maju-LTAT Sdn Bhd says the termination of its Klang Valley Double Tracking Phase 2 contract is illegal, unlawful and a violation of a prior settlement agreement.

PUTRAJAYA: The Court of Appeal today allowed contractor Dhaya Maju-LTAT Sdn Bhd to get an interim order until July 26 against the termination of its Klang Valley Double Tracking Phase 2 (KVDT2) contract, pending a hearing for an Erinford injunction.

Judge Kamaludin Md Said granted the temporary order after senior federal counsel Asliza Ali, appearing for the government and transport minister Wee Ka Siong, said they have no objection against it.

Other judges who sat with Kamaludin were Lee Heng Cheong and Che Mohd Ruzima Ghazali.

The company’s lawyer Ashok Kumar Mahadev Ranai earlier told the court that the appeals court would only hear their Erinford injunction application on July 26.

“It is important for an interim order to be granted now or else the Erinford application will be rendered nugatory,” he said.

The company sued the government last year, seeking to declare the termination illegal, unlawful and a violation of a settlement agreement both parties had previously entered into.

Dhaya Maju-LTAT said the government had no basis to terminate the contract on grounds of public interest.

It alleged that Wee had an “ulterior and improper intention” to terminate the contract.

Besides the government and Wee, consultant firm Opus Consultants and Keretapi Tanah Melayu Bhd (KTMB) were named in Dhaya Maju-LTAT’s lawsuit.

KTMB’s lawyer Sean Yeow told the court that they objected to the interim order.

However, Kamaludin said they will only hear arguments on July 26, and not today.

“There is also an issue on Section 29 of the Government Proceedings Act that has never been decided before the Federal Court.

“This needs to be argued,” he added.

Earlier this month, the High Court turned down Dhaya Maju-LTAT’s application to secure an injunction against the government and Wee following the government’s decision to terminate the contract.

Trial judge Lim Chong Fong said no injunctions could be issued against the government and its officers from carrying out their duties, as stipulated in Section 29.

However, the judge granted an Erinford injunction to maintain the status quo of the case. - FMT