Developer wants to settle lawsuit over Melaka Gateway coastal project

The legal action involving a developer, KAJ Development Sdn Bhd and the Malacca state government over the termination of the Melaka Gateway coastal reclamation project will likely be resolved out of court.

The matter was told to reporters by senior federal counsel Ahmad Hanir Hambaly, who was representing the state government after the case came up before a three-judge panel of the Federal Court chaired by Court of Appeal president Rohana Yusuf today.

The other judges on the bench were Abdul Rahman Sebli and Datuk Mary Lim Thiam Suan. The hearing of the company’s application for leave to appeal was fixed for today.

Ahmad Hanir said KAJ Development’s counsel Loh Siew Cheang applied for an adjournment of today's proceeding and informed the panel that his client wanted to settle its case.

He said he did not oppose the adjournment.

The court then fixed May 19 to hear the case.

KAJ Development is appealing against the Court of Appeal’s decision on April 9 last year of dismissing its application to obtain leave to initiate a judicial review.

On Feb 17 last year, the Malacca High Court dismissed KAJ Development's application to obtain leave to have the full merits of the judicial review heard, ruling that there was no public law element involved in the state's decision.

On Dec 4, 2020, the company filed the judicial review application against the state government after its agreement with the state government was terminated.

The company entered into an agreement with the Malacca government on Oct 4, 2017, to reclaim the state’s coastal land and islands.

KAJ Development is seeking a court order to quash the state government's order to issue the notice of termination dated Nov 11, 2020.

The company also wants a declaration that the termination notice is null and void, as it violates Section 7 and 9(1) of the Temporary Measures to Reduce the Impact of the Covid-19 Act and another declaration that the termination is illegal and unlawful.

Melaka Gateway is a mixed development project worth RM43 billion, consisting of three new islands.

- Bernama