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10 APRIL 2024

Wednesday, March 30, 2022

Kayveas ordered to surrender shares, building to public trustee

The High Court today ordered the Wisma MyPPP building to be vacated and handed over to the director-general of the insolvency department. (Reuters pic)

KUALA LUMPUR: The High Court has ordered former MyPPP president M Kayveas and his company, Kayveas Holdings Sdn Bhd, to hand over 100,000 units of their shares in Bintang Iradat (M) Sdn Bhd and the Wisma MyPPP in Jalan Kampung Attap here, to the director-general of the insolvency department.

Bintang Iradat is a company formed as the investment and corporate entity acting on behalf of MyPPP.

Lawyer Gavin Jay Anand Jayapal, representing 12 former MyPPP members as plaintiffs, said the order was made by judicial commissioner Ong Chee Kwan today after allowing part of his clients’ suit against Kayveas, six other individuals, two companies, including Kayveas Holdings, and the insolvency department for allegedly transferring the building ownership without consent.

The department, which was appointed to administer MyPPP’s assets following the party’s deregistration on Jan 14, 2019, was sued in its nominal capacity.

“The court ruled that the consent order obtained by A Chandrakumanan (the fourth defendant) and Ly Kim Cheong (the fifth defendant) be set aside,” the lawyer said.

“The court also ordered a permanent injunction to be entered to prevent Kayveas, Kayveas Holdings, Chandrakumanan, Ly, and their agents from transferring the shares in Bintang Iradat and Wisma MyPPP.

“It also ordered the (Wisma MyPPP) building to be vacated and handed over to the insolvency DG.”

He said the court also ordered Kayveas, Chandrakumanan and Ly to pay legal costs of RM300,000 and for each of them to pay RM150,000 to the insolvency department.

He told this to reporters after proceedings in the case, which was also attended by lawyers Ashraf Appoo, representing the first to eighth defendants, and Carolyn Cheah, who represented Lau Beng Wei, as well as federal counsel Siti Nasuha Abdul Halim, who appeared on behalf of the insolvency department.

The 12 former MyPPP members, including Maglin Dennis D’Cruz, filed the suit in 2019.

According to the statement of claim, the plaintiffs said that after MyPPP was deregistered, all assets belonging to the party were vested under the insolvency department in accordance with Section 17 of the Societies Act 1966.

They claimed that in November 2018 and prior to the deregistration of the party, an illegal conspiracy was formed between Kayveas and other parties, which among others, aimed to cause loss, harm and damage to the MyPPP members who were entitled to the assets.

They claimed that Chandrakumanan and Ly deliberately entered into a consent judgment, dated Jan 16, 2019, over transfer of shares that was recorded before High Court judicial commissioner Darryl Goon, despite knowing that MyPPP had been deregistered two days earlier.

As such, they sought an order for the consent judgment to be set aside, a declaration that 100,000 shares in Bintang Iradat and Wisma MyPPP belonged to MyPPP as well as the assets vested under the authority of the insolvency department following the party’s deregistration.

The plaintiffs also applied for a permanent injunction to be granted to prevent Kayveas and his agents from transferring the shares in Bintang Iradat and Wisma MyPPP, as well as for the building to be vacated and handed over to the insolvency department. - FMT

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