Court dismisses ex-PLKN operator’s suit to recover RM14.8mil from govt

 

The national service programme was introduced in 2004 by the Barisan Nasional government and abolished in 2018 when the Pakatan Harapan administration took over. (Bernama pic)

KUALA LUMPUR: 

The High Court here has dismissed a national service (PLKN) camp operator’s lawsuit against the government to recover more than RM14.8 million it was allegedly owed.

Sri Ledang Ventures Sdn Bhd was appointed a PLKN camp operator in 2005. The programme was discontinued by the government in 2018 and Sri Ledang was informed that the termination was done on grounds of 

national interest

.

The company then filed a lawsuit to challenge the termination, which it claimed was unconstitutional.

Judicial Commissioner Roz Mawar Rozain said the contract Sri Ledang signed with the government stated that the government could terminate the agreement on grounds of national interest.

She also noted that Sri Ledang and the government had entered into this contract 

freely and voluntarily

.

The plaintiff (Sri Ledang) must be taken to have understood and accepted the terms of their agreement, including clause 36 (termination of contract on reason of national interest) of the contract,

 said Roz Mawar in her grounds of judgment.

“The (plaintiff’s) witness was also aware of this term when Sri Ledang agreed to enter into this agreement.

The court does not find that clause 36 of the contract offended any law, or the Federal Constitution, for it to be declared as void.

The court added that Sri Ledang had failed to show or suggest the termination was carried out in bad faith.

Roz Mawar said PLKN’s abolishment fell within clause 36, and it was not for the court to question the insight or necessity of a policy decision.

The abolishment of PLKN, being a significant national policy decision, is presumed to have been made in consideration of national interest,

 Roz Mawar said.

While she took note of Sri Ledang’s complaint that it suffered financial losses due to the contract’s termination, she said clause 36 explicitly provided that the contractor was not entitled to any form of losses, such as anticipated profit, compensation and damages.

She said as a commercial entity, the plaintiff must be taken to have understood and accepted the risks involved before signing the contract with the government.

The business risks on either side were always present, as they usually are in the world of commerce,

 Roz Mawar added.

The PLKN programme was introduced in 2004 by the Barisan Nasional government and abolished in 2018 when the Pakatan Harapan administration took over. - FMT