Rail firm’s suit against job termination, injunction reinstated by Court of Appeal

Appeals court says the summary dismissal of the suit was a breach of natural justice as neither party was given a fair opportunity to be heard.

The Court of Appeal has restored Puncak Gali Sdn Bhd’s lawsuit against Emrail Sdn Bhd with costs of RM30,000 and ordered that its injunction application be re-heard before a different judge within two weeks.

PUTRAJAYA:

 A company specialising in railway track works has successfully overturned a High Court ruling six months ago that set aside its ex parte injunction for relief pending arbitration, and summarily dismissed its lawsuit.

A three-member Court of Appeal bench, chaired by Justice Zaini Mazlan, allowed Puncak Gali Sdn Bhd’s appeal today, ruling that the Shah Alam High Court erred in setting aside the injunction without Emrail Sdn Bhd having filed an application.

Zaini said the summary dismissal of the suit amounted to a breach of natural justice as neither party was given a fair opportunity to be heard.

The court, also comprising Justices Faizah Jamaludin and Ahmad Shahrir Salleh, reinstated Puncak Gali’s suit and directed that the injunction application be re-heard before a different judge within two weeks.

It also ordered Emrail to pay RM30,000 in costs to Puncak Gali.

The dispute stemmed from Emrail Sdn Bhd’s termination of a letter of award granted to Puncak Gali for subcontract works in connection with a RM145.3 million track rehabilitation project between the Gua Musang and Tumpat railway stations in Kelantan.

Last September, Puncak Gali obtained an ex parte injunction from the High Court, restraining Emrail from appointing another party to carry out the works, which it claimed would be in breach of the subcontract.

The injunction also sought to preserve Puncak Gali’s rights to pursue alternative dispute resolution mechanisms in the interim.

However, when the matter came up for hearing in October, the High Court set aside the injunction without Emrail making a formal application.

The court also summarily dismissed Puncak Gali’s suit without hearing full arguments on its merits.

Counsel Steven Thiru, Alvin Oh, Chong Jen Hui, Priscilla Faith and Sew Chang Peng appeared for Puncak Gali, while Emrail was represented by Ooi Suan Kim and Boo Honn Chin. - FMT