Court dismisses Dhaya Maju's bid to stop govt, Wee Ka Siong from axing KVDT2 contract

Court dismisses Dhaya Maju's bid to stop govt, Wee Ka Siong from axing KVDT2 contract
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KUALA LUMPUR (Sept 18): The High Court (construction division) has today dismissed an application by Dhaya Maju LTAT Sdn Bhd for an injunction against the government and Transport Minister Datuk Seri Wee Ka Siong to bar them from terminating a contract with the company for the construction of the Klang Valley Double Tracking Phase 2 (KVDT2) project.

This is despite the company having completed 24% of the project and the government having already made progressive payments in excess of RM93 million.

Justice Datuk Aliza Sulaiman in her decision ruled that the court cannot bar or impose any injunction against the government or its public officers from performing its duties.

"The Federal Court decision in the Lim Kit Siang case remains the law against granting an injunction against the government," she said.

With that, she did not allow the interim injunction and dismissed the application.

Justice Aliza ordered the company to pay costs of RM10,000.

Dhaya Maju LTAT's counsel Tan Sri Cecil Abraham indicated that the firm will appeal today's decision at the appellate court and will file an Erinford injunction.

A party appealing against a court decision may apply for an Erinford injunction, which is used to stop the other parties from dealing with the subject of a legal action until the disposal of the appeal.

The company filed the suit against Wee and the government following the minister's statement on Aug 28 that the government will re-tender the project.

Wee said the government will re-tender the project as Dhaya Maju LTAT was undertaking the project at an inflated price through direct negotiations with the previous Pakatan Harapan government.

Also present at the High Court hearing today was Dhaya Maju LTAT chief executive officer Datuk Mohamed Razeek Md Hussain Maricar. 

Mohamed Razeek had earlier affirmed an affidavit in support of the injunction application, fearing the proposed government move to retender the project would mean a termination of its present contract with Dhaya Maju LTAT.

Appearing with Abraham were lawyers T Kuhendran and Sumaeya Shamsudin. 

The government and Wee were represented by senior federal counsels Asliza Ali and Habibah Haron.

Following today's decision, Justice Aliza ordered the government and Wee to file their defence by Oct 2, 2020 and Dhaya Maju LTAT to reply by Oct 16, 2020.

Justice Aliza fixed Oct 19, 2020 for case management.

Read also:
High Court to hear suit against govt, Wee Ka Siong to prevent double tracking project contract termination
Overpriced Klang Valley Double Tracking 2 tender to be reopened

Lam Jian Wyn