KUALA LUMPUR: The High Court here today dismissed former 1Malaysia Development Berhad (1MDB) chief executive officer Arul Kanda Kandasamy and its former chairman Tan Sri Mohd Irwan Serigar Abdullah's bid to strike out a US$6.59 billion suit filed by 1MDB against them.
High Court Judicial Commissioner (JC) Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, in dismissing the duo's applications, ruled that the suit must go to full trial as the court needed to hear testimonials from the witnesses.
"The matter cannot be decided by affidavits and this is not a case that can be summarily decided. Clearly, the allegation of fraud and conspiracy cannot be settled through a simple approach. Thus, I maintain the status quo and the suit will go for a full trial.
"This is not an obvious matter for striking out but requires this court to investigate via full trial. Justice would still come to the rightful party, and it merely takes a longer journey to achieve it," Raja Ahmad said.
He then ordered Arul Kanda and Mohd Irwan to pay RM10,000 each as costs to 1MDB and fixed Sept 14 for case management.
Lawyer Datuk Lim Chee Wee appeared for 1MDB, while lawyers Sanjay Mohan and Lavinia Kumaraendran represented Arul Kanda and Mohd Irwan, respectively.
Mohd Irwan filed the application to strike out the suit on Feb 18, 2022, on the grounds that it was premature as the investment of Brazen Sky Limited and the payment of Aabar Investments PJS Limited were clearly unsustainable since the court had yet to determine that 1MDB suffered losses of US$1.83 billion and US$3.5 billion.
Arul Kanda filed the same application on June 2, 2022, on the grounds that he cannot be held responsible for the losses incurred by 1MDB due to irregularities committed by others.
In May 2021, 1MDB filed a suit against the duo over an alleged breach of trust and conspiracy, causing 1MDB to suffer losses amounting to US$1.83 billion, in relation to its investment in 1MDB-Petrosaudi Ltd, which was converted into the alleged Brazen Sky Limited investment, said to be found in the Bridge Global Fund.
1MDB also claimed that Arul Kanda and Mohd Irwan committed a breach of trust and conspiracy by misappropriating 1MDB's funds, amounting to US$3.5 billion, paid to Aabar Investments and US$1.265 billion, paid to International Petroleum Investment Company (IPIC), on May 9, 2017.
1MDB alleged that Mohd Irwan also conspired with Arul Kanda to cause the company to implement the Employment Extension Agreement, and made a substantial payment of RM2,905,200 to Arul Kanda in accordance with the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damage.
In this regard, 1MDB, among others, demanded that the two defendants pay US$6.59 billion for the breach and an additional RM2.9 million from Mohd Irwan in relation to the Employment Extension Agreement.
-- BERNAMA
Bernama
Wed Aug 23 2023
The High Court ordered 1MDB CEO Arul Kanda Kandasamy and its former chairman Tan Sri Mohd Irwan Serigar Abdullah to pay RM10,000 each as costs to 1MDB and fixed Sept 14 for case management. - BERNAMA/SINAR
Mother and friend jailed three years for locking up boy in cat cage
The duo are accused of abusing the three-and-a-half-year-old boy by locking him in a cat cage at an apartment in Brickfields.
Ativa driver angrily lifted Zaharif onto roadside, says teenage witness
A teenage boy testified in the Court that a senior police officer lifted Muhammad Zaharif onto the roadside following a collision.
Woman killed, man hurt after container falls and crushes cars
The container being transported on a trailer lorry topples and crushes them in the accident involving five vehicles.
The late Daim, from ex-banker and realtor to nation's economic troubleshooter
Tun Daim Zainuddin is best known as former Prime Minister Tun Dr Mahathir Mohamad's chief economic troubleshooter.
PM's official visit to Cairo bolsters Malaysia-Egypt ties
Egypt is confident that Malaysia will play an important role in strengthening regional cooperation and joint development, says PM Anwar.
Lewotobi volcano eruption: Malaysian Embassy working to evacuate 83 stranded Malaysians
The number of those stranded, the majority of whom are tourists, is expected to increase following the cancellation of flights.
Visibility drops in parts of Delhi as pollution surges
Delhi battles severe pollution every winter as cold, heavy air traps dust, emissions, and smoke from farm fires set off illegally.
Whistleblowers must go through proper agency channels for protection - Azalina
For example, in cases of corruption, the whistleblower must first report to the MACC, says Datuk Seri Azalina Othman.
Flights cancelled to and from Indonesia's Bali due to volcanic ash
Further eruptions of the volcano spewing ash clouds as high as 10 km, forces thousands to evacuate.
Daim Zainuddin a loyal businessman, politician
Tun Daim Zainuddin was instrumental in the country's business landscape in the 1980s and 1990s, says Datuk Yong Soo Heong.
Did Israel meet US Gaza aid requirements? Israel, UN respond
Israel has says it met most of the 16 specific demands put forward by Washington but was still discussing some items.
Up to US to decide what to do with decommissioned HAWK missiles, Taiwan says
The United States and its allies have provided billions of dollars of weapons to Ukraine since Russia attacked the country.
Ministers share condolence messages over passing of Tun Daim
The funeral prayer is scheduled at Masjid Wilayah Persekutuan in Jalan Duta after the Asar prayers.
Malaysia to launch cross-border re-auction for Singapore via ENEGEM by year-end - DPM Fadillah
By sharing excess energy, the country can reduce reliance on fossil fuels while building an integrated ASEAN energy infrastructure.
Netanyahu says Iran's government fears its people more than Israel
Netanyahu says life in Iran could be different if the country were free and funds could be used education, roads water and hospitals.
Police searching for teen girl missing since Nov 7
Che Nor Qurratu Aini was last seen leaving her home around 5pm to go to a convenience store, according to police.
PM’s Egypt visit unlocks RM4.8 bil in export potential - MITI
Egyptian companies express interest in investment opportunities in Malaysia, particularly in medical devices and pharmaceuticals, says MITI.
Global CO2 emissions to hit record high in 2024, report says
The bulk of these emissions are from burning coal, oil and gas.
At UN, US warns Israel against forcible displacement, starvation in Gaza
Israeli authorities are blocking humanitarian assistance from entering North Gaza, where fighting continues, says acting UN aid chief.
Bus falls into Indus river in Pakistan, killing 14
Twelve of the remaining passengers are missing, and one passenger has survived the accident with injuries, according to authorities.