Court rejects Najib's bid for stay of SRC suit hearing

KUALA LUMPUR: The High Court here today dismissed former Prime Minister Datuk Seri Najib Tun Razak's application for a stay of hearing of the SRC International Sdn Bhd's US$1.18 billion civil suit against him.

Judge Datuk Ahmad Fairuz Zainol Abidin said Najib would not be prejudiced if the SRC suit is ongoing alongside the pending of his RM42 million of SRC funds criminal appeal before the Federal Court.

"It is the view of this court that the outcome of the Federal Court appeal and applications are purely speculative at this juncture. Nevertheless, whatever the outcome of the Federal Court (appeal) does not bar the defendant (Najib) from making amendments to pleadings, subject to necessary applications being made.

"It is also the view of the court that the management of this suit must continue and that the filing of the defendant's defence is critical to ensure that the suit progresses efficiently," he said during a virtual proceeding today.

The court then fixed Feb 24 for further case management and Najib was also ordered to file his statement of defence to the civil action by March 31.

Counsel Harvinderjit Singh appeared for Najib, while Datuk DP Naban acted for SRC, a subsidiary of 1Malaysia Development Berhad (1MDB).

During previous proceedings, Harvinderjit submitted that his client wanted a stay of the suit until the full disposal of the criminal cases involving RM42 million of SRC funds, which was in the final stage at the Federal Court as well as three money-laundering charges involving RM27 million of the company's funds at the High Court here.

On May 7 last year, SRC under its new management filed legal action against Najib and its former directors - Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail - but later removed the six names from the suit and retained Najib as the sole defendant.

SRC as a plaintiff, in the writ of summons, alleged that Najib had abused his power and obtained personal benefits from SRC funds as well as misappropriated the funds. Najib was SRC's Emeritus Advisor from May 1, 2012, until March 4, 2019.

SRC, which is now wholly owned by the Ministry of Finance Incorporated (MoF Inc). is seeking general damages, exemplary, additional and interest, costs and other appropriate relief provided by the court.

On Dec 7 last year, the Court of Appeal upheld the conviction and 12-year jail term and RM210 million fine on Najib for misappropriating RM42 million in SRC funds after dismissing his appeal against the KL High Court decision on July 28, 2020. On the same day, Najib filed a notice of appeal to the Federal Court.

-- BERNAMA