KUALA LUMPUR: UMNO has filed an application for a stay of proceedings in a suit against it by SRC International Sdn Bhd for allegedly receiving a misappropriated sum of RM16 million from the company.

In the affidavit, UMNO executive secretary Datuk Mohd Sumali Reduan said among the reasons for the application was that the defendant filed a notice of appeal to the Court of Appeal against Judicial Commissioner Quay Chew Soon's decision on Nov 11 that dismissed the party's application to strike out the suit and allow the application by SRC International, Gandingan Mentari and Jendela Pinggiran as the plaintiffs to amend the writ of summons and statement of claim.

"The defendant is not satisfied with the decisions and has filed two notices of appeal to the Court of Appeal on Nov 17.

"On the same day (Nov 10), Quay allowed the defendant's application for an interim stay of the proceedings of the action (suit) including from filing its defence statement and directed the defendant to file an application for a stay of proceedings for the suit," said Mohd Sumali in the affidavit.

Mohd Sumali claimed there was no prejudice against the plaintiffs if the court allows the stay of proceedings of the suit.

"If this application (stay of proceedings) is not allowed by the court and the defendant is instructed to file a defence statement, the appeals will be rendered nugatory and academic because if the appeals are allowed by the Court of Appeal the whole proceedings of this application will be cancelled," said Mohd Sumali.

Meanwhile, lawyer Shahrul Fazli Kamarulzaman who represented UMNO when contacted by Bernama after the case management before the High Court Senior Assistant Registrar Noordura Mohamed Din, said the court had fixed an online hearing for the application before Quay on March 10 next year.

Mohamed Baharudeen Mohamed Ariff who represented UMNO and Nur Syafinaz Vani Abdullah who represented all the plaintiffs participated in today's proceedings.

In its writ of summons, the plaintiffs claimed that the political party knew, or ought to have known, that the monies belonged to SRC International and they had no basis to receive the funds.

On May 10, the Finance Ministry confirmed that 1MDB and its subsidiary SRC International Sdn Bhd had filed 22 civil suits to seek its assets of over RM96.6 billion, including RM300 million from various local parties.

It said the writ of summons was filed on May 7, six by 1MDB and 16 by SRC.

-- BERNAMA