Dhaya Maju obtains ad-interim injunction over KVDT2 suit

Dhaya Maju LTAT has obtained an ad-interim injunction to prevent the government and Keretapi Tanah Melayu Berhad (KTMB) from instructing the company to stop work on the Klang Valley Double Tracking (KVDT2) rail project.

The High Court in Kuala Lumpur granted the plaintiff company’s ad-interim injunction application on Nov 2, which would be in effect until Dec 12 or any further date as directed by the court.

The ad-interim injunction is in relation to Dhaya Maju’s lawsuit against the alleged termination of its KVDT2 contract with the government via a letter dated Sept 23.

Under the law, a party in a legal action can apply for an ad-interim injunction to maintain status quo in the matter, as the main action proceeds.

On Nov 9, Malaysiakini reported that Dhaya Maju filed this particular lawsuit involving the letter. It was also reported that the company had filed the related ad-interim injunction application.

Altogether, the company at present has at least three ongoing legal actions in the High Court over the alleged termination of its KVDT2 contract with the government.

One is its judicial review application against the purported termination of the contract. This legal action was filed on Sept 3.

Another is the Writ of Summons filed on Sept 7.

The other is the present Writ of Summons, which targets the alleged termination of the KVDT2 contract via the Sept 23 letter. This particular legal action was filed on Oct 27.

All three legal actions named the government of Malaysia and Transport Minister Wee Ka Siong as defendants for the two writ actions, and as respondents for the judicial review application.

The writ action over the letter also named engineering consultancy firm Opus Consultants (M) Sdn Bhd and KTMB as defendants.

According to a copy of the court order sighted by Malaysiakini, the first defendant (government) and the fourth defendant (KTMB) were ordered not to enter the KVDT2 project site nor to instruct the plaintiff (Dhaya Maju) to stop work there until Dec 10 or any other date as later determined by the court.

“That the First Defendant and the Fourth Defendant whether by themselves, their servants, employees or representatives, be restrained and/or prevented from entering onto the KVDT2 project site and instructing the plaintiff to stop works in relation to the purported termination of the revised contract, until Dec 10, 2020, or any further date as directed by this court.

“That the First Defendant and the Fourth Defendant, whether by themselves, their servants, employees or representatives, be restrained and/or prevented from entering onto the KVDT2 project site and instructing the plaintiff to vacate the site until Dec 10, 2020, or any further date as directed by this court,” the court document stated.

The court order also prevents KTMB from cancelling Dhaya Maju’s Licence to Occupy until Dec 10 or any other later date as determined by the court.

Checks on the online cause list at ecourtservices.kehakiman.gov.my showed that the matter was fixed for hearing before High Court judge Lim Chong Fong at 9am on Dec 10.

In the writ action against the government, Wee, Opus Consultants (M), and KTMB, Dhaya Maju is seeking, among others, a declaration that the purported termination of the contract, via the Sept 23 letter, amounted to a breach of contract and was unlawful.

The plaintiff seeks a declaration that the purported termination of the contract via the letter, without providing 30 days' notice, was invalid, unlawful, and wrong in law.

Dhaya Maju is seeking a declaration that the contract is binding and continues to be binding on the government, which is the first defendant.

On Aug 28, Wee announced that the government will reopen the tender for the KVDT2 rail project, alleging that investigations found the RM4.475 billion price tag for the project was too high, despite cost-cutting measures made by the previous Pakatan Harapan administration.

The project came into the spotlight after Finance Minister Tengku Zafrul Abdul Aziz revealed details of the 101 contracts that were purportedly awarded through a direct negotiation process during the time Pakatan Harapan was in power.

KVDT2 is the largest contract, in terms of value, on the list.