Developer wants to settle lawsuit over Melaka Gateway coastal project

PUTRAJAYA: The legal action involving developer KAJ Development Sdn Bhd and the Melaka state government over the termination of the Melaka Gateway coastal reclamation project is likely to be resolved out of court.

This was disclosed to reporters Wednesday (Feb 9) by Senior Federal Counsel Ahmad Hanir Hambaly, representing the Melaka state government, after the case came up before a three-judge panel of the Federal Court chaired by Court of Appeal president Tan Sri Rohana Yusuf.

The other judges on the bench were Datuk Abdul Rahman Sebli and Datuk Mary Lim Thiam Suan. The hearing of the company’s application for leave to appeal had been fixed for Wednesday.

Ahmad Hanir said KAJ Development’s counsel Datuk Loh Siew Cheang applied for an adjournment of Wednesday's proceeding and informed the panel that his client wanted to settle its case.

Ahmad Hanir said he did not oppose the adjournment.

The court then fixed May 19 to hear the case.

KAJ Development is appealing the Court of Appeal’s decision on April 9 last year dismissing its application to obtain leave to initiate a judicial review.

On Feb 17, the Melaka High Court dismissed the developer's application for leave to have the full merits of the judicial review heard, ruling that there was no public law element involved in the state's decision.

On Dec 4, 2020 the company filed the judicial review application against the Melaka government after its agreement with the state government was terminated.

The company entered into an agreement with the Melaka government on Oct 4, 2017 to reclaim the state’s coastal land and islands.

KAJ Development is seeking a court order to quash the state government's order to issue the notice of termination dated Nov 11, 2020.

The company also wants a declaration that the termination notice is null and void, as it violates Section 7 and 9(1) of the Temporary Measures to Reduce the Impact of Covid-19 Act and another declaration that the termination is illegal and unlawful.

Melaka Gateway is a mixed development project worth RM43bil consisting of three new islands. – Bernama