July 24 hearing for Irwan Serigar, Arul Kanda's bid to strike out 1MDB lawsuit

KUALA LUMPUR: The High Court here set July 24 to hear the application of former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah and former 1Malaysia Development Berhad (1MDB) chief executive officer Arul Kanda Kandasamy, to strike out a US$6.59bil (RM29bil) suit filed by 1MDB against them.

Lawyer Brendan Siva, who represented 1MDB, said on Wednesday (April 5) that Judicial Commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan, set the date during case management which was held online on Wednesday.

"The court also ordered both defendants (Mohd Irwan and Arul Kanda) to file additional affidavits for their application to amend the statement of defence, before or on May 31, as well as additional submissions for the applications to strike out the suit, if any, during the same period (before or on May 31),” he said.

The proceedings were also attended by lawyer Lavinia Kumaraendran, representing Mohd Irwan, while lawyer Gobinath Karuppan acted on behalf of Arul Kanda.

Mohd Irwan filed an application to strike out the suit on Feb 18, 2022, on the grounds that the suit against him was premature, as the investment of Brazen Sky Limited and the payment of Aabar Investments PJS Limited were clearly unsustainable, as the court has yet to determine that 1MDB suffered losses of US$1.83bil and US$3.5bil.

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 as a result of irregularities committed by others.

In May 2021, 1MDB filed a suit against Arul Kanda and Mohd Irwan over an alleged breach of trust and conspiracy, causing 1MDB to suffer losses amounting to US$1.83bil, 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 the two defendants committed a breach of trust and conspiracy by misappropriating 1MDB money, amounting to US$3.5bil, paid to Aabar Investments and US$1.265bil, 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$6.59bil for the breach, and an additional RM2.9mil from Mohd Irwan in relation to the Employment Extension Agreement. - Bernama

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