KUALA LUMPUR: The RM1bil lawsuit filed by Menara Kuala Lumpur Sdn Bhd (MKLSB) and its parent company Hydroshoppe Sdn Bhd against the government over alleged wrongful contract termination will be heard on its merits in a full trial.
High Court judge Roz Mawar Rozain ordered for the hearing to proceed after finding that there were triable issues in the case.
In her decision on Tuesday (July 15), the judge dismissed the application by Communications Minister Datuk Fahmi Fadzil (first defendant) and the government (second defendant) to strike out the lawsuit by the former operator of Kuala Lumpur Tower.
In March, Hydroshoppe with MKLSB filed the legal action against Fahmi, the government, LSH Service Master Sdn Bhd, LSH Best Builders Sdn Bhd and Service Master (M) Sdn Bhd.
LSH Service Master, a joint venture company between LSH Best Builder and Service Master, was awarded the concession that replaced Hydroshoppe and MKLSB in managing the tower.
Justice Roz Mawar, however, allowed the striking out application by the third until the fifth defendants; LSH Service Master, LSH Best Builders and Service Master.
"This court is of the considered view that it cannot strike out the case against the first and second defendants here at this juncture because there are triable issues especially pertaining to the proposed 2022 agreement.
"The trial will be cut short most definitely but this court cannot allow the striking out against the first and second defendants because it is not a clear case where they are plainly and obviously unsustainable.
"The circumstantial evidence may strongly suggest that there's no binding agreement that concluded in 2022 but this court must have that opportunity to determine viva voce evidence," she said.
The court fixed Nov 3 for case management.
Hydroshoppe and Menara KL filed the lawsuit alleging breach of contract against the respondents. They claimed that LSH Capital and its subsidiaries induced a breach of an agreement purportedly reached with the government during a meeting in August 2022.
The plaintiffs further claimed that the respondents engaged in dishonest assistance and are seeking a declaration that the award of the KL Tower concession to LSH Service Master is void and unlawful.
In addition, they are claiming an estimated RM1bil in damages and are seeking the concession of the iconic Kuala Lumpur landmark to be transferred back to them.
