KUALA LUMPUR: The High Court here has allowed an interim injunction filed by Aerotree Defence and Services Sdn Bhd to stop the government from using a RM1.87mil bank guarantee pending a decision in a lawsuit.
The injunction is linked to a RM353mil lawsuit filed by Aerotree against the government, the Defence Ministry and its secretary-general relating to the termination of a five-year rental agreement involving four American-made Black Hawk UH-60A helicopters.
Justice Dr Arik Sanusi Yeop Johari, in his brief decision on Tuesday (Dec 16), said the court was satisfied to grant the interim injunction application.
"I am of the view that Section 29 of the Government Proceedings Act 1956 does not strictly prohibit an interim injunction.
"I am satisfied that such relief may be granted," Justice Arik Sanusi said.
He also fixed Jan 27 for case management.
Aerotree filed the lawsuit on Sept 19, claiming that the government had agreed to lease the four helicopters worth RM187.5mil under a private funding initiative with the company to own, manage and maintain the assets.
According to the plaintiff, in the agreement, two helicopters were supposed to be sent within six months of the agreement letter, while the other two were to be sent in the next nine months.
Aerotree had also prepared a bond of RM1.87mil, guaranteed by a local bank.
Aerotree claimed that there was a delay in the delivery of the assets as there were technical adjustments, pilot training, and a disruption in the supply chain owing to the Russia-Ukraine war.
The plaintiff then set out to apply for three extensions until Oct 30 last year. However, on Oct 31, 2024, the company received a termination letter for failure to deliver the helicopters.
The plaintiff is seeking a court order to compel the government to proceed with the agreement based on the agreement letter dated April 17, 2023.
It is also seeking US$38.7mil in compensation, RM17.5mil in special damages, RM38.7mil in additional damages, as well as general, exemplary and aggravated damages.
